Daily News

View All News

Kelly 3Q net income drops 15%

October 23 2007

Kelly Services Inc. (NASD: KELYA) reported a drop of 15% in net income for the third quarter ended Sept. 30. The company posted earnings of $15.1 million for the quarter, down from $17.8 million from the same period in 2006. Revenue for the quarter totaled $1.425 billion, a 2% increase compared to the $1.397 billion for the corresponding quarter in 2006. Earnings from operations include $2.5 million of costs related to the restructuring of the company's Americas Commercial and UK operations.

"Despite continued weakness in the U.S. staffing market, we're pleased that we delivered solid profitable results," said President and CEO Carl Camden. "We also accomplished a number of key strategic objectives during the quarter as we continue to diversify geographically and move into higher margin fee based businesses.

"We recently announced an agreement to acquire access AG, a $15 million revenue recruiting process outsourcing firm with operations in Germany and Austria. The acquisition of access AG will position Kelly as a leader in one of the fastest growing recruitment markets in the world."

Some highlights of results for the company's key segments were:

  • Kelly's Americas Commercial segment, which accounted for 48% of total sales, decreased 5.7% year over year in the third quarter. 
  • Revenue in the Americas PTSA segment, which accounted for 19% of total sales, increased 1.6% year over year in the third quarter.  
  • Revenue in the International Commercial segment, which accounted for 29% of total sales, increased 13.8% year over year in the third quarter. On a constant currency basis, revenue increased 5.8%. 
  • Revenue in the International PTSA segment, which accounted for 4% of total sales, increased 40.4% year over year in the third quarter. On a constant currency basis, revenue increased 30.3%.  

 For the full year of 2007, Kelly is forecasting earnings will range between $1.61 and $1.66 per share, compared to $1.56 per share from continuing operations in 2006. The range excludes the gain on the sale of the Home Care business and the UK and Americas restructuring costs.

Kelly Services Inc. (NASD: KELYA)
For the third quarter ended Sept. 30, compared with the same period in 2006

Revenue: $1.425 billion, +2%
Net income: $15.1 million, -15%

Comments

Add New Comment

Post comment

NOTE: Links will not be clickable.
Security text:*