FINANCIALS: Kelly Services revenue up but earnings from operations down
6 November 2014
Global staffing agency Kelly Services has announced Q3 revenue of US$1.4bn (£880,000m), a 3.8% increase from the same period last year.
Thu, 6 Nov 2014Global staffing agency Kelly Services has announced Q3 revenue of US$1.4bn (£880,000m), a 3.8% increase from the same period last year.
In contrast, its earnings from operations were down by more than 50% – from $20.2m in 2013 Q3 to $7.1m this quarter. Included in those earnings was a restructuring charge of $4m for 2014 and $500k for 2013.
In a company statement, president and chief executive Carl Camden said 2014 had been “a year of aggressive strategic investments … we are now a leaner, more efficient company”.
The statement said the restructuring charges incurred this year related to US “management simplification”, exiting a staffing business in Sweden, and costs related to closing branches in Australia and consolidating back office functions in Australia and New Zealand.
A report in The Detroit News yesterday (5 November) said the company was moving ahead with restructuring plans to axe 100 jobs, with 55 workers already having been laid off at the company’s Troy, Michigan headquarters.
The report said Kelly Services approved a plan in September to close about 50 branch offices in the US and eliminate several top jobs by the end of the year, according to financial documents filed with the US Securities and Exchange Commission last week.
The Kelly Services statement said unaudited revenue from services showed a small loss in the UK – down to $26.2m in this quarter from $26.5m in last year’s comparative quarter.
The September year-to-date figures, however, show an increased revenue from services in the UK – from $78.1m in 2013 to $82.4m this year.
In contrast, its earnings from operations were down by more than 50% – from $20.2m in 2013 Q3 to $7.1m this quarter. Included in those earnings was a restructuring charge of $4m for 2014 and $500k for 2013.
In a company statement, president and chief executive Carl Camden said 2014 had been “a year of aggressive strategic investments … we are now a leaner, more efficient company”.
The statement said the restructuring charges incurred this year related to US “management simplification”, exiting a staffing business in Sweden, and costs related to closing branches in Australia and consolidating back office functions in Australia and New Zealand.
A report in The Detroit News yesterday (5 November) said the company was moving ahead with restructuring plans to axe 100 jobs, with 55 workers already having been laid off at the company’s Troy, Michigan headquarters.
The report said Kelly Services approved a plan in September to close about 50 branch offices in the US and eliminate several top jobs by the end of the year, according to financial documents filed with the US Securities and Exchange Commission last week.
The Kelly Services statement said unaudited revenue from services showed a small loss in the UK – down to $26.2m in this quarter from $26.5m in last year’s comparative quarter.
The September year-to-date figures, however, show an increased revenue from services in the UK – from $78.1m in 2013 to $82.4m this year.
