Kelly Services(R) Reports 2nd Quarter 2012 Results

TROY, MI--(Marketwire - Aug 8, 2012) - Kelly Services, Inc. (NASDAQ: KELYA) (NASDAQ: KELYB), a leader in providing workforce solutions, today announced results for the second quarter of 2012.

Carl T. Camden, President and Chief Executive Officer, announced revenue for the second quarter of 2012 totaled $1.4 billion, a 3% decrease compared to the corresponding quarter of 2011.

Earnings from operations for the second quarter of 2012 totaled $23.8 million, compared to $21.3 million reported for the second quarter of 2011. Included in the results from operations for the second quarter of 2012 is a benefit due to changes in the estimated cost of restructuring of $2.2 million. The results from operations in the second quarter of 2011 also included a benefit due to changes in the estimated cost of restructuring of $0.6 million. Excluding the adjustments to restructuring charges, earnings from operations were $21.6 million in the second quarter of 2012 compared to $20.7 million in 2011.

Diluted earnings per share from continuing operations in the second quarter of 2012 were $0.40 compared to $0.53 per share in the second quarter of 2011. The benefit from adjustments to restructuring costs was $0.06 per share in the second quarter of 2012 and $0.02 per share in the second quarter of 2011.

Commenting on the second quarter results, Camden stated, "Despite tepid economic growth in the US and recessionary conditions across much of Europe, Kelly^® made positive strides in the second quarter. We increased our GP, improved our operating profit, and kept a tight lid on expenses -- all while delivering solid, sustained growth in OCG and our higher-margin staffing businesses."

Kelly also reported that on August 7, its board of directors declared a dividend of $0.05 per share. The dividend is payable September 6, 2012 to shareholders of record as of the close of business on August 17, 2012.

In conjunction with its second quarter earnings release, Kelly Services, Inc. will host a conference call at 9:00 a.m. (ET) on August 8 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: 1 651 291-5254

The pass code is Kelly Services

Via the Internet:

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

This release contains statements that are forward looking in nature and accordingly, are subject to risks and uncertainties. These factors include, but are not limited to, competitive market pressures including pricing, changing market and economic conditions, our ability to achieve our business strategy, including our ability to successfully expand into new markets and service lines, material changes in demand from or loss of large corporate customers, impairment charges triggered by adverse industry or market developments, unexpected termination of customer contracts, availability of temporary workers with appropriate skills required by customers, liabilities for employment-related claims and losses, including class action lawsuits and collective actions, liability for improper disclosure of sensitive or private employee information, unexpected changes in claim trends on workers' compensation and benefit plans, our ability to maintain specified financial covenants in our bank facilities, our ability to access credit markets and continued availability of financing for funding working capital, our ability to sustain critical business applications through our key data centers, our ability to effectively implement and manage our information technology programs, our ability to retain the services of our senior management, local management and field personnel, the impact of changes in laws and regulations (including federal, state and international tax laws and the expiration of the U.S. work opportunity credit program), the net financial impact of the Patient Protection and Affordable Care Act on our business, risks associated with conducting business in foreign countries, including foreign currency fluctuations, and other risks, uncertainties and 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, and we have no intention to update these statements.

About Kelly Services^®
Kelly Services, Inc. (NASDAQ: KELYA) (NASDAQ: KELYB) is a leader in providing workforce solutions. Kelly^® offers a comprehensive array of outsourcing and consulting services as well as world-class staffing on a temporary, temporary-to-hire and direct-hire basis. Serving clients around the globe, Kelly provides employment to more than 550,000 employees annually. Revenue in 2011 was $5.6 billion. Visit kellyservices.com and connect with us on Facebook, LinkedIn, & Twitter. Click to download The Talent Project, our free iPad app.

KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 13 WEEKS ENDED JULY 1, 2012 AND JULY 3, 2011
(UNAUDITED)
(In millions of dollars except per share data)
			2012				2011				Change						% Change
Revenue from services			$	1,366.1			$	1,405.8			$	(39.7	)				(2.8)	%
Cost of services				1,142.9				1,183.7				(40.8	)				(3.4	)
Gross profit				223.2				222.1				1.1					0.5
Selling, general and administrative expenses				199.4				200.8				(1.4	)				(0.7	)
Earnings from operations				23.8				21.3				2.5					12.0
Other expense, net				(0.5	)			(0.7	)			0.2					21.4
Earnings from continuing operations before taxes				23.3				20.6				2.7					13.0
Income taxes				8.3				0.6				7.7					NM
Earnings from continuing operations				15.0				20.0				(5.0	)				(24.6	)
Earnings (loss) from discontinued operations, net of tax				-				(1.2	)			1.2					NM
Net earnings			$	15.0			$	18.8			$	(3.8	)				(19.9)	%
Basic earnings per share on common stock
	Earnings from continuing operations		$	0.40			$	0.53			$	(0.13	)				(24.5)	%
	Earnings (loss) from discontinued operations			-				(0.03	)			0.03					NM
	Net earnings			0.40				0.50				(0.10	)				(20.0	)
Diluted earnings per share on common stock
	Earnings from continuing operations		$	0.40			$	0.53			$	(0.13	)				(24.5)	%
	Earnings (loss) from discontinued operations			-				(0.03	)			0.03					NM
	Net earnings			0.40				0.50				(0.10	)				(20.0	)
STATISTICS:
Gross profit rate				16.3	%			15.8	%			0.5			pts.
Selling, general and administrative expenses:
	% of revenue			14.6				14.3				0.3
	% of gross profit			89.4				90.5				(1.1	)
% Return:
	Earnings from operations			1.7				1.5				0.2
	Earnings from continuing operations before taxes			1.7				1.5				0.2
	Earnings from continuing operations			1.1				1.4				(0.3	)
	Net earnings			1.1				1.3				(0.2	)
Effective income tax rate				35.5	%			3.3	%			32.2			pts.
Average number of shares outstanding (millions):
	Basic			37.0				36.8
	Diluted			37.0				36.8
Shares adjusted for nonvested restricted awards (millions):
	Basic			37.8				37.4
	Diluted			37.8				37.4

KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 26 WEEKS ENDED JULY 1, 2012 AND JULY 3, 2011
(UNAUDITED)
(In millions of dollars except per share data)
			2012				2011				Change						% Change
Revenue from services			$	2,720.9			$	2,744.9			$	(24.0	)				(0.9	)%
Cost of services				2,274.0				2,311.6				(37.6	)				(1.6	)
Gross profit				446.9				433.3				13.6					3.1
Selling, general and administrative expenses				408.4				410.4				(2.0	)				(0.5	)
Earnings from operations				38.5				22.9				15.6					68.3
Other expense, net				(1.1	)			(1.1	)			-					(2.8	)
Earnings from continuing operations before taxes				37.4				21.8				15.6					71.5
Income taxes				13.2				0.7				12.5					NM
Earnings from continuing operations				24.2				21.1				3.1					15.0
Earnings (loss) from discontinued operations, net of tax				0.4				(1.2	)			1.6					NM
Net earnings			$	24.6			$	19.9			$	4.7					24.0	%
Basic earnings per share on common stock
	Earnings from continuing operations		$	0.64			$	0.56			$	0.08					14.3	%
	Earnings (loss) from discontinued operations			0.01				(0.03	)			0.04					NM
	Net earnings			0.65				0.53				0.12					22.6
Diluted earnings per share on common stock
	Earnings from continuing operations		$	0.64			$	0.56			$	0.08					14.3	%
	Earnings (loss) from discontinued operations			0.01				(0.03	)			0.04					NM
	Net earnings			0.65				0.53				0.12					22.6
STATISTICS:
Gross profit rate				16.4	%			15.8	%			0.6			pts.
Selling, general and administrative expenses:
	% of revenue			15.0				15.0				0.0
	% of gross profit			91.4				94.7				(3.3	)
% Return:
	Earnings from operations			1.4				0.8				0.6
	Earnings from continuing operations before taxes			1.4				0.8				0.6
	Earnings from continuing operations			0.9				0.8				0.1
	Net earnings			0.9				0.7				0.2
Effective income tax rate				35.2	%			3.4	%			31.8			pts.
Average number of shares outstanding (millions):
	Basic			36.9				36.7
	Diluted			37.0				36.7
Shares adjusted for nonvested restricted awards (millions):
	Basic			37.8				37.4
	Diluted			37.8				37.4

KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
				Second Quarter
																	Constant
																	Currency
				2012				2011				Change					Change
Americas Commercial
	Revenue from services (including fee-based income)			$	668.6			$	670.3			(0.3	)		%		1.0	%
	Fee-based income				4.2				2.8			48.9					54.2
	Gross profit				97.7				93.3			4.7					6.0
	Gross profit rate				14.6	%			13.9	%		0.7			pts.
Americas PT
	Revenue from services (including fee-based income)			$	262.4			$	247.7			5.9			%		6.2	%
	Fee-based income				4.2				3.7			13.3					13.5
	Gross profit				39.7				35.9			10.4					10.7
	Gross profit rate				15.1	%			14.5	%		0.6			pts.
Total Americas
	Revenue from services (including fee-based income)			$	931.0			$	918.0			1.4			%		2.4	%
	Fee-based income				8.4				6.5			28.7					31.1
	Gross profit				137.4				129.2			6.3					7.3
	Total SG&A expenses				99.0				95.8			3.3					4.5
	Earnings from operations				38.4				33.4			14.7
	Gross profit rate				14.8	%			14.1	%		0.7			pts.
	Expense rates:
		% of revenue			10.6				10.4			0.2
		% of gross profit			72.0				74.1			(2.1	)
	Operating margin				4.1				3.6			0.5
EMEA Commercial
	Revenue from services (including fee-based income)			$	213.7			$	258.8			(17.4	)		%		(9.1	)%
	Fee-based income				6.2				6.6			(6.6	)				3.4
	Gross profit				34.2				42.3			(19.1	)				(10.6	)
	Gross profit rate				16.0	%			16.3	%		(0.3	)		pts.
EMEA PT
	Revenue from services (including fee-based income)			$	41.6			$	45.8			(9.1	)		%		0.1	%
	Fee-based income				4.4				5.3			(16.0	)				(7.8	)
	Gross profit				10.9				12.4			(12.1	)				(3.2	)
	Gross profit rate				26.1	%			27.0	%		(0.9	)		pts.
Total EMEA
	Revenue from services (including fee-based income)			$	255.3			$	304.6			(16.2	)		%		(7.7	)%
	Fee-based income				10.6				11.9			(10.7	)				(1.5	)
	Gross profit				45.1				54.7			(17.5	)				(8.9	)
	SG&A expenses excluding restructuring charges				41.9				47.3			(11.4	)
	Restructuring charges				(2.2	)			(0.6	)		268.8
	Total SG&A expenses				39.7				46.7			(14.9	)				(6.2	)
	Earnings from operations				5.4				8.0			(32.9	)
	Earnings from operations excluding restructuring charges				3.2				7.4			(57.0	)
	Gross profit rate				17.6	%			17.9	%		(0.3	)		pts.
	Expense rates (excluding restructuring charges):
		% of revenue			16.4				15.5			0.9
		% of gross profit			93.0				86.6			6.4
	Operating margin (excluding restructuring charges)				1.2				2.4			(1.2	)

KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
				Second Quarter
																	Constant
																	Currency
				2012				2011				Change					Change
APAC Commercial
	Revenue from services (including fee-based income)			$	84.3			$	102.3			(17.6	)		%		(14.1	)%
	Fee-based income				3.0				3.7			(14.3	)				(8.6	)
	Gross profit				12.5				14.3			(12.2	)				(8.2	)
	Gross profit rate				14.9	%			13.9	%		1.0			pts.
APAC PT
	Revenue from services (including fee-based income)			$	12.8			$	13.5			(5.4	)		%		(1.6	)%
	Fee-based income				4.1				4.2			(2.0	)				(0.4	)
	Gross profit				5.3				5.6			(4.5	)				(2.2	)
	Gross profit rate				41.7	%			41.3	%		0.4			pts.
Total APAC
	Revenue from services (including fee-based income)			$	97.1			$	115.8			(16.2	)		%		(12.7	)%
	Fee-based income				7.1				7.9			(7.7	)				(4.2	)
	Gross profit				17.8				19.9			(10.0	)				(6.5	)
	Total SG&A expenses				19.0				20.3			(6.4	)				(2.6	)
	Earnings from operations				(1.2	)			(0.4	)		(143.0	)
	Gross profit rate				18.4	%			17.1	%		1.3			pts.
	Expense rates:
		% of revenue			19.6				17.5			2.1
		% of gross profit			106.6				102.4			4.2
	Operating margin				(1.2	)			(0.4	)		(0.8	)
OCG
	Revenue from services (including fee-based income)			$	91.4			$	74.0			23.4			%		25.0	%
	Fee-based income				12.8				9.5			35.2					39.1
	Gross profit				23.7				19.0			24.4					27.2
	Total SG&A expenses				22.8				19.8			14.8					17.9
	Earnings from operations				0.9				(0.8	)		NM
	Gross profit rate				25.9	%			25.7	%		0.2			pts.
	Expense rates:
		% of revenue			25.0				26.8			(1.8	)
		% of gross profit			96.5				104.5			(8.0	)
	Operating margin				0.9				(1.2	)		2.1

KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
				June Year to Date
																	Constant
																	Currency
				2012				2011				Change					Change
Americas Commercial
	Revenue from services (including fee-based income)			$	1,337.9			$	1,323.6			1.1			%		2.0	%
	Fee-based income				7.7				5.6			36.9					40.1
	Gross profit				195.7				185.3			5.5					6.5
	Gross profit rate				14.6	%			14.0	%		0.6			pts.
Americas PT
	Revenue from services (including fee-based income)			$	512.5			$	488.3			5.0			%		5.2	%
	Fee-based income				7.6				6.5			17.7					17.8
	Gross profit				79.9				71.9			11.0					11.2
	Gross profit rate				15.6	%			14.7	%		0.9			pts.
Total Americas
	Revenue from services (including fee-based income)			$	1,850.4			$	1,811.9			2.1			%		2.9	%
	Fee-based income				15.3				12.1			26.6					28.2
	Gross profit				275.6				257.2			7.1					7.8
	Total SG&A expenses				201.9				198.6			1.6					2.4
	Earnings from operations				73.7				58.6			25.5
	Gross profit rate				14.9	%			14.2	%		0.7			pts.
	Expense rates:
		% of revenue			10.9				11.0			(0.1	)
		% of gross profit			73.3				77.2			(3.9	)
	Operating margin				4.0				3.2			0.8
EMEA Commercial
	Revenue from services (including fee-based income)			$	426.7			$	490.3			(13.0	)		%		(7.5	)%
	Fee-based income				12.3				12.4			(0.7	)				6.1
	Gross profit				67.7				79.5			(14.8	)				(9.2	)
	Gross profit rate				15.9	%			16.2	%		(0.3	)		pts.
EMEA PT
	Revenue from services (including fee-based income)			$	83.8			$	87.2			(3.8	)		%		2.3	%
	Fee-based income				9.0				9.7			(6.9	)				(1.2	)
	Gross profit				22.2				23.4			(5.1	)				0.9
	Gross profit rate				26.4	%			26.8	%		(0.4	)		pts.
Total EMEA
	Revenue from services (including fee-based income)			$	510.5			$	577.5			(11.6	)		%		(6.0	)%
	Fee-based income				21.3				22.1			(3.4	)				2.9
	Gross profit				89.9				102.9			(12.6	)				(6.9	)
	SG&A expenses excluding restructuring charges				86.4				93.2			(7.4	)
	Restructuring charges				(2.2	)			3.4			(164.1	)
	Total SG&A expenses				84.2				96.6			(12.9	)				(7.6	)
	Earnings from operations				5.7				6.3			(8.8	)
	Earnings from operations excluding restructuring charges				3.5				9.7			(63.2	)
	Gross profit rate				17.6	%			17.8	%		(0.2	)		pts.
	Expense rates (excluding restructuring charges):
		% of revenue			16.9				16.1			0.8
		% of gross profit			96.1				90.7			5.4
	Operating margin (excluding restructuring charges)				0.7				1.7			(1.0	)

KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
				June Year to Date
																	Constant
																	Currency
				2012				2011				Change					Change
APAC Commercial
	Revenue from services (including fee-based income)			$	172.6			$	202.0			(14.5	)		%		(13.5	)%
	Fee-based income				6.4				7.2			(9.7	)				(7.4	)
	Gross profit				25.6				27.8			(7.8	)				(6.8	)
	Gross profit rate				14.8	%			13.7	%		1.1			pts.
APAC PT
	Revenue from services (including fee-based income)			$	25.6			$	25.0			2.6			%		3.9	%
	Fee-based income				8.1				8.0			0.8					0.5
	Gross profit				10.5				10.6			(0.5	)				(0.4	)
	Gross profit rate				41.1	%			42.4	%		(1.3	)		pts.
Total APAC
	Revenue from services (including fee-based income)			$	198.2			$	227.0			(12.6	)		%		(11.6	)%
	Fee-based income				14.5				15.2			(4.2	)				(3.2	)
	Gross profit				36.1				38.4			(5.8	)				(5.1	)
	Total SG&A expenses				38.7				39.3			(1.7	)				(0.9	)
	Earnings from operations				(2.6	)			(0.9	)		(151.2	)
	Gross profit rate				18.2	%			16.9	%		1.3			pts.
	Expense rates:
		% of revenue			19.5				17.3			2.2
		% of gross profit			107.1				102.7			4.4
	Operating margin				(1.3	)			(0.4	)		(0.9	)
OCG
	Revenue from services (including fee-based income)			$	178.1			$	142.2			25.2			%		26.2	%
	Fee-based income				24.4				18.2			34.4					36.7
	Gross profit				46.8				36.0			29.7					31.5
	Total SG&A expenses				45.4				39.2			15.6					17.4
	Earnings from operations				1.4				(3.2	)		NM
	Gross profit rate				26.3	%			25.4	%		0.9			pts.
	Expense rates:
		% of revenue			25.5				27.6			(2.1	)
		% of gross profit			97.1				109.0			(11.9	)
	Operating margin				0.7				(2.3	)		3.0

KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In millions of dollars)
				July 1, 2012				January 1, 2012				July 3, 2011
Current Assets
	Cash and equivalents			$	65.2			$	81.0			$	80.5
	Trade accounts receivable, less allowances of $11.8, $13.4 and $13.6, respectively				985.0				944.9				929.8
	Prepaid expenses and other current assets				57.9				50.6				74.1
	Deferred taxes				33.4				38.2				20.6
		Total current assets			1,141.5				1,114.7				1,105.0
Property and Equipment, Net					90.3				90.6				96.2
Noncurrent Deferred Taxes					93.4				94.1				84.1
Goodwill, Net					91.4				90.2				67.3
Other Assets					168.4				152.1				156.4
Total Assets				$	1,585.0			$	1,541.7			$	1,509.0
Current Liabilities
	Short-term borrowings			$	88.5			$	96.3			$	89.0
	Accounts payable and accrued liabilities				269.5				237.2				222.9
	Accrued payroll and related taxes				253.7				271.4				278.0
	Accrued insurance				30.3				31.5				31.9
	Income and other taxes				56.5				61.3				70.7
		Total current liabilities			698.5				697.7				692.5
Noncurrent Liabilities
	Accrued insurance				51.4				53.5				54.6
	Accrued retirement benefits				102.8				91.1				91.0
	Other long-term liabilities				24.0				23.7				13.7
		Total noncurrent liabilities			178.2				168.3				159.3
Stockholders' Equity
	Common stock				40.1				40.1				40.1
	Treasury stock				(63.2	)			(66.9	)			(68.7	)
	Paid-in capital				27.4				28.8				28.0
	Earnings invested in the business				678.3				657.5				617.5
	Accumulated other comprehensive income				25.7				16.2				40.3
		Total stockholders' equity			708.3				675.7				657.2
Total Liabilities and Stockholders' Equity				$	1,585.0			$	1,541.7			$	1,509.0
STATISTICS:
Working Capital				$	443.0			$	417.0			$	412.5
Current Ratio					1.6				1.6				1.6
Debt-to-capital %					11.1	%			12.5	%			11.9	%
Global Days Sales Outstanding					53				52				52

KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE 26 WEEKS ENDED JULY 1, 2012 AND JULY 3, 2011
(UNAUDITED)
(In millions of dollars)
					2012				2011
Cash flows from operating activities
	Net earnings				$	24.6			$	19.9
	Noncash adjustments:
		Depreciation and amortization				11.6				16.3
		Provision for bad debts				0.6				2.2
		Stock-based compensation				2.1				1.9
		Other, net				-				(0.1	)
	Changes in operating assets and liabilities					(33.0	)			(47.0	)
			Net cash from operating activities			5.9				(6.8	)
Cash flows from investing activities
	Capital expenditures					(9.8	)			(6.3	)
	Other investing activities					-				0.9
			Net cash from investing activities			(9.8	)			(5.4	)
Cash flows from financing activities
	Net change in short-term borrowings					(7.8	)			71.9
	Repayment of debt					-				(62.9	)
	Dividend payments					(3.8	)			-
	Other financing activities					-				(1.1	)
			Net cash from financing activities			(11.6	)			7.9
Effect of exchange rates on cash and equivalents						(0.3	)			4.3
Net change in cash and equivalents						(15.8	)			0.0
Cash and equivalents at beginning of period						81.0				80.5
Cash and equivalents at end of period					$	65.2			$	80.5

KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES
(UNAUDITED)
(In millions of dollars)
			Second Quarter (Commercial, PT and OCG)
									% Change
												Constant
			2012			2011			US$			Currency
Americas
	United States		$	874.4		$	863.3		1.3	%		1.3	%
	Canada			62.0			61.4		0.8			5.2
	Puerto Rico			25.9			24.1		7.7			7.7
	Mexico			25.8			27.6		(6.4	)		8.2
	Brazil			14.4			-		NM			NM
Total Americas				1,002.5			976.4		2.7			3.6
EMEA
	France			61.1			78.1		(21.7	)		(12.1	)
	Switzerland			59.8			62.3		(4.0	)		3.7
	Russia			31.8			37.8		(16.0	)		(6.5	)
	United Kingdom			26.0			30.5		(14.7	)		(12.1	)
	Portugal			19.0			22.7		(16.2	)		(5.9	)
	Germany			17.4			21.0		(17.0	)		(6.8	)
	Norway			16.7			17.5		(3.7	)		4.5
	Italy			15.1			18.5		(18.9	)		(8.8	)
	Other			15.6			22.5		(30.8	)		(21.6	)
Total EMEA				262.5			310.9		(15.6	)		(7.0	)
APAC
	Australia			32.3			37.1		(12.8	)		(8.6	)
	Singapore			24.9			26.3		(5.6	)		(3.6	)
	Malaysia			18.0			18.8		(4.5	)		(1.5	)
	New Zealand			13.4			12.9		3.3			5.0
	India			5.9			17.5		(66.3	)		(59.4	)
	Other			6.6			5.9		12.7			15.8
Total APAC				101.1			118.5		(14.8	)		(11.2	)
Total Kelly Services, Inc.			$	1,366.1		$	1,405.8		(2.8	)%		0.0	%

KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES
(UNAUDITED)
(In millions of dollars)
			June Year to Date (Commercial, PT and OCG)
									% Change
												Constant
			2012			2011			US$			Currency
Americas
	United States		$	1,732.9		$	1,703.0		1.8	%		1.8	%
	Canada			121.5			120.8		0.5			3.5
	Puerto Rico			51.8			46.2		12.3			12.3
	Mexico			51.3			52.7		(2.6	)		8.5
	Brazil			32.4			-		NM			NM
Total Americas				1,989.9			1,922.7		3.5			4.2
EMEA
	France			123.9			148.1		(16.3	)		(9.4	)
	Switzerland			113.4			109.5		3.5			6.9
	Russia			65.4			72.0		(9.2	)		(2.8	)
	United Kingdom			53.7			61.6		(12.8	)		(10.6	)
	Portugal			37.2			43.3		(14.1	)		(6.8	)
	Germany			36.1			41.3		(12.5	)		(5.3	)
	Norway			33.2			32.6		2.1			7.2
	Italy			31.4			35.1		(10.8	)		(3.4	)
	Other			31.2			45.7		(31.7	)		(25.3	)
Total EMEA				525.5			589.2		(10.8	)		(5.2	)
APAC
	Australia			66.2			73.5		(9.9	)		(10.0	)
	Singapore			49.1			52.4		(6.4	)		(5.8	)
	Malaysia			35.8			36.4		(1.7	)		0.1
	New Zealand			26.5			24.4		8.8			5.6
	India			15.4			35.1		(56.2	)		(49.8	)
	Other			12.5			11.2		12.0			13.5
Total APAC				205.5			233.0		(11.8	)		(10.7	)
Total Kelly Services, Inc.			$	2,720.9		$	2,744.9		(0.9	)%		0.9	%

KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
(UNAUDITED)
(In millions of dollars except per share data)
		Second Quarter								June Year to Date
		2012				2011				2012				2011
Pretax earnings from operations		$	23.8			$	21.3			$	38.5			$	22.9
Restructuring charges (Note 1)			(2.2	)			(0.6	)			(2.2	)			3.4
Earnings from operations excluding restructuring charges		$	21.6			$	20.7			$	36.3			$	26.3
		Second Quarter
		2012								2011
		Amount				Per Share				Amount				Per Share
Earnings from continuing operations, net of taxes		$	15.0			$	0.40			$	20.0			$	0.53
Restructuring charges, net of taxes (Note 1)			(2.2	)			(0.06	)			(0.6	)			(0.02	)
Earnings from continuing operations excluding restructuring charges, net of taxes		$	12.8			$	0.34			$	19.4			$	0.52
		June Year to Date
		2012								2011
		Amount				Per Share				Amount				Per Share
Earnings from continuing operations, net of taxes		$	24.2			$	0.64			$	21.1			$	0.56
Restructuring charges, net of taxes (Note 1)			(2.2	)			(0.06	)			3.4				0.09
Earnings from continuing operations excluding restructuring charges, net of taxes		$	22.0			$	0.58			$	24.5			$	0.65

KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
(UNAUDITED) 

Management believes that the non-GAAP (Generally Accepted Accounting Principles) information excluding the restructuring charges is useful to understand the Company's fiscal 2012 financial performance and increases comparability. Specifically, Management believes that excluding this item allows for a more meaningful comparison of current period operating performance with the operating results of prior periods. These non-GAAP measures may have limitations as analytical tools because they exclude items which can have a material impact on cash flow and earnings per share. As a result, Management considers these measures, along with reported results, when it reviews and evaluates the Company's financial performance. Management believes that these measures provide greater transparency to investors and provide insight into how Management is evaluating the Company's financial performance. Non-GAAP measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.

(1)	Restructuring costs relate primarily to revisions of the estimated lease termination costs for EMEA Commercial branches that closed in prior years.