Kelly Services revenues down over 5% in Q3 2019
Kelly Services has reported its results for the third quarter of 2019.
Peter W. Quigley, president and chief executive officer, announced revenue for the third quarter of 2019 totaled $1.3 billion, a 5.6% decrease, or 4.8% in constant currency, compared to the corresponding quarter of 2018. Third quarter 2019 results include the impact of the January 2019 acquisitions of NextGen and Global Technology Associates, providers of specialty engineering talent to the U.S. telecommunications industry. Excluding the recent 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 totaled $17.1 million, compared to the $21.9 million reported for the third quarter of 2018.
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 unfavorable 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.
"It was a challenging quarter as our newly restructured U.S. branch operations sought to capture high-value growth amidst a sluggish manufacturing sector and a tight labor market,” noted Quigley.
“Despite pressure on the top line, we delivered improvements in GP rate, saw strong performance in our specialty 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 specialty talent solutions strategy.”
Kelly also reported that on 5th November 2019 its board of directors declared a dividend of $0.075 per share. The dividend is payable 5th December 2019 to shareholders of record as of the close of business on 20th November 2019.