Kelly Services 8K REPORTS 3rd QUARTER 2010 RESULTS | KELYA 10 Nov 10

Exhibit 99.1

KELLY SERVICES REPORTS 3rd QUARTER 2010 RESULTS

TROY, MI (November 10, 2010) — Kelly Services, Inc. (NASDAQ:KELYA) (NASDAQ:KELYB), a leader in providing workforce solutions, today announced results for the third quarter of 2010.

Carl T. Camden, President and Chief Executive Officer, announced revenue for the third quarter of 2010 totaled $1.3 billion, a 22% increase compared to the corresponding quarter in 2009. On a constant currency basis, revenue increased by 23%.

Earnings from operations for the third quarter of 2010 totaled $14.3 million, compared to losses from operations of $28.0 million reported for the third quarter of 2009. Included in the results from operations for the third quarter of 2010 are restructuring charges of $2.8 million. The loss from operations in the third quarter of 2009 included restructuring charges of $4.6 million and impairment charges of $0.5 million. Excluding the restructuring and impairment charges, earnings from operations were $17.1 million in the third quarter of 2010 compared to a loss from operations of $22.9 million in 2009.

Diluted earnings per share from continuing operations in the third quarter of 2010 were $0.26 compared to third quarter 2009 losses of $0.43 per share. The restructuring charges were $0.05 per share in the third quarter of 2010 and the restructuring and impairment charges totaled $0.12 per share in the third quarter of 2009.

Commenting on the third quarter results, Camden stated, “We’re very pleased that demand for temporary staffing accelerated as global economic expansion persisted and labor markets continued to slowly strengthen. These trends, along with our ability to maintain a leaner cost structure, translated into solid third quarter earnings.

“Our efforts and discipline are clearly yielding results. We’re confident that our realigned strategy enables us to take advantage of growth areas in our industry, particularly professional/technical staffing and supply chain management. We will continue to focus on improving profitability through client-focused solutions that connect the world’s top companies with the world’s best talent.”

In conjunction with its third quarter earnings release, Kelly Services, Inc. will host a conference call at 9:00 a.m. (ET) on November 10, to review the results and answer questions. The call may be accessed in one of the following ways:

Via the Telephone:


U.S. International		1 800 288-9626 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, but are not limited to, competitive market pressures including pricing, changing market and economic conditions, material changes in demand from large corporate customers, availability of temporary workers with appropriate skills required by customers, increases in wages paid to temporary workers, liabilities for client and employee actions, foreign currency fluctuations, changes in laws and regulations (including federal, state and international tax laws), continued availability of financing for funding working capital and acquisitions and for general corporate purposes, the Company’s ability to effectively implement and manage its information technology programs, the ability of the Company to successfully expand into new markets and service lines, and other risks, uncertainties and factors discussed in this release and in the Company’s Annual Report on Form 10-K for the fiscal year ended January 3, 2010 and Quarterly Report on Form 10-Q for the fiscal quarter ended April 4, 2010 filed 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, 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 480,000 employees annually. Revenue in 2009 was $4.3 billion. Visitwww.kellyservices.com and connect with us onfacebook.com/kellyservices,linkedin.com/companies/kelly-services andtwitter.com/kellyservices.


ANALYST CONTACT:		MEDIA CONTACT:
James Polehna		Jane Stehney
(248) 244-4586		(248) 244-5630
james_polehna@kellyservices.com		jane_stehney@kellyservices.com

KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 13 WEEKS ENDED OCTOBER 3, 2010 AND SEPTEMBER 27, 2009
(UNAUDITED)
(In millions of dollars except per share data)


	2010			2009			Change			% Change

Revenue from services	$	1,284.7		$	1,049.2		$	235.5			22.4	%

Cost of services		1,077.5			883.0			194.5			22.0


Gross profit		207.2			166.2			41.0			24.7

Selling, general and administrative expenses		192.9			193.7			(0.8	)		(0.4	)

Asset impairments		—			0.5			(0.5	)		(100.0	)


Earnings (loss) from operations		14.3			(28.0	)		42.3		NM

Other expense, net		(1.5	)		(1.6	)		0.1			8.1


Earnings (loss) from continuing operations before taxes		12.8			(29.6	)		42.4		NM

Income taxes		3.2			(14.8	)		18.0			121.7


Earnings (loss) from continuing operations		9.6			(14.8	)		24.4		NM

Earnings from discontinued operations, net of tax		—			—			—		NM


Net earnings (loss)	$	9.6		$	(14.8	)	$	24.4		NM%


Basic earnings (loss) per share on common stock
Earnings (loss) from continuing operations	$	0.26		$	(0.43	)	$	0.69		NM%
Earnings from discontinued operations		—			—			—		NM
Net earnings (loss)		0.26			(0.43	)		0.69		NM

Diluted earnings (loss) per share on common stock
Earnings (loss) from continuing operations	$	0.26		$	(0.43	)	$	0.69		NM%
Earnings from discontinued operations		—			—			—		NM
Net earnings (loss)		0.26			(0.43	)		0.69		NM


STATISTICS:

Gross profit rate		16.1	%		15.8	%		0.3	pts.

Selling, general and administrative expenses:
% of revenue		15.0			18.5			(3.5	)
% of gross profit		93.1			116.5			(23.4	)

% Return — Earnings (loss) from operations		1.1			(2.7	)		3.8
Earnings (loss) from continuing operations before taxes		1.0			(2.8	)		3.8
Earnings (loss) from continuing operations		0.7			(1.4	)		2.1
Net earnings (loss)		0.7			(1.4	)		2.1

Effective income tax rate		25.1	%		49.9	%		(24.8	) pts.

Average number of shares outstanding (millions):
Basic		36.7			34.9
Diluted		36.7			34.9

KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 39 WEEKS ENDED OCTOBER 3, 2010 AND SEPTEMBER 27, 2009
(UNAUDITED)
(In millions of dollars except per share data)


	2010			2009			Change			% Change

Revenue from services	$	3,624.5		$	3,120.7		$	503.8			16.1	%

Cost of services		3,046.4			2,607.3			439.1			16.8


Gross profit		578.1			513.4			64.7			12.6

Selling, general and administrative expenses		555.4			593.4			(38.0	)		(6.4	)

Asset impairments		1.5			53.1			(51.6	)		(97.1	)


Earnings (loss) from operations		21.2			(133.1	)		154.3		NM

Other expense, net		(4.7	)		(1.3	)		(3.4	)		(253.3	)


Earnings (loss) from continuing operations before taxes		16.5			(134.4	)		150.9		NM

Income taxes		5.0			(37.5	)		42.5			113.5


Earnings (loss) from continuing operations		11.5			(96.9	)		108.4		NM

Earnings from discontinued operations, net of tax		—			0.6			(0.6	)		(100.0	)


Net earnings (loss)	$	11.5		$	(96.3	)	$	107.8		NM%


Basic earnings (loss) per share on common stock
Earnings (loss) from continuing operations	$	0.32		$	(2.78	)	$	3.10		NM%
Earnings from discontinued operations		—			0.02			(0.02	)		(100.0	)
Net earnings (loss)		0.32			(2.76	)		3.08		NM

Diluted earnings (loss) per share on common stock
Earnings (loss) from continuing operations	$	0.32		$	(2.78	)	$	3.10		NM%
Earnings from discontinued operations		—			0.02			(0.02	)		(100.0	)
Net earnings (loss)		0.32			(2.76	)		3.08		NM


STATISTICS:

Gross profit rate		16.0	%		16.5	%		(0.5	) pts.

Selling, general and administrative expenses:
% of revenue		15.3			19.0			(3.7	)
% of gross profit		96.1			115.6			(19.5	)

% Return — Earnings (loss) from operations		0.6			(4.3	)		4.9
Earnings (loss) from continuing operations before taxes		0.5			(4.3	)		4.8
Earnings (loss) from continuing operations		0.3			(3.1	)		3.4
Net earnings (loss)		0.3			(3.1	)		3.4

Effective income tax rate		30.6	%		27.9	%		2.7	pts.

Average number of shares outstanding (millions):
Basic		35.9			34.9
Diluted		35.9			34.9

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


	Third Quarter
										Constant
										Currency
	2010			2009			Change			Change
Americas Commercial
Revenue from services (including fee-based income)	$	633.3		$	467.5			35.5	%		34.7	%
Fee-based income		2.2			1.7			23.8			22.5
Gross profit		92.3			67.2			37.4			36.7
SG&A expenses excluding restructuring charges		69.1			66.0			4.7
Restructuring charges		—			1.8			(100.0	)
Total SG&A expenses		69.1			67.8			2.0			1.4
Earnings from operations		23.2			(0.6	)	NM
Earnings from operations excluding restructuring charges		23.2			1.2		NM

Gross profit rate		14.6	%		14.4	%		0.2	pts.
Expense rates (excluding restructuring charges):
% of revenue		10.9			14.1			(3.2	)
% of gross profit		74.8			98.2			(23.4	)
Operating margin (excluding restructuring charges)		3.7			0.3			3.4

Americas PT
Revenue from services (including fee-based income)	$	233.6		$	192.1			21.6	%		21.5	%
Fee-based income		2.2			2.1			1.9			1.8
Gross profit		37.2			29.5			26.2			26.0
SG&A expenses excluding restructuring charges		23.5			24.5			(4.4	)
Restructuring charges		—			0.1			(100.0	)
Total SG&A expenses		23.5			24.6			(4.8	)		(5.0	)
Earnings from operations		13.7			4.9			185.1
Earnings from operations excluding restructuring charges		13.7			5.0			178.3

Gross profit rate		15.9	%		15.4	%		0.5	pts.
Expense rates (excluding restructuring charges):
% of revenue		10.1			12.8			(2.7	)
% of gross profit		63.1			83.3			(20.2	)
Operating margin (excluding restructuring charges)		5.9			2.6			3.3

EMEA Commercial
Revenue from services (including fee-based income)	$	228.1		$	228.0			0.0	%		5.2	%
Fee-based income		4.5			3.7			23.9			27.8
Gross profit		37.2			33.9			9.7			15.3
SG&A expenses excluding restructuring charges		32.4			37.7			(13.7	)
Restructuring charges		—			1.8			(100.0	)
Total SG&A expenses		32.4			39.5			(17.7	)		(13.8	)
Earnings from operations		4.8			(5.6	)	NM
Earnings from operations excluding restructuring charges		4.8			(3.8	)	NM

Gross profit rate		16.3	%		14.9	%		1.4	pts.
Expense rates (excluding restructuring charges):
% of revenue		14.2			16.5			(2.3	)
% of gross profit		87.2			110.9			(23.7	)
Operating margin (excluding restructuring charges)		2.1			(1.6	)		3.7

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


	Third Quarter
										Constant
										Currency
	2010			2009			Change			Change
EMEA PT
Revenue from services (including fee-based income)	$	37.1		$	36.4			1.9	%		8.5	%
Fee-based income		3.6			3.9			(8.9	)		(5.7	)
Gross profit		9.6			9.8			(1.8	)		3.7
Total SG&A expenses		9.3			9.9			(6.9	)		(2.5	)
Earnings from operations		0.3			(0.1	)	NM

Gross profit rate		26.0	%		27.0	%		(1.0	) pts.
Expense rates:
% of revenue		25.0			27.3			(2.3	)
% of gross profit		96.1			101.3			(5.2	)
Operating margin		1.0			(0.4	)		1.4

APAC Commercial
Revenue from services (including fee-based income)	$	88.7		$	71.2			24.6	%		15.4	%
Fee-based income		3.0			2.3			29.0			19.7
Gross profit		12.4			10.3			19.9			10.9
SG&A expenses excluding restructuring charges		11.4			11.4			0.1
Restructuring charges		—			0.1			(100.0	)
Total SG&A expenses		11.4			11.5			(0.7	)		(7.8	)
Earnings from operations		1.0			(1.2	)	NM
Earnings from operations excluding restructuring charges		1.0			(1.1	)	NM

Gross profit rate		14.0	%		14.5	%		(0.5	) pts.
Expense rates (excluding restructuring charges):
% of revenue		12.8			16.0			(3.2	)
% of gross profit		92.0			110.3			(18.3	)
Operating margin (excluding restructuring charges)		1.1			(1.5	)		2.6

APAC PT
Revenue from services (including fee-based income)	$	8.2		$	6.5			27.3	%		18.8	%
Fee-based income		2.9			1.0			179.5			164.0
Gross profit		3.8			2.0			89.9			78.6
Total SG&A expenses		4.3			2.3			87.9			77.6
Earnings from operations		(0.5	)		(0.3	)		(77.2	)

Gross profit rate		45.2	%		30.3	%		14.9	pts.
Expense rates:
% of revenue		53.0			35.9			17.1
% of gross profit		117.1			118.4			(1.3	)
Operating margin		(7.7	)		(5.6	)		(2.1	)

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


	Third Quarter
										Constant
										Currency
	2010			2009			Change			Change
OCG
Revenue from services (including fee-based income)	$	64.1		$	52.9			21.2	%		21.3	%
Fee-based income		6.6			5.8			13.6			13.5
Gross profit		15.4			13.7			11.7			12.0
SG&A expenses excluding restructuring charges		19.6			17.3			12.9
Restructuring charges		—			0.1			(100.0	)
Total SG&A expenses		19.6			17.4			12.2			13.0
Earnings from operations		(4.2	)		(3.7	)		(14.4	)
Earnings from operations excluding restructuring charges		(4.2	)		(3.6	)		(17.8	)

Gross profit rate		24.0	%		26.1	%		(2.1	) pts.
Expense rates (excluding restructuring charges):
% of revenue		30.5			32.8			(2.3	)
% of gross profit		127.2			125.8			1.4
Operating margin (excluding restructuring charges)		(6.5	)		(6.7	)		0.2

Corporate Expense
SG&A expenses excluding restructuring charges	$	21.2		$	20.2			4.4	%
Restructuring charges		2.8			0.7			301.3
Total SG&A expenses		24.0			20.9			14.4
Asset impairments		—			0.5			(100.0	)

Consolidated Total (net of intersegment activity)
Revenue from services (including fee-based income)	$	1,284.7		$	1,049.2			22.4	%		22.7	%
Fee-based income		24.9			20.5			20.6			19.9
Gross profit		207.2			166.2			24.7			25.1
SG&A expenses excluding restructuring charges		190.1			189.1			0.5
Restructuring charges		2.8			4.6			(38.2	)
Total SG&A expenses		192.9			193.7			(0.4	)		(0.1	)
Asset impairments		—			0.5			(100.0	)
Earnings from operations		14.3			(28.0	)	NM
Earnings from operations excluding restructuring charges		17.1			(23.4	)	NM

Gross profit rate		16.1	%		15.8	%		0.3	pts.
Expense rates (excluding restructuring charges):
% of revenue		14.8			18.0			(3.2	)
% of gross profit		91.7			113.8			(22.1	)
Operating margin (excluding restructuring charges)		1.3			(2.2	)		3.5

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


	September Year to Date
										Constant
										Currency
	2010			2009			Change			Change
Americas Commercial
Revenue from services (including fee-based income)	$	1,781.9		$	1,422.9			25.2	%		23.8	%
Fee-based income		6.5			5.1			26.4			23.2
Gross profit		256.5			210.9			21.6			20.3
SG&A expenses excluding restructuring charges		201.9			205.3			(1.7	)
Restructuring charges		0.3			3.7			(90.3	)
Total SG&A expenses		202.2			209.0			(3.3	)		(4.3	)
Earnings from operations		54.3			1.9		NM
Earnings from operations excluding restructuring charges		54.6			5.6		NM

Gross profit rate		14.4	%		14.8	%		(0.4	) pts.
Expense rates (excluding restructuring charges):
% of revenue		11.3			14.4			(3.1	)
% of gross profit		78.7			97.3			(18.6	)
Operating margin (excluding restructuring charges)		3.1			0.4			2.7

Americas PT
Revenue from services (including fee-based income)	$	659.1		$	584.3			12.8	%		12.6	%
Fee-based income		6.7			7.2			(7.3	)		(7.7	)
Gross profit		103.2			93.2			10.9			10.6
SG&A expenses excluding restructuring charges		69.2			76.2			(9.1	)
Restructuring charges		—			0.2			(100.0	)
Total SG&A expenses		69.2			76.4			(9.4	)		(9.6	)
Earnings from operations		34.0			16.8			103.2
Earnings from operations excluding restructuring charges		34.0			17.0			100.3

Gross profit rate		15.7	%		15.9	%		(0.2	) pts.
Expense rates (excluding restructuring charges):
% of revenue		10.5			13.0			(2.5	)
% of gross profit		67.0			81.7			(14.7	)
Operating margin (excluding restructuring charges)		5.2			2.9			2.3

EMEA Commercial
Revenue from services (including fee-based income)	$	642.8		$	656.3			(2.1	)%		(1.5)	%
Fee-based income		14.4			12.3			18.0			16.4
Gross profit		103.8			102.8			1.0			1.6
SG&A expenses excluding restructuring charges		95.7			115.1			(16.8	)
Restructuring charges		2.7			10.7			(75.1	)
Total SG&A expenses		98.4			125.8			(21.8	)		(21.8	)
Asset impairments		1.5			—		NM
Earnings from operations		3.9			(23.0	)	NM
Earnings from operations excluding restructuring charges		6.6			(12.3	)	NM

Gross profit rate		16.1	%		15.7	%		0.4	pts.
Expense rates (excluding restructuring charges):
% of revenue		14.9			17.5			(2.6	)
% of gross profit		92.2			111.9			(19.7	)
Operating margin (excluding restructuring charges)		1.0			(1.9	)		2.9

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


	September Year to Date
										Constant
										Currency
	2010			2009			Change			Change
EMEA PT
Revenue from services (including fee-based income)	$	106.4		$	102.3			4.0	%		5.5	%
Fee-based income		11.2			12.1			(7.1	)		(8.3	)
Gross profit		28.3			28.0			1.5			2.0
Total SG&A expenses		27.6			30.0			(8.1	)		(8.0	)
Earnings from operations		0.7			(2.0	)	NM

Gross profit rate		26.7	%		27.4	%	(0.7		) pts.
Expense rates:
% of revenue		25.9			29.4			(3.5	)
% of gross profit		97.1			107.2			(10.1	)
Operating margin		0.8			(2.0	)		2.8

APAC Commercial
Revenue from services (including fee-based income)	$	253.3		$	201.9			25.4	%		12.1	%
Fee-based income		8.5			6.8			23.2			10.4
Gross profit		35.5			29.5			20.4			7.0
SG&A expenses excluding restructuring charges		32.0			33.0			(3.0	)
Restructuring charges		0.5			0.2			283.6
Total SG&A expenses		32.5			33.2			(1.8	)		(12.7	)
Earnings from operations		3.0			(3.7	)	NM
Earnings from operations excluding restructuring charges		3.5			(3.5	)	NM

Gross profit rate		14.0	%		14.6	%	(0.6		) pts.
Expense rates (excluding restructuring charges):
% of revenue		12.6			16.3			(3.7	)
% of gross profit		90.3			112.0			(21.7	)
Operating margin (excluding restructuring charges)		1.4			(1.8	)		3.2

APAC PT
Revenue from services (including fee-based income)	$	23.6		$	18.2			29.9	%		17.1	%
Fee-based income		7.6			2.8			166.0			150.1
Gross profit		10.1			5.6			79.3			65.5
Total SG&A expenses		12.0			6.6			81.9			67.7
Earnings from operations		(1.9	)		(1.0	)		(96.8	)

Gross profit rate	��	42.5	%		30.8	%	11.7		pts.
Expense rates:
% of revenue		50.8			36.3			14.5
% of gross profit		119.6			117.8			1.8
Operating margin		(8.3	)		(5.5	)		(2.8	)

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


	September Year to Date
										Constant
										Currency
	2010			2009			Change			Change
OCG
Revenue from services (including fee-based income)	$	179.8		$	151.7			18.5	%		18.1	%
Fee-based income		18.3			18.4			(0.5	)		(2.0	)
Gross profit		42.4			44.2			(4.4	)		(5.1	)
SG&A expenses excluding restructuring charges		56.8			51.7			9.8
Restructuring charges		0.1			0.6			(87.6	)
Total SG&A expenses		56.9			52.3			8.7			8.0
Earnings from operations		(14.5	)		(8.1	)		(80.3	)
Earnings from operations excluding restructuring charges		(14.4	)		(7.5	)		(93.7	)

Gross profit rate		23.5	%		29.2	%	(5.7		) pts.
Expense rates (excluding restructuring charges):
% of revenue		31.6			34.1			(2.5	)
% of gross profit		134.3			116.9			17.4
Operating margin (excluding restructuring charges)		(8.1	)		(4.9	)		(3.2	)

Corporate Expense
SG&A expenses excluding restructuring charges	$	54.7		$	59.8			(8.5	)%
Restructuring charges		3.6			1.1			225.2
Total SG&A expenses		58.3			60.9			(4.3	)
Asset impairments		—			53.1			(100.0	)

Consolidated Total (excluding intersegment activity)
Revenue from services (including fee-based income)	$	3,624.5		$	3,120.7			16.1	%		14.6	%
Fee-based income		73.0			64.6			12.8			9.5
Gross profit		578.1			513.4			12.6			11.2
SG&A expenses excluding restructuring charges		548.2			576.9			(5.0	)
Restructuring charges		7.2			16.5			(56.1	)
Total SG&A expenses		555.4			593.4			(6.4	)		(7.6	)
Asset impairments		1.5			53.1			(97.1	)
Earnings from operations		21.2			(133.1	)	NM
Earnings from operations excluding restructuring charges		28.4			(116.6	)	NM

Gross profit rate		16.0	%		16.5	%	(0.5		) pts.
Expense rates (excluding restructuring charges):
% of revenue		15.1			18.5			(3.4	)
% of gross profit		94.8			112.4			(17.6	)
Operating margin (excluding restructuring charges)		0.8			(3.7	)		4.5

KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE 39 WEEKS ENDED OCTOBER 3, 2010 AND SEPTEMBER 27, 2009
(UNAUDITED)
(In millions of dollars)


	2010			2009
Cash flows from operating activities
Net earnings (loss)	$	11.5		$	(96.3	)
Noncash adjustments:
Impairment of assets		1.5			53.1
Depreciation and amortization		26.5			30.9
Provision for bad debts		1.0			2.7
Stock-based compensation		2.2			3.6
Other, net		1.0			(4.0	)
Changes in operating assets and liabilities		(43.6	)		32.9


Net cash from operating activities		0.1			22.9


Cash flows from investing activities
Capital expenditures		(5.9	)		(7.9	)
Acquisition of companies, net of cash received		—			(7.5	)
Other investing activities		0.5			(2.9	)


Net cash from investing activities		(5.4	)		(18.3	)


Cash flows from financing activities
Net change in revolving line of credit		(12.8	)		(11.9	)
Repayment of debt		(7.3	)		(22.9	)
Sale of stock and other financing activities		24.3			(0.7	)


Net cash from financing activities		4.2			(35.5	)


Effect of exchange rates on cash and equivalents		(0.6	)		3.6


Net change in cash and equivalents		(1.7	)		(27.3	)
Cash and equivalents at beginning of period		88.9			118.3


Cash and equivalents at end of period	$	87.2		$	91.0

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


	October 3,			January 3,			September 27,
	2010			2010			2009
Current Assets
Cash and equivalents	$	87.2		$	88.9		$	91.0
Trade accounts receivable, less allowances of $13.0, $15.0 and $15.7, respectively		831.3			717.9			707.3
Prepaid expenses and other current assets		54.7			70.6			54.3
Deferred taxes		25.5			21.0			25.7


Total current assets		998.7			898.4			878.3

Property and Equipment, Net		107.2			127.1			132.5

Noncurrent Deferred Taxes		80.4			77.5			66.0

Goodwill, Net		67.3			67.3			67.3

Other Assets		135.7			131.4			134.6


Total Assets	$	1,389.3		$	1,301.7		$	1,278.7


Current Liabilities
Short-term borrowings and current portion of long-term debt	$	68.3		$	79.6		$	15.3
Accounts payable and accrued liabilities		167.6			182.6			201.9
Accrued payroll and related taxes		273.0			208.3			229.6
Accrued insurance		20.3			19.7			25.0
Income and other taxes		56.6			47.4			29.8


Total current liabilities		585.8			537.6			501.6

Noncurrent Liabilities
Long-term debt		52.7			57.5			66.0
Accrued insurance		48.2			47.3			43.9
Accrued retirement benefits		79.0			76.9			74.0
Other long-term liabilities		15.3			16.0			14.2


Total noncurrent liabilities		195.2			197.7			198.1

Stockholders’ Equity
Common stock		40.1			40.1			40.1
Treasury stock		(71.2	)		(107.2	)		(107.6	)
Paid-in capital		27.5			36.9			35.9
Earnings invested in the business		583.0			571.5			579.7
Accumulated other comprehensive income		28.9			25.1			30.9


Total stockholders’ equity		608.3			566.4			579.0


Total Liabilities and Stockholders’ Equity	$	1,389.3		$	1,301.7		$	1,278.7


STATISTICS:
Working Capital	$	412.9		$	360.8		$	376.7
Current Ratio		1.7			1.7			1.8
Debt-to-capital %		16.6	%		19.5	%		12.3	%
Global Days Sales Outstanding		52			51			52

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


	Third Quarter (Commercial, PT and OCG)
					% Change
								Constant
	2010		2009		US$			Currency
Americas
United States	$	811.3	$	623.1		30.2	%		30.2	%
Canada		56.7		48.4		17.3			10.8
Mexico		25.2		16.7		50.7			45.4
Puerto Rico		21.7		12.6		71.1			71.1

Total Americas		914.9		700.8		30.5			30.0

EMEA
France		71.3		69.4		2.8			13.3
Switzerland		47.9		38.8		23.8			19.7
United Kingdom		33.8		50.8		(33.6	)		(29.7	)
Russia		26.8		16.5		61.8			58.0
Portugal		21.3		15.8		34.5			48.4
Germany		18.1		16.6		9.1			20.3
Norway		15.1		16.2		(6.8	)		(6.9	)
Italy		14.7		17.4		(15.5	)		(6.9	)
Other		20.8		26.9		(22.7	)		(15.6	)

Total EMEA		269.8		268.4		0.5			5.9

APAC
Australia		31.9		25.0		27.7			16.7
Singapore		21.7		16.4		31.7			23.7
Malaysia		16.5		12.3		34.5			20.3
India		15.5		9.9		56.6			50.2
Other		14.4		16.4		(11.6	)		(17.1	)

Total APAC		100.0		80.0		25.1			15.9

Total Kelly Services, Inc.	$	1,284.7	$	1,049.2		22.4	%		22.7	%

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


	September Year to Date (Commercial, PT and OCG)
					% Change
								Constant
	2010		2009		US$			Currency
Americas
United States	$	2,292.3	$	1,901.2		20.6	%		20.6	%
Canada		162.8		131.9		23.5			9.8
Mexico		66.1		47.5		39.1			30.2
Puerto Rico		55.6		42.9		29.4			29.4

Total Americas		2,576.8		2,123.5		21.3			20.3

EMEA
France		206.2		194.0		6.3			10.7
Switzerland		120.0		99.8		20.4			16.3
United Kingdom		105.6		163.6		(35.5	)		(35.3	)
Russia		75.5		45.5		65.8			55.4
Portugal		58.8		40.1		46.7			53.5
Germany		50.6		47.5		6.7			11.3
Italy		46.1		53.9		(14.5	)		(11.2	)
Norway		43.1		44.4		(3.0	)		(8.8	)
Other		56.9		82.2		(30.8	)		(29.3	)

Total EMEA		762.8		771.0		(1.1	)		(0.3	)

APAC
Australia		88.2		67.9		29.9			9.2
Singapore		60.2		46.5		29.3			21.3
Malaysia		47.4		36.4		30.2			18.6
India		44.4		24.7		79.7			69.2
Other		44.7		50.7		(11.7	)		(22.4	)

Total APAC		284.9		226.2		25.9			12.7

Total Kelly Services, Inc.	$	3,624.5	$	3,120.7		16.1	%		14.6	%

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


	Third Quarter					September Year to Date
	2010		2009			2010		2009

Pretax earnings (loss) from operations	$	14.3	$	(28.0	)	$	21.2	$	(133.1	)

Restructuring charges (Note 1)		2.8		4.6			7.2		16.5
Asset impairments (Note 2)		—		0.5			1.5		53.1


Earnings (loss) from operations excluding restructuring and asset impairment charges	$	17.1	$	(22.9	)	$	29.9	$	(63.5	)


	Third Quarter
	2010					2009
	Amount		Per Share			Amount			Per Share

Earnings (loss) from continuing operations, net of taxes	$	9.6	$	0.26		$	(14.8	)	$	(0.43	)

Restructuring charges, net of taxes (Note 1)		1.8		0.05			3.5			0.10
Asset impairments, net of taxes (Note 2)		—		—			0.8			0.02

					��
Earnings (loss) from continuing operations excluding restructuring and asset impairment charges, net of taxes	$	11.4	$	0.31		$	(10.5	)	$	(0.30	)


	September Year to Date
	2010				2009
	Amount		Per Share		Amount			Per Share

Earnings (loss) from continuing operations, net of taxes	$	11.5	$	0.32	$	(96.9	)	$	(2.78	)

Restructuring charges, net of taxes (Note 1)		5.4		0.15		13.9			0.40
Asset impairments, net of taxes (Note 2)		1.2		0.03		50.0			1.43


Earnings (loss) from continuing operations excluding restructuring and asset impairment charges, net of taxes	$	18.1	$	0.50	$	(33.0	)	$	(0.95	)

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 and impairment charges is useful to understand the Company’s fiscal 2010 financial performance and increases comparability. Specifically, Management believes that excluding these items 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) In 2010, restructuring costs relate primarily to severance and lease termination costs for branches in the EMEA and APAC Commercial segments that were in the process of closure at the end of 2009, as well as severance costs related to the corporate headquarters. In 2009, restructuring costs relate primarily to global severance, lease terminations, asset write-offs and other miscellaneous costs incurred in connection with the reduction in the number of permanent employees and the consolidation, sale or closure of branch locations.

(2) In 2010, the asset impairment charges relate to the write-off of incomplete software projects in Europe. In 2009, the asset impairment charges included 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 and Europe.

Kelly Services (KELYA) 8-KKELLY SERVICES REPORTS 3rd QUARTER 2010 RESULTS