Kelly Services Reports 2nd Quarter 2008 Results
Kelly Services Reports 2nd Quarter 2008 Results
July 22, 2008
Financials for web.pdf 92.6 KB
TROY, MI (July 22, 2008) -- Kelly Services, Inc., a world leader in human resources solutions, today announced results for the second quarter of 2008.
Carl T. Camden, President and Chief Executive Officer, announced revenue for the second quarter of 2008 totaled $1.5 billion, a 3% increase compared to the corresponding quarter in 2007.
Earnings from operations for the second quarter of 2008 totaled $15.0 million, a 33% decrease compared to $22.3 million reported for the second quarter of 2007. Included in earnings from operations in the second quarter of 2007 are $2.4 million of restructuring costs related to our UK operations and a $3.8 million benefit related to a temporary change in the French payroll tax law.
Diluted earnings per share from continuing operations in the second quarter of 2008 were $0.30, a decrease of 27% as compared to second quarter 2007 earnings of $0.41 per share. Included in second quarter 2007 diluted earnings is the $0.07 per share cost of the UK restructuring and $0.07 per share benefit related to the temporary change in the French payroll tax law.
Commenting on the results, Camden said “Our second quarter performance reflects the deterioration in economic conditions and the further weakening of the staffing market, particularly in the U.S. These conditions are now beginning to ripple through other parts of the global economy.”
Camden concluded, “Given this economic uncertainty continuing to cloud the outlook for our industry, we have elected not to provide quarterly earnings guidance. We remain focused on building value for our shareholders by executing our strategy to diversify geographically, moving into higher-margin, fee-based business, expanding our professional and technical businesses, and improving operating margins.”
In conjunction with its second quarter earnings release, Kelly Services, Inc. will host a conference call at 9:00 a.m. (ET) on July 22, 2008 to review the results and answer questions. The call may be accessed in one of the following ways:
Via the Telephone:
U.S. 1-800-553-0272
International 1-612-288-0329
The pass code is Kelly Services
Via the Internet:
The call is also available via the internet through the Kelly Services website:
This release contains statements that are forward looking in nature and accordingly, are subject to risks and uncertainties. These factors include: competition, changing market and economic conditions, currency fluctuations, changes in laws and regulations, including tax laws, and other factors discussed in this release and in the company's filings with the Securities and Exchange Commission. Actual results may differ materially from any projections contained herein.
About Kelly Services
Kelly Services, Inc. (NASDAQ: KELYA, KELYB) is a world leader in human resources solutions headquartered in Troy, Michigan, offering temporary staffing services, outsourcing, vendor on-site and full-time placement to clients on a global basis. Kelly provides employment to more than 750,000 employees annually, with skills including office services, accounting, engineering, information technology, law, science, marketing, creative services, light industrial, education, and health care. Revenue in 2007 was $5.7 billion. Visit www.kellyservices.com.
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James Polehna James McIntire
(248) 244-4586 (248) 244-5370