OfficeMax posts 3rd-quarter profit increase, matches Wall Street's consensus

Office supplies retailer OfficeMax Inc. said Thursday its third-quarter earnings rose 61 percent from a year-ago period hurt by hefty operating expenses.

Net income after paying preferred dividends rose to $49 million, or 64 cents per share, from $30.4 million, or 41 cents per share, a year ago.

Excluding costs related to the company's headquarters consolidation and severance, Naperville-based OfficeMax earned $43.2 million, or 56 cents per share, in the third quarter of 2006.

Total sales increased 3 percent to $2.32 billion from $2.24 billion in the third quarter of 2006.

Analysts surveyed by Thomson Financial expected profit of 64 cents per share on sales of $2.33 billion.

"Our results for the third quarter showed continued progress on our turnaround plans, even as we operated in a weaker economic environment that has had some impact on both our contract and retail operating segments," said Sam Duncan, chairman and chief executive of OfficeMax, in a statement. "We continue to adjust our retail promotional strategies and pursue other cost containment measures to improve our retail operating margin."

The company expects capital expenditures to total between $140 million and $160 million for fiscal 2007.