SOURCE: Kelly Services, Inc.

Kelly Services, Inc.

November 06, 2009 07:30 ET

Kelly Services Reports 3rd Quarter 2009 Results

TROY, MI--(Marketwire - November 6, 2009) - Kelly Services, Inc. (NASDAQ: KELYA) (NASDAQ: KELYB), a world leader in workforce management services and human resources solutions, today announced results for the third quarter of 2009.

Carl T. Camden, President and Chief Executive Officer, announced revenue for the third quarter of 2009 totaled $1.0 billion, a 25% decrease compared to the corresponding quarter in 2008. On a constant currency basis, revenue decreased by 22%.

Losses from operations for the third quarter of 2009 totaled $28.0 million, compared to losses from operations of $14.5 million reported for the third quarter of 2008. Included in the results from operations are legal charges of $4.3 million in the third quarter of 2009 and $22.5 million in the third quarter of 2008.

Diluted losses per share from continuing operations in the third quarter of 2009 were $0.43 compared to third quarter 2008 losses of $0.33 per share. The legal charges totaled $0.08 per share in the third quarter of 2009 and $0.40 per share in the third quarter of 2008.

Commenting on the third quarter results, Camden was cautiously optimistic. "We are seeing signs that the global economy is picking up steam and job losses are stabilizing," he said. "In the past few months, trends have shown modest improvement, and we're particularly encouraged by the steady, sequential nature of that upturn."

Camden added that job creation may lag for a while. "Employers are understandably concerned about the sustainability of this recovery and likely will be guarded about expanding their workforce.

"In the meantime, Kelly has done an excellent job of streamlining, managing costs, maintaining a strong balance sheet, and serving our customers. Today, we're a more agile and focused company. We believe we're in a very good position to grow with this economy."

In conjunction with its third quarter earnings release, Kelly Services, Inc. will host a conference call at 9:00 a.m. (ET) on November 6, to review the results and answer questions. The call may be accessed in one of the following ways:

Via the Telephone:

U.S.                1 800 288-9626
International       1 612 234-9959

The pass code is Kelly Services

Via the Internet:

The call is also available via the internet through the Kelly Services website: www.kellyservices.com

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 forward-looking statements contained herein.

About Kelly Services

Kelly Services, Inc. (NASDAQ: KELYA) (NASDAQ: KELYB) is a world leader in workforce management services and human resources solutions. Kelly offers a comprehensive array of temporary staffing, permanent placement, outsourcing, and consulting services. Kelly serves clients around the globe and provides employment to 650,000 employees annually. Revenue in 2008 was $5.5 billion. Visit www.kellyservices.com.

                  KELLY SERVICES, INC. AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF EARNINGS
     FOR THE 13 WEEKS ENDED SEPTEMBER 27, 2009 AND SEPTEMBER 28, 2008
                                (UNAUDITED)
              (In millions of dollars except per share data)

                                                                      %
                                   2009      2008    Change        Change
                                 --------  --------  -------       ------

Revenue from services            $1,049.2  $1,397.8  $(348.6)       (24.9)%

Cost of services                    883.0   1,152.1   (269.1)       (23.3)
                                 --------  --------  -------       ------

Gross profit                        166.2     245.7    (79.5)       (32.4)

Selling, general and
 administrative expenses            193.7     260.2    (66.5)       (25.6)
Asset impairments                     0.5         -      0.5           NM
                                 --------  --------  -------       ------

Loss from operations                (28.0)    (14.5)   (13.5)       (92.6)

Other expense, net                   (1.6)     (0.1)    (1.5)          NM
                                 --------  --------  -------       ------

Loss from continuing
 operations before taxes            (29.6)    (14.6)   (15.0)      (102.2)

Income taxes                        (14.8)     (3.1)   (11.7)      (375.4)
                                 --------  --------  -------       ------

Loss from continuing
 operations                         (14.8)    (11.5)    (3.3)       (28.6)

Loss from discontinued
 operations, net of tax                 -      (0.7)     0.7        100.0
                                 --------  --------  -------       ------

Net loss                         $  (14.8) $  (12.2) $  (2.6)       (21.6)%
                                 ========  ========  =======       ======

Basic loss per share on
 common stock
  Loss from continuing
   operations                    $  (0.43) $  (0.33) $ (0.10)       (30.3)%
  Loss from discontinued
   operations                           -     (0.02)    0.02        100.0
  Net loss                          (0.43)    (0.35)   (0.08)       (22.9)

Diluted loss per share on
 common stock
  Loss from continuing
   operations                    $  (0.43) $  (0.33) $ (0.10)       (30.3)%
  Loss from discontinued
   operations                           -     (0.02)    0.02        100.0
  Net loss                          (0.43)    (0.35)   (0.08)       (22.9)

                                 --------  --------  -------       ------

STATISTICS:

Gross profit rate                    15.8%     17.6%    (1.8) pts.

Selling, general and
 administrative expenses:
  % of revenue                       18.5      18.6     (0.1)
  % of gross profit                 116.5     105.9     10.6

% Return - Loss from operations      (2.7)     (1.0)    (1.7)
    Loss from continuing
     operations before taxes         (2.8)     (1.0)    (1.8)
    Loss from continuing
     operations                      (1.4)     (0.8)    (0.6)
    Net loss                         (1.4)     (0.9)    (0.5)

Effective income tax rate            49.9%     21.2%    28.7  pts.





                  KELLY SERVICES, INC. AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF EARNINGS
     FOR THE 39 WEEKS ENDED SEPTEMBER 27, 2009 AND SEPTEMBER 28, 2008
                                (UNAUDITED)
              (In millions of dollars except per share data)

                                                                      %
                                2009      2008      Change         Change
                              --------  --------  ---------        ------

Revenue from services         $3,120.7  $4,238.2  $(1,117.5)        (26.4)%

Cost of services               2,607.3   3,485.2     (877.9)        (25.2)
                              --------  --------  ---------        ------

Gross profit                     513.4     753.0     (239.6)        (31.8)

Selling, general and
 administrative expenses         593.4     739.6     (146.2)        (19.8)
Asset impairments                 53.1         -       53.1            NM
                              --------  --------  ---------        ------

(Loss) earnings from
 operations                     (133.1)     13.4     (146.5)           NM

Other expense, net                (1.3)        -       (1.3)           NM
                              --------  --------  ---------        ------

(Loss) earnings from
 continuing operations before
 taxes                          (134.4)     13.4     (147.8)           NM

Income taxes                     (37.5)      6.5      (44.0)           NM
                              --------  --------  ---------        ------

(Loss) earnings from
 continuing operations           (96.9)      6.9     (103.8)           NM

Earnings (loss) from
 discontinued operations, net
 of tax                            0.6      (0.4)       1.0         273.7
                              --------  --------  ---------        ------

Net (loss) earnings           $  (96.3) $    6.5  $  (102.8)           NM%
                              ========  ========  =========        ======

Basic (loss) earnings per
 share on common stock
  (Loss) earnings from
   continuing operations      $  (2.78) $   0.19  $   (2.97)           NM%
  Earnings (loss) from
   discontinued operations        0.02     (0.01)      0.03         300.0
  Net (loss) earnings            (2.76)     0.19      (2.95)           NM

Diluted (loss) earnings per
 share on common stock
  (Loss) earnings from
   continuing operations      $  (2.78) $   0.19  $   (2.97)           NM%
  Earnings (loss) from
   discontinued operations        0.02     (0.01)      0.03         300.0
  Net (loss) earnings            (2.76)     0.19      (2.95)           NM

                              --------  --------  ---------        ------

STATISTICS:

Gross profit rate                 16.5%     17.8%      (1.3) pts.

Selling, general and
 administrative expenses:
  % of revenue                    19.0      17.5        1.5
  % of gross profit              115.6      98.2       17.4

% Return - (Loss) earnings
 from operations                  (4.3)      0.3       (4.6)
    (Loss) earnings from
     continuing operations
     before taxes                 (4.3)      0.3       (4.6)
    (Loss) earnings from
     continuing operations        (3.1)      0.2       (3.3)
    Net (loss) earnings           (3.1)      0.2       (3.3)

Effective income tax rate         27.9%     48.5%     (20.6) pts.





                  KELLY SERVICES, INC. AND SUBSIDIARIES
                     RESULTS OF OPERATIONS BY SEGMENT
                                (UNAUDITED)
                         (In millions of dollars)


                                              Third Quarter
                              -------------------------------------------
                                                                Constant
                                                                Currency
                               2009    2008     Change           Change
                              ------  ------  ----------       ----------
Americas Commercial
  Revenue from services
   (including fee-based
   income)                    $467.5  $621.6       (24.8)%          (23.6)%
  Fee-based income               1.7     4.3       (60.3)           (59.3)
  Gross profit                  67.2    95.2       (29.4)           (28.4)
  SG&A expenses                 67.8    83.3       (18.7)           (17.7)
  Earnings from operations      (0.6)   11.9      (104.8)

  Gross profit rate             14.4%   15.3%       (0.9) pts.
  Expense rates:
    % of revenue                14.5    13.4         1.1
    % of gross profit          100.8    87.6        13.2
  Operating margin              (0.1)    1.9        (2.0)

Americas PT
  Revenue from services
   (including fee-based
   income)                    $192.1  $234.8       (18.2)%          (18.1)%
  Fee-based income               2.1     5.0       (57.3)           (57.2)
  Gross profit                  29.5    39.1       (24.5)           (24.4)
  SG&A expenses                 24.6    28.9       (14.6)           (14.5)
  Earnings from operations       4.9    10.2       (52.7)

  Gross profit rate             15.4%   16.6%       (1.2) pts.
  Expense rates:
    % of revenue                12.9    12.3         0.6
    % of gross profit           83.7    74.0         9.7
  Operating margin               2.5     4.3        (1.8)

EMEA Commercial
  Revenue from services
   (including fee-based
   income)                    $228.0  $353.6       (35.5)%          (29.5)%
  Fee-based income               3.7    10.2       (64.5)           (60.1)
  Gross profit                  33.9    63.0       (46.2)           (41.4)
  SG&A expenses                 39.5    59.0       (33.2)           (27.8)
  Earnings from operations      (5.6)    4.0      (237.9)

  Gross profit rate             14.9%   17.8%       (2.9) pts.
  Expense rates:
    % of revenue                17.3    16.7         0.6
    % of gross profit          116.3    93.6        22.7
  Operating margin              (2.4)    1.1        (3.5)

EMEA PT
  Revenue from services
   (including fee-based
   income)                    $ 36.4  $ 44.0        (17.3)%         (10.7)%
  Fee-based income               3.9     6.7        (40.5)          (33.6)
  Gross profit                   9.8    12.9        (23.8)          (16.9)
  SG&A expenses                  9.9    12.5        (20.2)          (13.1)
  Earnings from operations      (0.1)    0.4       (131.7)

  Gross profit rate             27.0%   29.3%        (2.3) pts.
  Expense rates:
    % of revenue                27.3    28.3         (1.0)
    % of gross profit          101.3    96.8          4.5
  Operating margin              (0.4)    0.9         (1.3)





                  KELLY SERVICES, INC. AND SUBSIDIARIES
               RESULTS OF OPERATIONS BY SEGMENT (continued)
                                (UNAUDITED)
                         (In millions of dollars)

                                         Third Quarter
                           ----------------------------------------------
                                                                 Constant
                                                                 Currency
                             2009     2008     Change             Change
                           -------  -------  ---------           --------
APAC Commercial
  Revenue from services
   (including fee-based
   income)                 $  71.2  $  84.9      (16.2)%            (12.0)%
  Fee-based income             2.3      4.5      (48.4)             (46.5)
  Gross profit                10.3     14.7      (29.6)             (26.4)
  SG&A expenses               11.5     14.5      (20.8)             (17.6)
  Earnings from operations    (1.2)     0.2         NM

  Gross profit rate           14.5%    17.3%      (2.8) pts.
  Expense rates:
    % of revenue              16.1     17.1       (1.0)
    % of gross profit        111.1     98.7       12.4
  Operating margin            (1.6)     0.2       (1.8)

APAC PT
  Revenue from services
   (including fee-based
   income)                 $   6.5  $   9.2      (29.7)%            (28.0)%
  Fee-based income             1.0      1.5      (32.7)             (30.1)
  Gross profit                 2.0      2.8      (31.6)             (29.7)
  SG&A expenses                2.3      2.7      (14.7)             (10.6)
  Earnings from operations    (0.3)     0.1     (347.6)

  Gross profit rate           30.3%    31.2%      (0.9) pts.
  Expense rates:
    % of revenue              35.9     29.6        6.3
    % of gross profit        118.4     94.9       23.5
  Operating margin            (5.6)     1.6       (7.2)

OCG
  Revenue from services
   (including fee-based
   income)                 $  52.9  $  55.9       (5.4)%             (4.4)%
  Fee-based income             5.8      7.4      (21.7)             (19.4)
  Gross profit                13.7     18.3      (24.7)             (23.1)
  SG&A expenses               17.4     18.4       (5.2)              (3.3)
  Earnings from operations    (3.7)    (0.1)        NM

  Gross profit rate           26.1%    32.8%      (6.7) pts.
  Expense rates:
    % of revenue              33.0     32.9        0.1
    % of gross profit        126.6    100.5       26.1
  Operating margin            (6.9)    (0.2)      (6.7)

Corporate Expense          $ (20.9) $ (41.2)      49.3%





                  KELLY SERVICES, INC. AND SUBSIDIARIES
                     RESULTS OF OPERATIONS BY SEGMENT
                                (UNAUDITED)
                         (In millions of dollars)

                                                                 Constant
                                                                 Currency
                              2009      2008      Change          Change
                            --------  --------  ---------        --------
Americas Commercial
  Revenue from services
   (including fee-based
   income)                  $1,422.9  $1,921.1      (25.9)%         (24.3)%
  Fee-based income               5.1      12.9      (60.9)          (58.7)
  Gross profit                 210.9     302.6      (30.3)          (28.9)
  SG&A expenses                209.0     248.8      (16.0)          (14.4)
  Earnings from operations       1.9      53.8      (96.4)

  Gross profit rate             14.8%     15.8%      (1.0) pts.
  Expense rates:
    % of revenue                14.7      13.0        1.7
    % of gross profit           99.1      82.2       16.9
  Operating margin               0.1       2.8       (2.7)

Americas PT
  Revenue from services
   (including fee-based
   income)                  $  584.3  $  718.9      (18.7)%         (18.6)%
  Fee-based income               7.2      15.7      (54.2)          (54.1)
  Gross profit                  93.2     124.2      (25.0)          (24.8)
  SG&A expenses                 76.4      85.5      (10.6)          (10.3)
  Earnings from operations      16.8      38.7      (56.7)

  Gross profit rate             15.9%     17.3%      (1.4) pts.
  Expense rates:
    % of revenue                13.1      11.9        1.2
    % of gross profit           82.0      68.9       13.1
  Operating margin               2.9       5.4       (2.5)

EMEA Commercial
  Revenue from services
   (including fee-based
   income)                  $  656.3  $1,027.2      (36.1)%         (25.5)%
  Fee-based income              12.3      32.0      (61.6)          (54.3)
  Gross profit                 102.8     179.7      (42.8)          (33.6)
  SG&A expenses                125.8     176.0      (28.5)          (18.1)
  Earnings from operations     (23.0)      3.7         NM

  Gross profit rate             15.7%     17.5%      (1.8) pts.
  Expense rates:
    % of revenue                19.2      17.1        2.1
    % of gross profit          122.4      97.9       24.5
  Operating margin              (3.5)      0.4       (3.9)

EMEA PT
  Revenue from services
   (including fee-based
   income)                  $  102.3  $  134.1      (23.7)%         (12.1)%
  Fee-based income              12.1      21.3      (42.9)          (32.1)
  Gross profit                  28.0      40.0      (30.0)          (18.7)
  SG&A expenses                 30.0      37.2      (19.2)           (5.8)
  Earnings from operations      (2.0)      2.8     (172.0)

  Gross profit rate             27.4%     29.8%      (2.4) pts.
  Expense rates:
    % of revenue                29.4      27.7        1.7
    % of gross profit          107.2      93.0       14.2
  Operating margin              (2.0)      2.1       (4.1)




                  KELLY SERVICES, INC. AND SUBSIDIARIES
               RESULTS OF OPERATIONS BY SEGMENT (continued)
                                (UNAUDITED)
                         (In millions of dollars)

                                      September Year to Date
                        -------------------------------------------------
                                                                 Constant
                                                                 Currency
                            2009         2008       Change       Change
                        -----------  -----------  ----------   ----------
APAC Commercial
  Revenue from services
   (including fee-based
   income)              $     201.9  $     262.5       (23.1)%      (13.4)%
  Fee-based income              6.8         14.0       (51.0)       (46.1)
  Gross profit                 29.5         44.9       (34.5)       (26.3)
  SG&A expenses                33.2         44.2       (25.0)       (16.3)
  Earnings from
   operations                  (3.7)         0.7          NM

  Gross profit rate            14.6%        17.1%       (2.5) pts.
  Expense rates:
    % of revenue               16.4         16.8        (0.4)
    % of gross profit         112.5         98.3        14.2
  Operating margin             (1.8)         0.3        (2.1)

APAC PT
  Revenue from services
   (including fee-based
   income)              $      18.2  $      27.1       (32.8)%      (26.5)%
  Fee-based income              2.8          4.3       (34.6)       (27.8)
  Gross profit                  5.6          8.3       (32.6)       (26.2)
  SG&A expenses                 6.6          8.5       (22.7)       (13.0)
  Earnings from
   operations                  (1.0)        (0.2)     (362.0)

  Gross profit rate            30.8%        30.7%        0.1  pts.
  Expense rates:
    % of revenue               36.3         31.5         4.8
    % of gross profit         117.8        102.6        15.2
  Operating margin             (5.5)        (0.8)       (4.7)

OCG
  Revenue from services
   (including fee-based
   income)              $     151.7  $     164.9        (8.0)%       (6.1)%
  Fee-based income             18.4         20.6       (10.9)        (5.8)
  Gross profit                 44.2         54.0       (18.0)       (14.9)
  SG&A expenses                52.3         51.6         1.3          5.4
  Earnings from
   operations                  (8.1)         2.4      (452.5)

  Gross profit rate            29.2%        32.7%       (3.5) pts.
  Expense rates:
    % of revenue               34.5         31.3         3.2
    % of gross profit         118.3         95.8        22.5
  Operating margin             (5.3)         1.4        (6.7)

Corporate Expense       $     (60.9) $     (88.5)       31.2%




                  KELLY SERVICES, INC. AND SUBSIDIARIES
                        CONSOLIDATED BALANCE SHEETS
                                (UNAUDITED)
                         (In millions of dollars)


                                      September     December    September
                                         27,          28,          28,
                                        2009         2008         2008
                                     -----------  -----------  -----------
Current Assets
  Cash and equivalents               $      91.0  $     118.3  $     113.6
  Trade accounts receivable, less
   allowances of
   $15.7, $17.0 and $18.6,
   respectively                            707.3        815.8        913.7
  Prepaid expenses and other current
   assets                                   54.3         62.0         59.7
  Deferred taxes                            25.7         31.9         30.2
                                     -----------  -----------  -----------
        Total current assets               878.3      1,028.0      1,117.2

Property and Equipment, Net                132.5        151.3        168.3

Noncurrent Deferred Taxes                   66.0         40.0         48.6

Goodwill, Net                               67.3        117.8        161.4

Other Assets                               134.6        120.2        134.2

                                     -----------  -----------  -----------
Total Assets                         $   1,278.7  $   1,457.3  $   1,629.7
                                     ===========  ===========  ===========

Current Liabilities
  Short-term borrowings and current
   portion of
   long-term debt                    $      15.3  $      35.2  $      63.3
  Accounts payable and accrued
   liabilities                             201.9        244.1        242.1
  Accrued payroll and related taxes        229.6        243.2        282.0
  Accrued insurance                         25.0         26.3         23.3
  Income and other taxes                    29.8         51.8         62.4
                                     -----------  -----------  -----------
        Total current liabilities          501.6        600.6        673.1

Noncurrent Liabilities
  Long-term debt                            66.0         80.0         51.2
  Accrued insurance                         43.9         46.9         59.5
  Accrued retirement benefits               74.0         61.6         70.2
  Other long-term liabilities               14.2         15.3         17.0
                                     -----------  -----------  -----------
        Total noncurrent
         liabilities                       198.1        203.8        197.9

Stockholders' Equity
  Common stock                              40.1         40.1         40.1
  Treasury stock                          (107.6)      (111.2)      (111.3)
  Paid-in capital                           35.9         35.8         34.5
  Earnings invested in the business        579.7        676.0        769.6
  Accumulated other comprehensive
   income                                   30.9         12.2         25.8
                                     -----------  -----------  -----------
        Total stockholders'
         equity                            579.0        652.9        758.7
                                     -----------  -----------  -----------

Total Liabilities and Stockholders'
 Equity                              $   1,278.7  $   1,457.3  $   1,629.7
                                     ===========  ===========  ===========

                                     -----------  -----------  -----------

STATISTICS:
 Working Capital                     $     376.7  $     427.4  $     444.1
 Current Ratio                               1.8          1.7          1.7
 Debt-to-capital %                          12.3%        15.0%        13.1%
 Global Days Sales Outstanding                52           50           51




                  KELLY SERVICES, INC. AND SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF CASH FLOWS
     FOR THE 39 WEEKS ENDED SEPTEMBER 27, 2009 AND SEPTEMBER 28, 2008
                                (UNAUDITED)
                         (In millions of dollars)




                                                        2009       2008
                                                      ---------  ---------

Cash flows from operating activities
  Net (loss) earnings                                 $   (96.3) $     6.5
  Noncash adjustments:
    Impairment of assets                                   53.1          -
    Depreciation and amortization                          30.9       34.1
    Provision for bad debts                                 2.7        4.8
    Stock-based compensation                                3.6        3.0
    Other, net                                             (4.0)       1.8
  Changes in operating assets and liabilities              50.7       36.2
                                                      ---------  ---------

        Net cash from operating activities                 40.7       86.4
                                                      ---------  ---------

Cash flows from investing activities
  Capital expenditures                                     (7.9)     (23.5)
  Acquisition of companies, net of cash received           (7.5)     (32.4)
  Other investing activities                               (2.9)      (0.4)

        Net cash from investing activities                (18.3)     (56.3)
                                                      ---------  ---------

Cash flows from financing activities
  Net change in revolving line of credit                  (11.9)      12.5
  Repayment of debt                                       (22.9)         -
  Dividend payments                                           -      (14.2)
  Purchase of treasury stock                                  -       (8.0)
  Other financing activities                              (18.5)       1.1
                                                      ---------  ---------

        Net cash from financing activities                (53.3)      (8.6)
                                                      ---------  ---------

Effect of exchange rates on cash and equivalents            3.6       (0.7)
                                                      ---------  ---------

Net change in cash and equivalents                        (27.3)      20.8
Cash and equivalents at beginning of period               118.3       92.8
                                                      ---------  ---------


Cash and equivalents at end of period                 $    91.0  $   113.6
                                                      =========  =========



                  KELLY SERVICES, INC. AND SUBSIDIARIES
                          REVENUE FROM SERVICES
                                (UNAUDITED)
                         (In millions of dollars)


                                 Third Quarter (Commercial, PT and OCG)
                                -----------------------------------------
                                                          % Change
                                                                 Constant
                                  2009       2008        US$     Currency
                                ---------- ---------- --------   --------

Americas
  United States                 $    623.1 $    795.8    (21.7)%    (21.7)%
  Canada                              48.4       62.1    (22.1)     (17.7)
  Mexico                              16.7       20.8    (19.9)       3.0
  Puerto Rico                         12.6       19.3    (34.5)     (34.5)
                                ---------- ----------
Total Americas                       700.8      898.0    (22.0)     (21.1)

EMEA
  France                              69.4       93.7    (25.9)     (21.6)
  United Kingdom                      50.8      102.5    (50.5)     (42.7)
  Switzerland                         38.8       49.0    (21.0)     (21.3)
  Italy                               17.4       33.9    (48.6)     (45.7)
  Germany                             16.6       21.1    (21.7)     (17.3)
  Russia                              16.5       25.4    (34.9)     (16.0)
  Norway                              16.2       24.9    (34.8)     (23.3)
  Portugal                            15.8       11.9     33.3       40.3
  Other                               26.9       40.4    (33.3)     (27.9)
                                ---------- ----------
Total EMEA                           268.4      402.8    (33.4)     (27.3)

APAC
  Australia                           25.0       33.9    (26.2)     (20.8)
  Singapore                           16.4       18.7    (11.9)      (9.2)
  Malaysia                            12.3       13.4     (8.9)      (4.0)
  Other                               26.3       31.0    (15.3)     (12.5)
                                ---------- ----------
Total APAC                            80.0       97.0    (17.5)     (13.6)

Total Kelly Services, Inc.      $  1,049.2 $  1,397.8    (24.9)%    (22.4)%
                                ========== ==========



                  KELLY SERVICES, INC. AND SUBSIDIARIES
                          REVENUE FROM SERVICES
                                (UNAUDITED)
                         (In millions of dollars)


                                        September Year to Date
                                       (Commercial, PT and OCG)
                                -----------------------------------------
                                                           % Change
                                                                 Constant
                                  2009       2008        US$     Currency
                                ---------- ---------- --------   --------

Americas
  United States                 $  1,901.2 $  2,455.6    (22.6)%    (22.6)%
  Canada                             131.9      187.6    (29.7)     (19.5)
  Mexico                              47.5       58.1    (18.3)       6.0
  Puerto Rico                         42.9       58.7    (27.0)     (27.0)
                                ---------- ----------
Total Americas                     2,123.5    2,760.0    (23.1)     (21.9)

EMEA
  France                             194.0      275.7    (29.6)     (21.6)
  United Kingdom                     163.6      317.3    (48.4)     (34.2)
  Switzerland                         99.8      143.5    (30.5)     (27.4)
  Italy                               53.9      106.7    (49.4)     (43.5)
  Germany                             47.5       65.3    (27.3)     (19.0)
  Russia                              45.5       68.6    (33.7)     (10.7)
  Norway                              44.4       69.2    (35.8)     (20.1)
  Portugal                            40.1       11.9    237.7      274.2
  Other                               82.2      121.7    (32.5)     (22.7)
                                ---------- ----------
Total EMEA                           771.0    1,179.9    (34.7)     (23.9)

APAC
  Australia                           67.9      107.7    (36.9)     (23.2)
  Singapore                           46.5       55.2    (15.6)     (10.7)
  Malaysia                            36.4       42.9    (15.3)      (7.4)
  Other                               75.4       92.5    (18.5)     (10.7)
                                ---------- ----------
Total APAC                           226.2      298.3    (24.1)     (14.7)

Total Kelly Services, Inc.      $  3,120.7 $  4,238.2    (26.4)%    (21.9)%
                                ========== ==========

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