OfficeMax shares jump 10 percent

OfficeMax surprised Wall Street Wednesday with better-than-expected earnings, an announcement that sent shares of the nation's third-largest office supply up more than 10 percent.

OfficeMax said its second-quarter earnings were unchanged from a year ago, beating analysts' forecasts.

From April through June, the Naperville-based company earned $27.4 million, or 35 cents per share.

Quarterly sales grew 5 percent to $2.13 billion, up from $2.04 billion during the same period last year.

"OfficeMax made progress toward our turnaround in the second quarter, but we have opportunities throughout our business," Chief Executive Sam Duncan said.

OfficeMax, which said last year it would close 109 underperforming stores, has been working to improve its supply chain, cut costs and boost margins.

Analysts surveyed by Thomson Financial had forecast earnings of 32 cents per share on sales of $2.12 billion.

The company's performance was a welcome relief to Wall Street amid speculation that OfficeMax might be the target of a takeover.

The results came less than a week after rival Office Depot Inc. said it was hurt by a continued weak economy and slumps in furniture and technology sales due to a contracting housing market and higher fuel and construction costs.

OfficeMax is the third-largest office supply retailer behind Staples Inc. and Office Depot.