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Kelly Services Inc. (KELYA: NASDAQ) announced revenue of USD 1.39 billion for the fourth quarter ending 29 December 2013, an increase of +0.8% compared with USD 1.38 billion last year. The company achieved a gross profit of USD 231.5 million, a year-on-year rise of +4.1% from a gross profit of USD 222.2 million last year.
The company achieved net earnings of USD 17.2 million for Q4 2013, an increase of +93.7% compared with USD 8.9 million for the same quarter last year.
Carl T. Camden, President and CEO of Kelly Services, commented: “Our performance exceeded our expectations, and we’re pleased with the strategic progress we’ve made despite uneven global economic conditions. In the face of flat revenue growth, Kelly experienced an improvement in both [gross profit] and staffing fees, and continued to deliver double-digit revenue growth in our outsourcing and consulting segment.”
Revenue derived from the Americas fell organically by -3.2% to USD 884 million during the fourth quarter, down from USD 917.9 million last year. In terms of constant currency, revenue fell in both the commercial (-2.5%) and professional staffing (-5%) business segments. Fee-based income, however, rose organically in both segments, by +11.2% and +29.3%, respectively. Total Group fee income for the region rose by +19.7%, in constant currency, to USD 8.1 million.
The biggest organic revenue growth across the Americas was recorded in Brazil, up +10.3% to USD 14 million. Puerto Rico was the only other region to report organic revenue growth, up +5.1% to USD 24.6 million. Organic revenue fell in the United States (-0.6%), Canada (-8.4%), and Mexico (-3.5%).
The EMEA region reported an organic increase in revenue of +6.9% during the fourth quarter of 2013, up from USD 256.4 million in Q4 2012 to USD 280.2 million. Increased organic revenue was reported in both the commercial and professional staffing businesses, by +6.6% and +8.4% respectively. Fee-based income, however, rose by +6.2% for commercial staffing and fell by -9% for professional staffing. Total group fee-based income fell by -0.3% to USD 8.5 million, on an organic basis.
Of the eight EMEA countries, the only country to report a year-on-year fall in organic revenue was Italy (-0.2%). The biggest year-on-year increases were reported in Portugal (+37.2%), Switzerland (+11.6%), and France (+7.1%).
APAC revenue remained unchanged at USD 96.6 million in the fourth quarter of 2013. Commercial staffing revenue rose by +8.9%, while professional staffing revenue declined -14.4%. Fee-based income rose by +10.6%, on an organic basis, for commercial staffing to USD 2.4 million but fell by -21.8% for professional staffing.
Australia and Malaysia both reported organic falls in revenue, of -0.5% and -6.5%, respectively. Revenue fell to USD 30.2 million in Australia and USD 16.1 million in Malaysia. Year-on-year rises were reported in Singapore (+18.2%) and New Zealand (+7.6%).
Revenue growth of +24% was reported by the outsourcing and consulting business, KellyOCG, rising from USD 29 million in Q4 2012 to USD 34.4 million in Q4 2013. Gross profit increase +18.8% to USD 34.4 million up from USD 29 million a year ago.
Looking ahead, Mr Camden added: "The market is demanding access to specialised talent and more holistic workforce solutions, and we're going to invest heavily in those areas. We will hire niche recruiters, adapt our operating models, and build our talent supply chain capabilities with speed and intensity in 2014. We are confident these investments are right for our business, right for our customers and will support long-term growth for Kelly."
In trading yesterday, the company’s share price closed up +1.4% at USD 24.11, an increase of +52.9% compared with a year ago. Based on its current share price, the company has a market value of USD 903.2 million.