Current Report

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 5, 2009

KELLY SERVICES, INC.

(Exact name of registrant as specified in its charter)


DELAWARE	0-1088	38-1510762

(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)


999 WEST BIG BEAVER ROAD, TROY, MICHIGAN		48084

(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (248) 362-4444

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o		Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o		Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o		Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o		Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition

Kelly Services, Inc. (the “Company”) today released financial information containing highlighted financial data for the three months and six months ended June 28, 2009. A copy of the press release is attached as exhibit 99.1 herein.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits


	99.1			Press Release dated August 5, 2009.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.


		KELLY SERVICES, INC.

Date: August 5, 2009

		/s/ Patricia Little

		Patricia Little
		Executive Vice President and
		Chief Financial Officer
		(Principal Financial Officer)

Date: August 5, 2009

		/s/ Michael E. Debs

		Michael E. Debs
		Senior Vice President and
		Chief Accounting Officer
		(Principal Accounting Officer)

EXHIBIT INDEX


Exhibit No.		Description

	99.1	Press release dated August 5, 2009

Exhibit 99.1

KELLY SERVICES REPORTS 2nd QUARTER 2009 RESULTS

TROY, MI (August 5, 2009) — Kelly Services, Inc., a world leader in workforce management services and human resources solutions, today announced results for the second quarter of 2009.

Carl T. Camden, President and Chief Executive Officer, announced revenue for the second quarter of 2009 totaled $1.0 billion, a 29% decrease compared to the corresponding quarter in 2008. On a constant currency basis, revenue decreased by 24%.

Losses from operations for the second quarter of 2009 totaled $74.5 million, compared to earnings from operations of $15.0 million reported for the second quarter of 2008. Included in the results from operations for the second quarter 2009 are impairment charges totaling $52.6 million and $2.4 million of restructuring costs relating to the Company’s UK operations. Excluding the impairment and restructuring charges, the loss from operations was $19.5 million for the second quarter of 2009.

Diluted losses per share from continuing operations in the second quarter of 2009 were $1.89, compared to second quarter 2008 earnings of $0.30 per share. The impairment charges totaled $1.41 per share and the UK restructuring charge totaled $0.07 per share in the second quarter of 2009.

The second quarter impairment charges include adjustments to the value of goodwill for the Company’s Americas Commercial, EMEA PT and APAC Commercial segments and the long-lived assets related to operations in Japan. The UK restructuring charge is part of a plan to further consolidate and close branches in the UK during 2009.

Commenting on the second quarter results, Camden said the Company’s loss reflects the continued weakened state of labor markets throughout the world.

“In this challenging environment, we remain focused on expense control, where our efforts have had a significant impact on our overall performance. Going forward, we will seek out additional opportunities to simplify our business structure and operate more efficiently.

“While having the potential to yield immediate results, these actions will also serve to strengthen Kelly, provide impetus when the economy improves, and position us for long-term success,” said Camden.

In conjunction with its second quarter earnings release, Kelly Services, Inc. will host a conference call at 9:00 a.m. (ET) on August 5, to review the results and answer questions. The call may be accessed in one of the following ways:

Via the Telephone:


U.S.		1 800 553-0327
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: 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.

A reconciliation of certain non-GAAP financial measures discussed in this release is included in the attached financial information schedules.

About Kelly Services

Kelly Services, Inc. (NASDAQ: KELYA, KELYB) is a world leader in workforce management services and human resources solutions headquartered in Troy, Michigan, offering temporary staffing services, outsourcing, vendor on-site and full-time placement to clients on a global basis. Kelly provides employment to nearly 650,000 employees annually, with skills including office services, accounting, engineering, information technology, law, science, marketing, creative services, light industrial, education, and health care. Revenue in 2008 was $5.5 billion. Visit www.kellyservices.com.


ANALYST CONTACT :		MEDIA CONTACT :
James Polehna		Judith Clark
(248) 244-4586		(248) 244-5362
james_polehna@kellyservices.com		judith_clark@kellyservices.com

KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 13 WEEKS ENDED JUNE 28, 2009 AND JUNE 29, 2008
(UNAUDITED)
(In millions of dollars except per share data)


	2009			2008			Change			% Change

Revenue from services	$	1,028.9		$	1,452.0		$	(423.1	)		(29.1	)%

Cost of services		857.2			1,194.6			(337.4	)		(28.2	)


Gross profit		171.7			257.4			(85.7	)		(33.3	)

Selling, general and administrative expenses		193.6			242.4			(48.8	)		(20.2	)

Asset impairments		52.6			—			52.6		NM


(Loss) earnings from operations		(74.5	)		15.0			(89.5	)	NM

Other (expense) income, net		(1.0	)		0.1			(1.1	)	NM


(Loss) earnings from continuing operations before taxes		(75.5	)		15.1			(90.6	)	NM

Income taxes		(9.5	)		4.7			(14.2	)		(302.4	)


(Loss) earnings from continuing operations		(66.0	)		10.4			(76.4	)	NM

Earnings from discontinued operations, net of tax		—			0.1			(0.1	)		(100.0	)


Net (loss) earnings	$	(66.0	)	$	10.5		$	(76.5	)		NM	%


Basic (loss) earnings per share on common stock
(Loss) earnings from continuing operations	$	(1.89	)	$	0.30		$	(2.19	)		NM	%
Earnings from discontinued operations		—			—			—		NM
Net (loss) earnings		(1.89	)		0.30			(2.19	)	NM

Diluted (loss) earnings per share on common stock
(Loss) earnings from continuing operations	$	(1.89	)	$	0.30		$	(2.19	)		NM	%
Earnings from discontinued operations		—			—			—		NM
Net (loss) earnings		(1.89	)		0.30			(2.19	)	NM

STATISTICS:

Gross profit rate		16.7	%		17.7	%		(1.0	) pts.

Selling, general and administrative expenses:
% of revenue		18.8			16.7			2.1
% of gross profit		112.7			94.2			18.5

% Return — (Loss) earnings from operations		(7.2	)		1.0			(8.2	)
(Loss) earnings from continuing operations before taxes		(7.3	)		1.0			(8.3	)
(Loss) earnings from continuing operations		(6.4	)		0.7			(7.1	)
Net (loss) earnings		(6.4	)		0.7			(7.1	)

Effective income tax rate		12.5	%		30.9	%		(18.4	) pts.

KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 26 WEEKS ENDED JUNE 28, 2009 AND JUNE 29, 2008
(UNAUDITED)
(In millions of dollars except per share data)


	2009			2008			Change			% Change

Revenue from services	$	2,071.5		$	2,840.4		$	(768.9	)		(27.1	)%

Cost of services		1,724.3			2,333.1			(608.8	)		(26.1	)


Gross profit		347.2			507.3			(160.1	)		(31.6	)

Selling, general and administrative expenses		399.7			479.4			(79.7	)		(16.6	)

Asset impairments		52.6			—			52.6		NM


(Loss) earnings from operations		(105.1	)		27.9			(133.0	)		(476.6	)

Other income, net		0.3			0.1			0.2			237.8


(Loss) earnings from continuing operations before taxes		(104.8	)		28.0			(132.8	)		(474.1	)

Income taxes		(22.7	)		9.6			(32.3	)		(337.0	)


(Loss) earnings from continuing operations		(82.1	)		18.4			(100.5	)	NM

Earnings from discontinued operations, net of tax		0.6			0.3			0.3			80.6


Net (loss) earnings	$	(81.5	)	$	18.7		$	(100.2	)		NM	%


Basic (loss) earnings per share on common stock
(Loss) earnings from continuing operations	$	(2.36	)	$	0.52		$	(2.88	)		NM	%
Earnings from discontinued operations		0.02			0.01			0.01			100.0
Net (loss) earnings		(2.34	)		0.53			(2.87	)	NM

Diluted (loss) earnings per share on common stock
(Loss) earnings from continuing operations	$	(2.36	)	$	0.52		$	(2.88	)		NM	%
Earnings from discontinued operations		0.02			0.01			0.01			100.0
Net (loss) earnings		(2.34	)		0.53			(2.87	)	NM

STATISTICS:

Gross profit rate		16.8	%		17.9	%		(1.1	) pts.

Selling, general and administrative expenses:
% of revenue		19.3			16.9			2.4
% of gross profit		115.1			94.5			20.6

% Return — (Loss) earnings from operations		(5.1	)		1.0			(6.1	)
(Loss) earnings from continuing operations before taxes		(5.1	)		1.0			(6.1	)
(Loss) earnings from continuing operations		(4.0	)		0.6			(4.6	)
Net (loss) earnings		(3.9	)		0.7			(4.6	)

Effective income tax rate		21.7	%		34.2	%		(12.5	) pts.

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


	Second Quarter
										Constant
										Currency
	2009			2008			Change			Change

Americas Commercial
Revenue from services (including fee-based income)	$	473.0		$	656.8			(28.0	)%		(26.4	)%
Fee-based income		1.6			4.4			(65.1	)		(63.7	)
Gross profit		70.6			102.5			(31.1	)		(29.8	)
SG&A expenses		68.6			82.8			(17.2	)		(15.6	)
Earnings from operations		2.0			19.7			(89.8	)

Gross profit rate		14.9	%		15.6	%		(0.7	) pts.
Expense rates:
% of revenue		14.5			12.6			1.9
% of gross profit		97.1			80.8			16.3
Operating margin		0.4			3.0			(2.6	)

Americas PT
Revenue from services (including fee-based income)	$	194.8		$	245.5			(20.7	)%		(20.5	)%
Fee-based income		2.3			5.4			(57.7	)		(57.6	)
Gross profit		32.2			42.8			(24.7	)		(24.5	)
SG&A expenses		25.6			28.4			(10.1	)		(9.7	)
Earnings from operations		6.6			14.4			(53.6	)

Gross profit rate		16.5	%		17.4	%		(0.9	) pts.
Expense rates:
% of revenue		13.1			11.6			1.5
% of gross profit		79.2			66.3			12.9
Operating margin		3.4			5.9			(2.5	)

EMEA Commercial
Revenue from services (including fee-based income)	$	211.7		$	351.7			(39.8	)%		(28.4	)%
Fee-based income		3.9			11.1			(65.2	)		(58.0	)
Gross profit		34.4			61.1			(43.8	)		(33.4	)
SG&A expenses		39.7			59.8			(33.6	)		(21.5	)
Earnings from operations		(5.3	)		1.3		NM
Earnings from operations (excluding restructuring charges)		(2.9	)		1.3			(320.1	)

Gross profit rate		16.2	%		17.4	%		(1.2	) pts.
Expense rates:
% of revenue		18.8			17.0			1.8
% of gross profit		115.6			97.8			17.8
Operating margin		(2.5	)		0.4			(2.9	)

EMEA PT
Revenue from services (including fee-based income)	$	33.1		$	46.3			(28.6	)%		(15.6	)%
Fee-based income		3.8			7.7			(50.8	)		(40.5	)
Gross profit		8.8			14.1			(37.5	)		(25.8	)
SG&A expenses		10.1			12.7			(20.3	)		(5.0	)
Earnings from operations		(1.3	)		1.4			(196.6	)

Gross profit rate		26.6	%		30.4	%		(3.8	) pts.
Expense rates:
% of revenue		30.6			27.4			3.2
% of gross profit		115.1			90.3			24.8
Operating margin		(4.0	)		3.0			(7.0	)

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


	Second Quarter
										Constant
										Currency
	2009			2008			Change			Change

APAC Commercial
Revenue from services (including fee-based income)	$	66.3		$	90.9			(27.1	)%		(16.4	)%
Fee-based income		2.3			5.2			(55.5	)		(50.5	)
Gross profit		9.7			15.7			(38.6	)		(29.8	)
SG&A expenses		10.9			15.2			(28.7	)		(18.9	)
Earnings from operations		(1.2	)		0.5			(331.9	)

Gross profit rate		14.6	%		17.3	%		(2.7	) pts.
Expense rates:
% of revenue		16.4			16.8			(0.4	)
% of gross profit		112.3			96.7			15.6
Operating margin		(1.8	)		0.6			(2.4	)

APAC PT
Revenue from services (including fee-based income)	$	5.5		$	9.4			(41.4	)%		(33.9	)%
Fee-based income		0.8			1.4			(39.9	)		(31.3	)
Gross profit		1.7			2.9			(39.2	)		(31.4	)
SG&A expenses		2.1			3.0			(29.2	)		(18.5	)
Earnings from operations		(0.4	)		(0.1	)		(160.3	)

Gross profit rate		31.5	%		30.3	%		1.2	pts.
Expense rates:
% of revenue		38.6			31.9			6.7
% of gross profit		122.6			105.3			17.3
Operating margin		(7.1	)		(1.6	)		(5.5	)

OCG
Revenue from services (including fee-based income)	$	50.1		$	57.2			(12.3	)%		(10.3	)%
Fee-based income		6.0			7.1			(16.3	)		(10.8	)
Gross profit		14.6			18.5			(21.3	)		(18.0	)
SG&A expenses		17.8			17.9			(1.0	)		3.7
Earnings from operations		(3.2	)		0.6		NM

Gross profit rate		29.0	%		32.3	%		(3.3	) pts.
Expense rates:
% of revenue		35.5			31.4			4.1
% of gross profit		122.1			97.1			25.0
Operating margin		(6.4	)		0.9			(7.3	)

Corporate Expense	$	(19.1	)	$	(22.8	)		16.4	%

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


	June Year to Date
										Constant
										Currency
	2009			2008			Change			Change

Americas Commercial
Revenue from services (including fee-based income)	$	955.4		$	1,299.5			(26.5	)%		(24.6	)%
Fee-based income		3.4			8.6			(61.2	)		(58.4	)
Gross profit		143.7			207.4			(30.7	)		(29.1	)
SG&A expenses		141.2			165.5			(14.7	)		(12.7	)
Earnings from operations		2.5			41.9			(94.0	)

Gross profit rate		15.0	%		16.0	%		(1.0	) pts.
Expense rates:
% of revenue		14.8			12.7			2.1
% of gross profit		98.3			79.8			18.5
Operating margin		0.3			3.2			(2.9	)

Americas PT
Revenue from services (including fee-based income)	$	392.2		$	484.1			(19.0	)%		(18.8	)%
Fee-based income		5.1			10.7			(52.8	)		(52.7	)
Gross profit		63.7			85.1			(25.2	)		(24.9	)
SG&A expenses		51.8			56.6			(8.6	)		(8.2	)
Earnings from operations		11.9			28.5			(58.1	)

Gross profit rate		16.2	%		17.6	%		(1.4	) pts.
Expense rates:
% of revenue		13.2			11.7			1.5
% of gross profit		81.2			66.5			14.7
Operating margin		3.0			5.9			(2.9	)

EMEA Commercial
Revenue from services (including fee-based income)	$	428.3		$	673.6			(36.4	)%		(23.4	)%
Fee-based income		8.6			21.8			(60.3	)		(51.6	)
Gross profit		68.9			116.7			(41.0	)		(29.5	)
SG&A expenses		86.3			117.0			(26.2	)		(10.7	)
Earnings from operations		(17.4	)		(0.3	)	NM
Earnings from operations (excluding restructuring charges)		(9.6	)		(0.3	)	NM

Gross profit rate		16.1	%		17.3	%		(1.2	) pts.
Expense rates:
% of revenue		20.2			17.4			2.8
% of gross profit		125.3			100.2			25.1
Operating margin		(4.1	)		0.0			(4.1	)

EMEA PT
Revenue from services (including fee-based income)	$	65.9		$	90.1			(26.9	)%		(12.7	)%
Fee-based income		8.2			14.6			(44.1	)		(31.4	)
Gross profit		18.2			27.1			(32.9	)		(19.5	)
SG&A expenses		20.1			24.7			(18.7	)		(2.2	)
Earnings from operations		(1.9	)		2.4			(179.0	)

Gross profit rate		27.6	%		30.1	%		(2.5	) pts.
Expense rates:
% of revenue		30.5			27.4			3.1
% of gross profit		110.4			91.2			19.2
Operating margin		(2.9	)		2.7			(5.6	)

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


	June Year to Date
										Constant
										Currency
	2009			2008			Change			Change

APAC Commercial
Revenue from services (including fee-based income)	$	130.7		$	177.6			(26.4	)%		(14.1	)%
Fee-based income		4.5			9.5			(52.2	)		(46.0	)
Gross profit		19.2			30.2			(36.8	)		(26.2	)
SG&A expenses		21.7			29.7			(27.0	)		(15.6	)
Earnings from operations		(2.5	)		0.5		NM

Gross profit rate		14.6	%		17.0	%		(2.4	) pts.
Expense rates:
% of revenue		16.6			16.7			(0.1	)
% of gross profit		113.3			98.1			15.2
Operating margin		(1.9	)		0.3			(2.2	)

APAC PT
Revenue from services (including fee-based income)	$	11.7		$	17.9			(34.5	)%		(25.7	)%
Fee-based income		1.8			2.8			(35.7	)		(26.5	)
Gross profit		3.6			5.5			(33.2	)		(24.3	)
SG&A expenses		4.3			5.8			(26.4	)		(14.1	)
Earnings from operations		(0.7	)		(0.3	)		(77.0	)

Gross profit rate		31.1	%		30.5	%		0.6	pts.
Expense rates:
% of revenue		36.6			32.5			4.1
% of gross profit		117.5			106.6			10.9
Operating margin		(5.4	)		(2.0	)		(3.4	)

OCG
Revenue from services (including fee-based income)	$	98.8		$	109.0			(9.3	)%		(6.9	)%
Fee-based income		12.6			13.2			(4.9	)		1.8
Gross profit		30.5			35.7			(14.5	)		(10.6	)
SG&A expenses		34.9			33.2			4.9			10.3
Earnings from operations		(4.4	)		2.5			(285.1	)

Gross profit rate		30.8	%		32.7	%		(1.9	) pts.
Expense rates:
% of revenue		35.3			30.5			4.8
% of gross profit		114.5			93.3			21.2
Operating margin		(4.5	)		2.2			(6.7	)

Corporate Expense	$	(40.0	)	$	(47.3	)		15.4	%

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


	June 28,			December 28,			June 29,
	2009			2008			2008

Current Assets
Cash and equivalents	$	115.2		$	118.3		$	85.4
Trade accounts receivable, less allowances of $15.4, $17.0 and $17.0, respectively		681.0			815.8			952.5
Prepaid expenses and other current assets		57.2			62.0			55.9
Deferred taxes		29.7			31.9			28.2


Total current assets		883.1			1,028.0			1,122.0

Property and Equipment, Net		137.7			151.3			172.5

Noncurrent Deferred Taxes		40.2			40.0			48.0

Goodwill, Net		67.3			117.8			145.2

Other Assets		125.3			120.2			141.8


Total Assets	$	1,253.6		$	1,457.3		$	1,629.5


Current Liabilities
Short-term borrowings	$	—		$	35.2		$	44.9
Accounts payable and accrued liabilities		205.2			244.1			209.9
Accrued payroll and related taxes		217.4			243.2			290.8
Accrued insurance		25.2			26.3			23.0
Income and other taxes		18.1			51.8			65.1
Current portion of long-term debt		77.6			—			—


Total current liabilities		543.5			600.6			633.7

Noncurrent Liabilities
Long-term debt		—			80.0			51.4
Accrued insurance		44.6			46.9			58.8
Accrued retirement benefits		66.4			61.6			76.2
Other long-term liabilities		14.9			15.3			15.4


Total noncurrent liabilities		125.9			203.8			201.8

Stockholders’ Equity
Common stock		40.1			40.1			40.1
Treasury stock		(107.8	)		(111.2	)		(111.4	)
Paid-in capital		34.7			35.8			33.3
Earnings invested in the business		594.5			676.0			786.6
Accumulated other comprehensive income		22.7			12.2			45.4


Total stockholders’ equity		584.2			652.9			794.0


Total Liabilities and Stockholders’ Equity	$	1,253.6		$	1,457.3		$	1,629.5


STATISTICS:
Working Capital	$	339.6		$	427.4		$	488.3
Current Ratio		1.6			1.7			1.8
Debt-to-capital %		11.7	%		15.0	%		10.8	%
Global Days Sales Outstanding		51			50			51

KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE 26 WEEKS ENDED JUNE 28, 2009 AND JUNE 29, 2008
(UNAUDITED)
(In millions of dollars)


	2009			2008

Cash flows from operating activities
Net (loss) earnings	$	(81.5	)	$	18.7
Noncash adjustments:
Impairment of assets		52.6			—
Depreciation and amortization		21.0			22.5
Provision for bad debts		1.3			2.0
Stock-based compensation		2.2			1.6
Other, net		(1.5	)		1.8
Changes in operating assets and liabilities		75.8			(5.3	)


Net cash from operating activities		69.9			41.3


Cash flows from investing activities
Capital expenditures		(5.0	)		(15.6	)
Acquisition of companies, net of cash received		(7.5	)		(10.6	)
Other investing activities		(3.0	)		(0.4	)


Net cash from investing activities		(15.5	)		(26.6	)


Cash flows from financing activities
Net change in revolving line of credit		(13.1	)		(7.4	)
Repayment of debt		(22.9	)		—
Dividend payments		—			(9.5	)
Purchase of treasury stock		—			(8.0	)
Stock options and other stock sales		—			0.1
Other financing activities		(23.6	)		(0.7	)


Net cash from financing activities		(59.6	)		(25.5	)


Effect of exchange rates on cash and equivalents		2.1			3.4


Net change in cash and equivalents		(3.1	)		(7.4	)
Cash and equivalents at beginning of period		118.3			92.8


Cash and equivalents at end of period	$	115.2		$	85.4

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


	Second Quarter (Commercial, PT and OCG)
					% Change
								Constant
	2009		2008		US$			Currency
Americas
United States	$	633.3	$	839.1		(24.5	)%		(24.5	)%
Canada		42.6		63.7		(33.1	)		(22.6	)
Mexico		16.1		19.6		(18.0	)		4.9
Puerto Rico		14.6		20.6		(29.2	)		(29.2	)

Total Americas		706.6		943.0		(25.1	)		(23.9	)

EMEA
France		62.9		95.4		(34.0	)		(24.2	)
United Kingdom		50.2		109.9		(54.3	)		(41.6	)
Switzerland		32.5		52.3		(37.8	)		(33.0	)
Italy		17.6		37.4		(52.9	)		(46.1	)
Germany		15.5		22.8		(32.2	)		(22.2	)
Norway		15.1		24.3		(37.8	)		(20.7	)
Russia		15.1		22.5		(32.9	)		(8.8	)
Portugal		12.6		—	NM			NM
Other		27.1		40.9		(33.9	)		(22.1	)

Total EMEA		248.6		405.5		(38.7	)		(27.1	)

APAC
Australia		22.5		38.1		(40.8	)		(26.3	)
Singapore		15.2		18.7		(18.9	)		(12.6	)
Malaysia		12.0		14.7		(18.6	)		(10.1	)
Other		24.0		32.0		(24.8	)		(16.0	)

Total APAC		73.7		103.5		(28.7	)		(18.3	)

Total Kelly Services, Inc.	$	1,028.9	$	1,452.0		(29.1	)%		(24.4	)%

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


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

Americas
United States	$	1,278.1	$	1,659.8		(23.0	)%		(23.0	)%
Canada		83.5		125.5		(33.5	)		(20.4	)
Mexico		30.8		37.3		(17.4	)		7.7
Puerto Rico		30.3		39.4		(23.3	)		(23.3	)

Total Americas		1,422.7		1,862.0		(23.6	)		(22.2	)

EMEA
France		124.6		182.0		(31.5	)		(21.6	)
United Kingdom		112.8		214.8		(47.5	)		(30.1	)
Switzerland		61.0		94.5		(35.4	)		(30.6	)
Italy		36.5		72.8		(49.8	)		(42.5	)
Germany		30.9		44.2		(30.1	)		(19.8	)
Russia		29.0		43.2		(32.9	)		(7.6	)
Norway		28.2		44.3		(36.3	)		(18.3	)
Portugal		24.3		—	NM			NM
Other		55.3		81.3		(32.1	)		(20.1	)

Total EMEA		502.6		777.1		(35.3	)		(22.2	)

APAC
Australia		42.9		73.8		(41.8	)		(24.4	)
Singapore		30.1		36.5		(17.6	)		(11.4	)
Malaysia		24.1		29.5		(18.3	)		(9.0	)
Other		49.1		61.5		(20.1	)		(9.7	)

Total APAC		146.2		201.3		(27.3	)		(15.3	)

Total Kelly Services, Inc.	$	2,071.5	$	2,840.4		(27.1	)%		(21.7	)%

KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
(UNAUDITED)
(In millions of dollars except per share data)


	Second Quarter
	2009						2008
	Amount			Per Share			Amount		Per Share

(Loss) earnings from continuing operations	$	(66.0	)	$	(1.89	)	$	10.4	$	0.30

U.K. restructuring charge, net of taxes (Note 1)		2.4			0.07			—		—

Asset impairments, net of taxes (Note 2)		49.2			1.41			—


(Loss) earnings from continuing operations excluding restructuring and asset impairment charges, net of taxes	$	(14.4	)	$	(0.41	)	$	10.4	$	0.30


	Second Quarter
	2009			2008		% Change

Selling, general and administrative expenses	$	193.6		$	242.4
U.K. restructuring charge (Note 1)		(2.4	)		—

Selling, general and administrative expenses excluding the U.K. restructuring charge	$	191.2		$	242.4		(21.2	%)


(Loss) earnings from operations	$	(74.5	)	$	15.0
U.K. restructuring charge (Note 1)		2.4			—
Asset impairments (Note 2)		52.6			—

(Loss) earnings from operations excluding restructuring and asset impairment charges	$	(19.5	)	$	15.0		(229.9	%)


EMEA Commercial selling, general and administrative expenses	$	39.7		$	59.8
U.K. restructuring charge (Note 1)		(2.4	)		—

EMEA Commercial selling, general and administrative expenses excluding the U.K. restructuring charge	$	37.3		$	59.8		(37.6	%)


EMEA Commercial (loss) earnings from operations	$	(5.3	)	$	1.3
U.K. restructuring charge (Note 1)		2.4			—

EMEA Commercial (loss) earnings from operations excluding the U.K. restructuring charge	$	(2.9	)	$	1.3		(320.1	%)

KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
(UNAUDITED)
(In millions of dollars except per share data)


	June Year to Date
	2009						2008
	Amount			Per Share			Amount		Per Share

(Loss) earnings from continuing operations	$	(82.1	)	$	(2.36	)	$	18.4	$	0.52

U.K. restructuring charge, net of taxes (Note 1)		7.8			0.22			—		—

Asset impairments, net of taxes (Note 2)		49.2			1.41			—		—


(Loss) earnings from continuing operations excluding restructuring and asset impairment charges, net of tax	$	(25.1	)	$	(0.72	)	$	18.4	$	0.52


	June Year to Date
	2009			2008			% Change

Selling, general and administrative expenses	$	399.7		$	479.4
U.K. restructuring charge (Note 1)		(7.8	)		—

Selling, general and administrative expenses excluding the U.K. restructuring charge	$	391.9		$	479.4			(18.3	%)


(Loss) earnings from operations	$	(105.1	)	$	27.9
U.K. restructuring charge (Note 1)		7.8			—
Asset impairments (Note 2)		52.6			—

(Loss) earnings from operations excluding restructuring and asset impairment charges	$	(44.7	)	$	27.9			(260.2	%)


EMEA Commercial selling, general and administrative expenses	$	86.3		$	117.0
U.K. restructuring charge (Note 1)		(7.8	)		—

EMEA Commercial selling, general and administrative expenses excluding the U.K. restructuring charge	$	78.5		$	117.0			(32.9	%)


EMEA Commercial (loss) earnings from operations	$	(17.4	)	$	(0.3	)
U.K. restructuring charge (Note 1)		7.8			—

EMEA Commercial (loss) earnings from operations excluding the U.K. restructuring charge	$	(9.6	)	$	(0.3	)	NM

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

Management believes that the non-GAAP (Generally Accepted Accounting Principles) information excluding the U.K. restructuring and asset impairment charges are useful to understand the Company’s fiscal 2009 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)		The U.K. restructuring charge is comprised of facility and other exit costs associated with the disposal or closure of 41 branch locations related to the restructuring program.

(2)		The impairment charges include adjustments to the value of goodwill for the Company’s Americas Commercial, APAC Commercial and EMEA PT segments, as well as long-lived assets and intangibles related to operations in Japan.