Office Depot predicts a weak fourth quarter

DELRAY BEACH, Fla. Office Depot today announced that it expects its fourth quarter 2007 sales and earnings to continue to fall due to weak economic conditions.

The company reported that its third quarter 2007 results were hurt by the current housing crisis impacting its key markets, particularly Florida and California, which accounted for 28% of North American sales in that period. According to Office Depot, this weakness appears to be spreading to other U.S. retail markets, creating additional pressure on sales and margins.

Diluted earnings per share for the third quarter of 2007 totaled 43 cents, including a tax benefit and the reversal of a bonus accrual totaling 17 cents per share. Similar benefits will not contribute to fourth quarter earnings.