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Kelly revenue falls 3%, but OCG up 14%

May 08 2013

Kelly Services Inc. (NASD: KELYA) reported first-quarter revenue fell 3.0 percent to $1.31 billion from $1.35 billion in the first quarter of last year. President and CEO Carl Camden said the sluggish economic growth in 2012 continued into the first quarter of 2013 and was accompanied by a softening demand for temporary labor. However, he said the company is winning higher margin business and expanding key customer relationships.

Kelly’s professional and technical staffing revenue in the Americas inched up 0.4 percent to $251.0 million in the first quarter. However, commercial staffing revenue fell 4.6 percent in the Americas to $638.3 million.

In Europe, the Middle East and Africa, first-quarter revenue fell 4.2 percent to $244.5 million in professional/technical and commercial combined. Asia Pacific professional/technical and commercial revenue fell 9.4 percent in the first quarter to $91.7 million.

However, global OCG revenue rose 14.2 percent to $99.0 million. OCG includes contingent workforce outsourcing (managed service solutions), business process outsourcing, recruitment process outsourcing, independent contractor compliance and other services.

Looking at geography alone, U.S. revenue fell 2.2 percent to $839.5 million.

Kelly’s global first-quarter gross margin was 16.5 percent, unchanged from the year-ago quarter.

Global first-quarter net income rose 34.4 percent to $12.9 million from $9.6 million in the first quarter of last year.

Kelly Services Inc. (NASD: KELYA)
 For the first quarter ended March 31, 2013, compared with the same period in the previous year.
 Revenue: $1.31 billion, -3.0 percent
 Net income: $12.9 million, +34.4 percent

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