Kelly Announces $70 Million Loss
Kelly Services, Inc. has announced results for the fourth quarter and year ended December 28, 2008.
Carl T. Camden, President and Chief Executive Officer, announced revenue for the fourth quarter of 2008 totalled $1.3 billion, a 13% decrease compared to the corresponding quarter in 2007. Revenue for the full year totalled $5.5 billion, a 3% decrease compared to 2007.
Losses from operations for the fourth quarter of 2008 totalled $83.6 million, compared to earnings from operations of $26.5 million reported for the fourth quarter of 2007. Included in the results from operations for the fourth quarter 2008 are impairment charges totalling $80.5 million and $1.5 million of restructuring costs relating to the Company's UK operations.
Losses from operations for the full year of 2008 totalled $70.3 million, compared to earnings from operations of $80.1 million in 2007.
The fourth quarter impairment charges include adjustments to the value of goodwill for the Company's EMEA Commercial segment, the Company's investment in Temp Holdings Co. Ltd. (formerly Tempstaff), a Japanese staffing company, and assets related to operations in the UK. The UK restructuring charge is part of a plan to further consolidate and close branches in the UK during 2009.
Commenting on the fourth quarter results, Camden called the Company's loss disappointing, but not unexpected. "This year, we've witnessed a widespread economic slowdown as anxiety over the global financial crisis intensified. With the loss of 2.6 million jobs in the U.S. alone, it comes as no surprise that demand for temporary staffing has declined dramatically -- here, and throughout the world."
Camden emphasized that Kelly is making prudent decisions to reduce costs and be responsive to the economic times. He added that the Company continues to execute a strategic plan aimed at building long-term value for its stakeholders. "We remain focused on diversifying globally, expanding our professional and technical staffing, and growing our outsourcing and consulting services," said Camden.