OfficeMax sales up slightly in 1Q

Naperville-based OfficeMax Inc. reported sales in the first quarter of 2012 increased slightly, but operating income fell over the same period last year.

Total sales were $1,9 million in the first quarter of 2012, up one-half percent from the first quarter of 2011, the company said in a statement. OfficeMax reported operating income of $17.8 million, down from $28.6 million in the first quarter of 2011. Net income was reported at $4.9 million, or 6 cents per diluted share, compared to $11.4 million, or 13 pcents er diluted share, in the first quarter of 2011.

The company noted the first quarter results include charges related to the closing of a number of stores in the U.S., which reduced operating income by $25.3 million, and net income by $15.4 million, or 18 cents per diluted share.

“We are off to a good start in 2012 and the team delivered solid first quarter results,” said Ravi Saligram, President and CEO of OfficeMax. “We are making steady progress in executing the early stages of our strategic plan.”

The company reported an increase in contract segment sales of 3.8 percent, with operating expenses decreasing 19.6 percent primarily due to the store closings and personnel reorganizations.

Retail segment sales decreased 2.7 percent, with same-store sales decreasing 2.1 percent due to reduced store transactions. Retail segment operating costs increased due primarily to slightly higher store bonus expense and higher spending associated with our growth and profitability initiatives.

The company anticipates total sales for the second quarter will be flat to slightly lower and adjusted operating income margin will be approximately in line with the 1.1 parent for the prior year period.