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OfficeMax Q3 Comps, Earnings Slip

Wednesday November 6th, 2013 - 11:22AM


For the fiscal third quarter ended September 28, OfficeMax Inc. announced that it had generated adjusted net income available to OfficeMax common shareholders of $13.6 million, or 15 cents per diluted share, versus $22.2 million, or 25 cents per diluted share, in the year earlier period. Adjusted operating income was $28.4 million, or 1.7% of sales, compared to $42.7 million, or 2.4% of sales, in the 2012 quarter.

The company posted unadjusted operating income of $66.8 million versus $33.5 million in the third 2012 quarter and unadjusted net income available to OfficeMax common shareholders of $30.4 million, or 34 cents per diluted share, versus $433 million, or $4.92 per diluted share, in the year-earlier period. 

Total sales were $1.66 billion versus $1.74 billion in the 2012 quarter. 

Retail segment sales decreased 4.7% to $823 million compared to the 2012 quarter, reflecting a comparable store sales decrease on a local currency basis of 2.8% primarily due to decreased traffic and lower technology product category sales, the company stated.  The decrease reflected a U.S. Retail operations comp decrease of 2.8%, and a Mexico retail operations comp decrease of 2.2% on a local currency basis.

"In the third quarter, we continued to experience soft sales overall and weak margins within our contract business, due to a competitive global environment," said Ravi Saligram, OfficeMax president and CEO. "However, through our strategic initiatives, we continue to lay the foundation for evolving our business model. We believe that these initiatives, in combination with the anticipated annual cost synergies from our pending merger with Office Depot, will position the combined company well for success."