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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): April 22, 2008
| KELLY SERVICES, INC. | ||||
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(Exact name of Registrant as specified in its charter) |
| DELAWARE | 0-1088 | 38-1510762 | ||||||
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(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification Number) |
| 999 WEST BIG BEAVER ROAD, TROY, MICHIGAN 48084 | ||||
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(Address of principal executive offices) |
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| (248) 362-4444 | ||||
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(Registrant’s telephone number, including area code) |
| Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
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Item 7.01. Regulation FD Disclosure
Kelly Services, Inc. (the “Company”) today posted quarterly information for the 2007 and 2006 fiscal years and annual information for the 2002-2007 fiscal years on the Investor Relations page of the Company’s website.
The information has been revised to reflect the realignment of the Company’s operations into seven reporting segments – Americas Commercial, Americas Professional and Technical (Americas PT), Europe, Middle East and Africa Commercial (EMEA Commercial), Europe, Middle East and Africa Professional and Technical (EMEA PT), Asia Pacific Commercial (APAC Commercial), Asia Pacific Professional and Technical (APAC PT) and Outsourcing and Consulting Group (OCG). Additionally, corporate expenses that directly support the operating units have been allocated to the seven segments. The website may be accessed at www.kellyservices.com.
Copies of the schedules are attached as exhibits 99.1 through 99.5 herein.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
99.1 2007 Quarterly Results of Operations
99.2 2006 Quarterly Results of Operations
99.3 2007 Results of Operations by Segment
99.4 2006 Results of Operations by Segment
99.5 2002-2007 Results of Operations
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
| KELLY SERVICES, INC. | ||
| Date: April 22, 2008 |
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| /s/ Michael E. Debs | ||
| Michael E. Debs | ||
| Senior Vice President and | ||
| Interim Chief Financial Officer | ||
| (Principal Financial Officer and | ||
| Principal Accounting Officer) | ||
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EXHIBIT INDEX
| Exhibit No. | Description | |
| 99.1 | 2007 Quarterly Results of Operations | |
| 99.2 | 2006 Quarterly Results of Operations | |
| 99.3 | 2007 Results of Operations by Segment | |
| 99.4 | 2006 Results of Operations by Segment | |
| 99.5 | 2002-2007 Results of Operations | |
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Exhibit 99.1
KELLY SERVICES, INC. AND SUBSIDIARIES
2007 QUARTERLY RESULTS OF OPERATIONS
(In thousands of dollars except per share data)
| First Qtr. | Second Qtr. | Third Qtr. | Fourth Qtr. | Full Year | |||||||||||
| Revenue from services |
$ | 1,350,858 | $ | 1,415,674 | $ | 1,425,298 | $ | 1,475,759 | $ | 5,667,589 | |||||
| Cost of services |
1,121,650 | 1,168,108 | 1,178,419 | 1,210,323 | 4,678,500 | ||||||||||
| Gross profit |
229,208 | 247,566 | 246,879 | 265,436 | 989,089 | ||||||||||
| Selling, general and administrative expenses |
218,715 | 225,300 | 226,099 | 238,895 | 909,009 | ||||||||||
| Earnings from operations |
10,493 | 22,266 | 20,780 | 26,541 | 80,080 | ||||||||||
| Other income, net |
673 | 930 | 587 | 1,021 | 3,211 | ||||||||||
| Earnings from continuing operations before taxes |
11,166 | 23,196 | 21,367 | 27,562 | 83,291 | ||||||||||
| Income taxes |
5,908 | 7,885 | 6,685 | 9,089 | 29,567 | ||||||||||
| Earnings from continuing operations |
5,258 | 15,311 | 14,682 | 18,473 | 53,724 | ||||||||||
| Earnings from discontinued operations, net of tax |
6,657 | 18 | 459 | 158 | 7,292 | ||||||||||
| Net earnings |
$ | 11,915 | $ | 15,329 | $ | 15,141 | $ | 18,631 | $ | 61,016 | |||||
| Basic earnings per share |
|||||||||||||||
| Earnings from continuing operations |
$ | 0.14 | $ | 0.42 | $ | 0.40 | $ | 0.52 | $ | 1.48 | |||||
| Earnings from discontinued operations |
0.18 | — | 0.01 | — | 0.20 | ||||||||||
| Net earnings |
$ | 0.33 | $ | 0.42 | $ | 0.41 | $ | 0.52 | $ | 1.68 | |||||
| Diluted earnings per share |
|||||||||||||||
| Earnings from continuing operations |
$ | 0.14 | $ | 0.41 | $ | 0.40 | $ | 0.52 | $ | 1.47 | |||||
| Earnings from discontinued operations |
0.18 | — | 0.01 | — | 0.20 | ||||||||||
| Net earnings |
$ | 0.32 | $ | 0.41 | $ | 0.41 | $ | 0.52 | $ | 1.67 | |||||
6
Exhibit 99.2
KELLY SERVICES, INC. AND SUBSIDIARIES
2006 QUARTERLY RESULTS OF OPERATIONS
(In thousands of dollars except per share data)
| First Qtr. | Second Qtr. | Third Qtr. | Fourth Qtr. | Full Year | |||||||||||
| Revenue from services |
$ | 1,335,605 | $ | 1,392,886 | $ | 1,396,911 | $ | 1,421,376 | $ | 5,546,778 | |||||
| Cost of services |
1,122,569 | 1,169,538 | 1,166,061 | 1,181,884 | 4,640,052 | ||||||||||
| Gross profit |
213,036 | 223,348 | 230,850 | 239,492 | 906,726 | ||||||||||
| Selling, general and administrative expenses |
200,240 | 203,384 | 207,870 | 217,191 | 828,685 | ||||||||||
| Earnings from operations |
12,796 | 19,964 | 22,980 | 22,301 | 78,041 | ||||||||||
| Other income, net |
40 | 465 | 348 | 618 | 1,471 | ||||||||||
| Earnings from continuing operations before taxes |
12,836 | 20,429 | 23,328 | 22,919 | 79,512 | ||||||||||
| Income taxes |
4,664 | 8,579 | 6,893 | 2,591 | 22,727 | ||||||||||
| Earnings from continuing operations |
8,172 | 11,850 | 16,435 | 20,328 | 56,785 | ||||||||||
| Earnings from discontinued operations, net of tax |
386 | 823 | 1,383 | 4,114 | 6,706 | ||||||||||
| Net earnings |
$ | 8,558 | $ | 12,673 | $ | 17,818 | $ | 24,442 | $ | 63,491 | |||||
| Basic earnings per share |
|||||||||||||||
| Earnings from continuing operations |
$ | 0.23 | $ | 0.33 | $ | 0.46 | $ | 0.56 | $ | 1.58 | |||||
| Earnings from discontinued operations |
0.01 | 0.02 | 0.04 | 0.11 | 0.19 | ||||||||||
| Net earnings |
$ | 0.24 | $ | 0.35 | $ | 0.49 | $ | 0.68 | $ | 1.76 | |||||
| Diluted earnings per share |
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| Earnings from continuing operations |
$ | 0.23 | $ | 0.33 | $ | 0.45 | $ | 0.56 | $ | 1.56 | |||||
| Earnings from discontinued operations |
0.01 | 0.02 | 0.04 | 0.11 | 0.18 | ||||||||||
| Net earnings |
$ | 0.24 | $ | 0.35 | $ | 0.49 | $ | 0.67 | $ | 1.75 | |||||
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Exhibit 99.3
KELLY SERVICES, INC.
2007 RESULTS OF OPERATIONS BY SEGMENT
(In thousands of dollars)
| First Qtr. | Second Qtr. | Third Qtr. | Fourth Qtr. | Full Year | ||||||||||||||||
| Revenue from Services: |
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| Americas Commercial |
$ | 684,051 | $ | 696,974 | $ | 682,534 | $ | 695,839 | $ | 2,759,398 | ||||||||||
| Americas PT |
227,629 | 236,406 | 235,559 | 229,492 | 929,086 | |||||||||||||||
| Total Americas Commercial and PT |
911,680 | 933,380 | 918,093 | 925,331 | 3,688,484 | |||||||||||||||
| EMEA Commercial |
297,439 | 321,229 | 332,933 | 340,805 | 1,292,406 | |||||||||||||||
| EMEA PT |
36,116 | 39,165 | 40,384 | 43,106 | 158,771 | |||||||||||||||
| Total EMEA Commercial and PT |
333,555 | 360,394 | 373,317 | 383,911 | 1,451,177 | |||||||||||||||
| APAC Commercial |
62,799 | 77,888 | 80,598 | 89,300 | 310,585 | |||||||||||||||
| APAC PT |
4,599 | 5,917 | 7,987 | 8,199 | 26,702 | |||||||||||||||
| Total APAC Commercial and PT |
67,398 | 83,805 | 88,585 | 97,499 | 337,287 | |||||||||||||||
| OCG |
38,225 | 38,095 | 45,303 | 69,018 | 190,641 | |||||||||||||||
| Consolidated Total |
$ | 1,350,858 | $ | 1,415,674 | $ | 1,425,298 | $ | 1,475,759 | $ | 5,667,589 | ||||||||||
| Gross Profit Rate: |
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| Americas Commercial |
15.9 | % | 15.7 | % | 15.7 | % | 16.1 | % | 15.9 | % | ||||||||||
| Americas PT |
17.7 | 17.6 | 17.7 | 18.1 | 17.8 | |||||||||||||||
| Total Americas Commercial and PT |
16.3 | 16.2 | 16.2 | 16.6 | 16.4 | |||||||||||||||
| EMEA Commercial |
16.5 | 18.4 | 17.2 | 18.6 | 17.7 | |||||||||||||||
| EMEA PT |
25.7 | 29.0 | 28.8 | 28.9 | 28.2 | |||||||||||||||
| Total EMEA Commercial and PT |
17.5 | 19.6 | 18.5 | 19.8 | 18.9 | |||||||||||||||
| APAC Commercial |
16.9 | 17.4 | 17.3 | 16.8 | 17.1 | |||||||||||||||
| APAC PT |
34.2 | 33.2 | 33.3 | 31.9 | 33.0 | |||||||||||||||
| Total APAC Commercial and PT |
18.1 | 18.5 | 18.7 | 18.1 | 18.3 | |||||||||||||||
| OCG |
25.3 | 27.4 | 26.9 | 26.2 | 26.4 | |||||||||||||||
| Consolidated Total |
17.0 | % | 17.5 | % | 17.3 | % | 18.0 | % | 17.5 | % | ||||||||||
| Expense Rate: |
||||||||||||||||||||
| Americas Commercial |
12.5 | % | 12.1 | % | 12.7 | % | 12.3 | % | 12.4 | % | ||||||||||
| Americas PT |
11.8 | 11.8 | 12.1 | 12.5 | 12.0 | |||||||||||||||
| Total Americas Commercial and PT |
12.3 | 12.0 | 12.5 | 12.4 | 12.3 | |||||||||||||||
| EMEA Commercial |
18.0 | 17.4 | 16.1 | 16.8 | 17.0 | |||||||||||||||
| EMEA PT |
24.9 | 27.9 | 26.2 | 27.6 | 26.7 | |||||||||||||||
| Total EMEA Commercial and PT |
18.7 | 18.5 | 17.2 | 18.0 | 18.1 | |||||||||||||||
| APAC Commercial |
15.8 | 15.4 | 15.8 | 16.9 | 16.0 | |||||||||||||||
| APAC PT |
37.4 | 37.2 | 31.8 | 27.2 | 32.6 | |||||||||||||||
| Total APAC Commercial and PT |
17.3 | 17.0 | 17.3 | 17.8 | 17.3 | |||||||||||||||
| OCG |
24.0 | 25.7 | 22.8 | 19.0 | 22.2 | |||||||||||||||
| Corporate Expense |
1.7 | 1.6 | 1.5 | 1.7 | 1.6 | |||||||||||||||
| Consolidated Total |
16.2 | % | 15.9 | % | 15.9 | % | 16.2 | % | 16.0 | % | ||||||||||
| Earnings (Loss) from Operations: |
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| Americas Commercial |
$ | 23,107 | $ | 25,063 | $ | 20,911 | $ | 26,485 | $ | 95,566 | ||||||||||
| Americas PT |
13,552 | 13,803 | 13,181 | 12,948 | 53,484 | |||||||||||||||
| Total Americas Commercial and PT |
36,659 | 38,866 | 34,092 | 39,433 | 149,050 | |||||||||||||||
| EMEA Commercial |
(4,468 | ) | 3,476 | 3,758 | 6,105 | 8,871 | ||||||||||||||
| EMEA PT |
316 | 433 | 1,080 | 593 | 2,422 | |||||||||||||||
| Total EMEA Commercial and PT |
(4,152 | ) | 3,909 | 4,838 | 6,698 | 11,293 | ||||||||||||||
| APAC Commercial |
676 | 1,498 | 1,174 | (109 | ) | 3,239 | ||||||||||||||
| APAC PT |
(147 | ) | (233 | ) | 115 | 384 | 119 | |||||||||||||
| Total APAC Commercial and PT |
529 | 1,265 | 1,289 | 275 | 3,358 | |||||||||||||||
| OCG |
527 | 649 | 1,872 | 4,985 | 8,033 | |||||||||||||||
| Corporate Expense |
(23,070 | ) | (22,423 | ) | (21,311 | ) | (24,850 | ) | (91,654 | ) | ||||||||||
| Consolidated Total |
$ | 10,493 | $ | 22,266 | $ | 20,780 | $ | 26,541 | $ | 80,080 | ||||||||||
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Exhibit 99.4
KELLY SERVICES, INC.
2006 RESULTS OF OPERATIONS BY SEGMENT
(In thousands of dollars)
| First Qtr. | Second Qtr. | Third Qtr. | Fourth Qtr. | Full Year | ||||||||||||||||
| Revenue from Services: |
||||||||||||||||||||
| Americas Commercial |
$ | 714,465 | $ | 738,734 | $ | 723,762 | $ | 739,118 | $ | 2,916,079 | ||||||||||
| Americas PT |
250,428 | 244,119 | 240,049 | 227,040 | 961,636 | |||||||||||||||
| Total Americas Commercial and PT |
964,893 | 982,853 | 963,811 | 966,158 | 3,877,715 | |||||||||||||||
| EMEA Commercial |
255,520 | 285,070 | 301,836 | 303,030 | 1,145,456 | |||||||||||||||
| EMEA PT |
26,246 | 28,504 | 31,408 | 33,427 | 119,585 | |||||||||||||||
| Total EMEA Commercial and PT |
281,766 | 313,574 | 333,244 | 336,457 | 1,265,041 | |||||||||||||||
| APAC Commercial |
53,101 | 57,695 | 60,300 | 61,772 | 232,868 | |||||||||||||||
| APAC PT |
3,871 | 4,275 | 4,156 | 4,057 | 16,359 | |||||||||||||||
| Total APAC Commercial and PT |
56,972 | 61,970 | 64,456 | 65,829 | 249,227 | |||||||||||||||
| OCG |
31,974 | 34,489 | 35,400 | 52,932 | 154,795 | |||||||||||||||
| Consolidated Total |
$ | 1,335,605 | $ | 1,392,886 | $ | 1,396,911 | $ | 1,421,376 | $ | 5,546,778 | ||||||||||
| Gross Profit Rate: |
||||||||||||||||||||
| Americas Commercial |
14.9 | % | 15.1 | % | 15.4 | % | 15.9 | % | 15.4 | % | ||||||||||
| Americas PT |
15.3 | 15.3 | 16.0 | 16.8 | 15.8 | |||||||||||||||
| Total Americas Commercial and PT |
15.0 | 15.2 | 15.6 | 16.1 | 15.5 | |||||||||||||||
| EMEA Commercial |
16.7 | 16.5 | 16.8 | 16.6 | 16.6 | |||||||||||||||
| EMEA PT |
24.3 | 24.1 | 24.4 | 25.2 | 24.5 | |||||||||||||||
| Total EMEA Commercial and PT |
17.4 | 17.2 | 17.5 | 17.5 | 17.4 | |||||||||||||||
| APAC Commercial |
17.5 | 18.7 | 18.5 | 18.9 | 18.4 | |||||||||||||||
| APAC PT |
31.8 | 32.6 | 32.3 | 32.2 | 32.3 | |||||||||||||||
| Total APAC Commercial and PT |
18.5 | 19.7 | 19.4 | 19.7 | 19.3 | |||||||||||||||
| 26.4 | 23.5 | 27.8 | 23.0 | 24.9 | ||||||||||||||||
| Consolidated Total |
16.0 | % | 16.0 | % | 16.5 | % | 16.8 | % | 16.3 | % | ||||||||||
| Expense Rate: |
||||||||||||||||||||
| Americas Commercial |
11.7 | % | 11.3 | % | 11.6 | % | 11.6 | % | 11.5 | % | ||||||||||
| Americas PT |
10.2 | 10.3 | 10.3 | 11.3 | 10.5 | |||||||||||||||
| Total Americas Commercial and PT |
11.3 | 11.0 | 11.3 | 11.5 | 11.3 | |||||||||||||||
| EMEA Commercial |
17.6 | 16.9 | 15.9 | 16.8 | 16.8 | |||||||||||||||
| EMEA PT |
24.0 | 24.4 | 23.3 | 24.1 | 23.9 | |||||||||||||||
| Total EMEA Commercial and PT |
18.2 | 17.6 | 16.6 | 17.5 | 17.5 | |||||||||||||||
| APAC Commercial |
16.5 | 16.8 | 16.5 | 16.7 | 16.6 | |||||||||||||||
| APAC PT |
30.2 | 31.4 | 33.0 | 35.1 | 32.4 | |||||||||||||||
| Total APAC Commercial and PT |
17.5 | 17.8 | 17.6 | 17.8 | 17.7 | |||||||||||||||
| OCG |
18.8 | 18.7 | 22.8 | 17.1 | 19.1 | |||||||||||||||
| Corporate Expense |
1.8 | 1.6 | 1.8 | 1.8 | 1.7 | |||||||||||||||
| Consolidated Total |
15.0 | % | 14.6 | % | 14.9 | % | 15.3 | % | 14.9 | % | ||||||||||
| Earnings (Loss) from Operations: |
||||||||||||||||||||
| Americas Commercial |
$ | 23,295 | $ | 28,567 | $ | 27,964 | $ | 31,720 | $ | 111,546 | ||||||||||
| Americas PT |
12,789 | 12,305 | 13,690 | 12,396 | 51,180 | |||||||||||||||
| Total Americas Commercial and PT |
36,084 | 40,872 | 41,654 | 44,116 | 162,726 | |||||||||||||||
| EMEA Commercial |
(2,517 | ) | (1,224 | ) | 2,511 | (552 | ) | (1,782 | ) | |||||||||||
| EMEA PT |
55 | (59 | ) | 350 | 346 | 692 | ||||||||||||||
| Total EMEA Commercial and PT |
(2,462 | ) | (1,283 | ) | 2,861 | (206 | ) | (1,090 | ) | |||||||||||
| APAC Commercial |
540 | 1,083 | 1,177 | 1,369 | 4,169 | |||||||||||||||
| APAC PT |
61 | 54 | (28 | ) | (116 | ) | (29 | ) | ||||||||||||
| Total APAC Commercial and PT |
601 | 1,137 | 1,149 | 1,253 | 4,140 | |||||||||||||||
| OCG |
2,415 | 1,658 | 1,767 | 3,103 | 8,943 | |||||||||||||||
| Corporate Expense |
(23,842 | ) | (22,420 | ) | (24,451 | ) | (25,965 | ) | (96,678 | ) | ||||||||||
| Consolidated Total |
$ | 12,796 | $ | 19,964 | $ | 22,980 | $ | 22,301 | $ | 78,041 | ||||||||||
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Exhibit 99.5
KELLY SERVICES, INC. AND SUBSIDIARIES
2002-2007 RESULTS OF OPERATIONS
(In thousands of dollars except per share data)
| 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | ||||||||||||||||
| Revenue from services |
$ | 3,913,070 | $ | 4,199,173 | $ | 4,863,410 | $ | 5,186,358 | $ | 5,546,778 | $ | 5,667,589 | |||||||||
| Cost of services |
3,252,403 | 3,534,361 | 4,093,092 | 4,356,349 | 4,640,052 | 4,678,500 | |||||||||||||||
| Gross profit |
660,667 | 664,812 | 770,318 | 830,009 | 906,726 | 989,089 | |||||||||||||||
| Selling, general and administrative expenses |
632,966 | 659,654 | 735,117 | 776,256 | 828,685 | 909,009 | |||||||||||||||
| Earnings from operations |
27,701 | 5,158 | 35,201 | 53,753 | 78,041 | 80,080 | |||||||||||||||
| Other income (expense), net |
362 | (77 | ) | (861 | ) | (187 | ) | 1,471 | 3,211 | ||||||||||||
| Earnings from continuing operations before taxes |
28,063 | 5,081 | 34,340 | 53,566 | 79,512 | 83,291 | |||||||||||||||
| Income taxes |
11,022 | 2,218 | 12,133 | 15,867 | 22,727 | 29,567 | |||||||||||||||
| Earnings from continuing operations |
17,041 | 2,863 | 22,207 | 37,699 | 56,785 | 53,724 | |||||||||||||||
| Earnings (loss) from discontinued operations, net of tax |
1,437 | 2,041 | (996 | ) | 1,564 | 6,706 | 7,292 | ||||||||||||||
| Net earnings |
$ | 18,478 | $ | 4,904 | $ | 21,211 | $ | 39,263 | $ | 63,491 | $ | 61,016 | |||||||||
| Basic earnings per share |
|||||||||||||||||||||
| Earnings from continuing operations |
$ | 0.48 | $ | 0.08 | $ | 0.63 | $ | 1.06 | $ | 1.58 | $ | 1.48 | |||||||||
| Earnings from discontinued operations |
0.04 | 0.06 | (0.03 | ) | 0.04 | 0.19 | 0.20 | ||||||||||||||
| Net earnings |
$ | 0.52 | $ | 0.14 | $ | 0.60 | $ | 1.10 | $ | 1.76 | $ | 1.68 | |||||||||
| Diluted earnings per share |
|||||||||||||||||||||
| Earnings from continuing operations |
$ | 0.47 | $ | 0.08 | $ | 0.63 | $ | 1.05 | $ | 1.56 | $ | 1.47 | |||||||||
| Earnings from discontinued operations |
0.04 | 0.06 | (0.03 | ) | 0.04 | 0.18 | 0.20 | ||||||||||||||
| Net earnings |
$ | 0.51 | $ | 0.14 | $ | 0.60 | $ | 1.09 | $ | 1.75 | $ | 1.67 | |||||||||