Economy pressures push OfficeMax 2Q results down slightly

PRNewswire

NAPERVILLE — OfficeMax Incorporated said total sales in the second quarter decreased slightly as demand in the office supply sector continues to remain soft.

Total sales were $1,6 million in the second quarter of 2011, a decrease of 0.3% from the second quarter of 2010.  For the second quarter of 2011, OfficeMax reported a net loss available to OfficeMax common shareholders of $3.0 million, or $0.04 per diluted share.  

“We continued to experience top line softness as a result of the difficult macroeconomic environment but have made progress on gross margin initiatives. We remain focused on executing the fundamentals better, enhancing the management team and improving the operations of the business,” said Ravi Saligram, president and CEO of OfficeMax,

Results for the second quarter of 2011 and 2010 included certain charges and income that are not considered indicative of core operating activities.  Second quarter 2011 results included a $5.6 million pretax charge recorded in the retail segment related to store closures; and pretax severance charges of $8.3 million related to reorganizations in Canada, Australia, and the U.S. sales and supply chain organizations.

As a result, adjusted operating income in the second quarter of 2011 was $17.9 million, or 1.1% of sales, compared to $25.3 million, or 1.5% of sales in the second quarter of 2010.  Adjusted net income available to OfficeMax common shareholders in the second quarter of 2011 was $6.0 million, or $0.07 per diluted share, compared to $10.0 million, or $0.12 per diluted share, in the second quarter of 2010.