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UK — Re-structuring charges contribute to Kelly’s operational losses

06 August 2009

Kelly Services (NASDAQ:KELYA), the US Workforce Management Services and Human Resources specialist, who yesterday reported a 29.1% year-over-year fall in revenues to $1.03 billion for the second quarter of 2009.

Kelly had previously announced that it would restructure its UK network during 2009 and re-structuring costs amounted to $2.4 million in Q2 2009 contributing to an overall loss from operations of $74.5 million.

Diluted losses per share from continuing operations in the second quarter of 2009 were $1.89 compared to second quarter 2008 earnings of $0.30 per share. UK re-structuring charges totalled $0.07 per share in the second quarter of 2009.

Europe was Kelly's worst performing region in the second quarter with a revenue decline of 27% in constant currency. France, which is now Kelly's largest operation in Europe following the downsizing of the UK, shrunk by 24% while Italy had the sharpest fall with a 46% decline in revenue. German revenues fell by 22% and Switzerland by 33%.

Carl T. Camden, President and CEO, commented that “the company's losses reflect the continued weakened state of labour markets throughout the world".

"In this challenging environment, we remain focused on expense control, where our efforts have had a significant impact on our overall performance. Going forward, we will seek out additional opportunities to simplify our business structure and operate more efficiently," Camden said further.



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