FINANCIALS: Kelly Services shows fall in revenue

Global recruiter Kelly Services has seen revenue decline 5.6% year-on-year, according to results for the third quarter of 2019.

The results reveal Q3 2019 revenue of $1.3bn (£1bn), with revenue including the impact of the January 2019 acquisitions of NextGen and Global Technology Associates, providers of speciality engineering talent to the US telecommunications industry. Excluding the acquisitions, adjusted revenue declined 8.2% in the third quarter, or 7.5% in constant currency.

Earnings from operations for the third quarter of 2019 was $17.1m, compared to the $21.9m in Q3 2018, while diluted loss per share in the third quarter of 2019 was $0.27 compared to earnings per share of $0.84 in the third quarter of 2018. Included in the loss per share in the third quarter of 2019 is the unfavourable impact of $0.70 due to the non-cash after-tax loss on our investment in Persol Holdings common stock compared to a gain of $0.28 in the third quarter of 2018.

President and CEO Peter Quigley pointed to a challenging quarter as newly restructured US branch operations sought to capture high-value growth amid a sluggish manufacturing sector and a tight labour market.

“Despite pressure on the top line, we delivered improvements in GP rate, saw strong performance in our speciality acquisitions, and effectively contained costs. Our forward focus is on balancing the value-and-volume equation in our portfolio; managing expenses to align with revenue; and advancing our speciality talent solutions strategy.”

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