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View All NewsKelly Q3 revenue up 3% in constant currency
Third-quarter revenue at Kelly Services Inc. (NASD: KELYA), the fifth-largest US staffing firm, rose 3.0% on a constant currency basis with Asia-Pacific operations rising 9.5% in constant currency and Europe up 3.5% in constant currency. Third-quarter Americas revenue rose 2.1% in constant currency; US revenue was up 3.0%, but Canadian revenue fell 12.6% in constant currency.
Kelly’s OCG segment reported third-quarter revenue rose 16.8% in constant currency. The division handles recruitment process outsourcing, executive search and other services.
| (US$ millions) | Q3 2015 | Q3 2014 | % growth | % constant currency |
| Americas Commercial | $615.5 | $640.8 | -4.0% | -1.1% |
| Americas Professional & Technical | $242.8 | $242.5 | 0.1% | 0.6% |
| EMEA Commerical | $199.0 | $231.3 | -13.9% | 2.6% |
| EMEA Professional & Technical | $43.6 | $48.1 | -9.3% | 7.5% |
| APAC Commerical | $83.2 | $91.0 | -8.5% | 9.2% |
| APAC Professional & Technical | $9.9 | $10.6 | -6.4% | 11.8% |
| OCG* | $171.8 | $149.8 | 14.7% | 16.8% |
*Services in Kelly's Outsourcing and Consulting Group (OCG) includes recruitment process outsouring (RPO), contingent workforce outsourcing (CWO), business process outsourcing (BPO), payroll process outsourcing (PPO), executive placement and outplacement.
Quote
“Our third quarter results confirm that Kelly is operating as a more efficient organization, delivering both top-line growth and operating leverage,” said President and CEO Carl Camden. “Excluding the 2014 restructuring charges, we dropped nearly 50% of our constant currency GP growth to the bottom line during the quarter; our 2014 investments in PT and OCG are continuing to yield results; and we’re expanding Kelly’s role as a trusted talent advisor to many of the world’s top companies.”
Revenue by segment
| (US$ millions) | Q3 2015 | Q3 2014 | % growth | % constant currency |
| Americas Commercial | $615.5 | $640.8 | -4.0% | -1.1% |
| Americas Professional & Technical | $242.8 | $242.5 | 0.1% | 0.6% |
| EMEA Commerical | $199.0 | $231.3 | -13.9% | 2.6% |
| EMEA Professional & Technical | $43.6 | $48.1 | -9.3% | 7.5% |
| APAC Commerical | $83.2 | $91.0 | -8.5% | 9.2% |
| APAC Professional & Technical | $9.9 | $10.6 | -6.4% | 11.8% |
| OCG* | $171.8 | $149.8 | 14.7% | 16.8% |
Revenue by geography
| (US$ millions) | Q3 2015 | Q3 2014 | % growth | % constant currency |
| Americas | ||||
| United States | $899.8 | $873.7 | 3.0% | 3.0% |
| Canada | $37.9 | $51.9 | -27.0% | -12.6% |
| Mexico | $31.3 | $37.0 | -15.2% | 6.1% |
| Puerto Rico | $23.8 | $25.7 | -7.5% | -7.5% |
| Brazil | $10.4 | $13.6 | -23.5% | 11.4% |
| Europe, Middle East and Africa | ||||
| France | $63.1 | $70.1 | -10.0% | 7.4% |
| Switzerland | $58.0 | $66.7 | -13.0% | -8.2% |
| Portugal | $33.5 | $33.3 | 0.8% | 20.2% |
| United Kingdom | $27.7 | $26.2 | 5.7% | 14.0% |
| Russia | $17.0 | $28.7 | -40.6% | 2.9% |
| Germany | $15.4 | $17.5 | -12.1% | 4.8% |
| Italy | $14.0 | $14.8 | -5.5% | 12.6% |
| Norway | $10.1 | $14.8 | -31.8% | -10.5% |
| Other EMEA | $11.5 | $15.8 | -27.1% | -13.2% |
| Asia Pacific | ||||
| Singapore | $32.6 | $33.4 | -2.3% | 8.5% |
| Australia | $28.8 | $32.3 | -10.7% | 13.8% |
| Malaysia | $14.0 | $16.7 | -16.1% | 6.0% |
| New Zealand | $9.4 | $12.7 | -26.4% | -4.7% |
| Other Asia Pacific | $12.7 | $11.5 | 10.4% | 20.9% |
Gross margin by segment
| Q3 2015 | Q3 2014 | |
| Americas Commercial | 15.7% | 14.3% |
| Americas Professional & Technical | 16.9% | 16.3% |
| EMEA Commerical | 13.9% | 14.5% |
| EMEA Professional & Technical | 21.6% | 22.6% |
| APAC Commerical | 12.8% | 12.8% |
| APAC Professional & Technical | 25.4% | 31.5% |
| OCG* | 24.1% | 23.9% |
*Services in Kelly's Outsourcing and Consulting Group (OCG) includes recruitment process outsourcing (RPO), contingent workforce outsourcing (CWO), business process outsourcing (BPO), payroll process outsourcing (PPO), executive placement and outplacement.
Share price and market cap
Kelly Services shares fell 0.49% to $16.28 in early afternoon trading today. The company had a market cap of $616.28 million, according to Yahoo!