OfficeMax profit jumps 88%

Naperville, Ill. OfficeMax's first-quarter profit surged 88%, boosted by stronger sales, the company said Thursday. Profit rose to $24.8 million, from $13.1 million in the year-ago quarter.

Revenue edged up to $1.92 billion from $1.91 billion a year ago.

Sales in its contract segment rose 3.8% to $963 million, as international gains offset a decline in the United States.

Retail sales declined 3% to $954.3 million, with same-store sales down 2.5%. The decrease was smaller than the 6.7% decrease reported in the December quarter. The company said the improvement reflected favorable sales trends in the United States and Mexico.

"We believe our results reflect some of the stabilization we are seeing in economic trends, but primarily are indicative of the traction we are gaining in our growth and profitability initiatives." said chairman and CEO Sam Duncan in a statement.

For the full year, OfficeMax expects total sales to be slightly higher than 2009's $7.21 billion. Wall Street has forecast full-year sales of $7.31 billion, with estimates ranging from $7.18 billion to $7.45 billion.

The company closed seven stores during the quarter, ending the period with 1,003 retail stores, down from 1,020 a year ago.

OfficeMax expects capital expenditures of approximately $90-$110 million for its current fiscal year, primarily related to technology and infrastructure investments and upgrades