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Europe — Kelly Services signal improved revenue trends

08 February 2010
 

Kelly Services, Inc. (NASDAQ:KELYA) (NASDAQ:KELYB), the work force solutions provider, has announced results for the fourth quarter and year ended 3 January 2010.

Carl T. Camden, President and Chief Executive Officer, announced revenue for the fourth quarter of 2009 totalled $1.2 billion, a 7% decrease compared to the corresponding quarter in 2008. On a sequential basis, fourth quarter revenue increased 14%, compared to the third quarter in 2009. Revenue for the full year totalled $4.3 billion, a 22% decrease compared to the prior year. The fourth quarter included an extra week which adds approximately 4-5% to Kelly's quarterly comparisons and 1% to annual comparisons.

Losses from operations for the fourth quarter of 2009 totalled $13.0 million, compared to losses from operations of $83.7 million reported for the fourth quarter of 2008. Included in the results from operations for the fourth quarter of 2009 are restructuring charges of $13.4 million. The loss from operations in the fourth quarter of 2008 included impairment charges of $80.5 million and restructuring charges of $4.3 million. Excluding the impairment and restructuring charges, earnings from operations were $0.4 million in the fourth quarter of 2009 compared to $1.1 million in 2008.

Losses from operations for the full year of 2009 totalled $146.1 million compared to a loss of $70.3 million in 2008. The results for the full year 2009 include $53.1 million of impairment charges, $5.3 million of legal charges and $29.9 million of restructuring charges. The results for 2008 included $80.5 million of impairment charges, $22.5 million of legal charges and $6.5 million of restructuring charges.

In France Q4 2009 revenues were up by 4.7% from $75.1 million in Q4 2008 to $78.7 million in Q4 2009. In constant currency revenues were down by -6.2%.
 
In the United Kingdom Q4 2009 revenues were down by -46.5% from $80.7 million in Q4 2008 to $43.1 million in Q4 2009. In constant currency revenues were down by -48.1%.

In Switzerland Q4 2009 revenues were down by -6.4% from $41.4 million in Q4 2008 to $38.8 million in Q4 2009. In constant currency revenues were down by
-17.5%.

In Portugal Q4 2009 revenues were up by 24.4% from $15.6 million in Q4 2008 to $19.4 million in Q4 2009. In constant currency revenues were up by 11.3%.
 
In Italy Q4 2009 revenues were down by -24.8% from $25.2 million in Q4 2008 to $19 million in Q4 2009. In constant currency revenues were down by -32.9%.
 
In Germany Q4 2009 revenues were down by -0.3% from $17.7 million in Q4 2008 to $17.6 million in Q4 2009. In constant currency revenues were down by
-10.5%.
 
In Norway Q4 2009 revenues were up by 1.7% from $16.9 million in Q4 2008 to $17.3 million in Q4 2009. In constant currency revenues were down by -14.2%.
 
Commenting on the fourth quarter results, Camden was optimistic. "We are very pleased that the improved revenue trends in our business, combined with our significant cost reduction initiatives allowed us to realise a small operating profit for the fourth quarter, excluding restructuring charges."

"We look forward to 2010, and will focus on maximizing profitability across all operations; accelerating growth of higher-margin Professional & Technical disciplines and outsourcing and consulting services; winning new business, and helping our customers manage their ever-changing workforce needs."

 

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