OfficeMax Q1 sales up slightly

NAPERVILLE, Ill. OfficeMax reported that total sales for its first quarter ended March 7 were $1.9 billion, an increase of 0.3% from the first quarter of 2009. For the first quarter of 2010, OfficeMax reported net income available to OfficeMax common shareholders of $24.8 million, or 29 cents per diluted share.

OfficeMax retail segment sales decreased 3.% to $954.3 million in the first quarter of 2010 compared with the first quarter of 2009, reflecting a same-store sales decrease of 2.5% and fewer stores.  Retail same-store sales for the first quarter of 2010 declined primarily due to a continued weak market environment; however, the retail segment same-store sales decrease improved from the 6.7% decrease in the fourth quarter of 2009 reflecting favorable sales trends in the United States and Mexico, according to the company.

OfficeMax contract segment sales increased 3.8% (a decrease of 3.5% in local currency) compared with the prior year period to $963.0 million in the first quarter of 2010, reflecting a U.S. contract operations sales decline of 3.9%, which was more than offset by an international contract operations sales increase of 23.8% in United States dollars (a sales decrease of 2.6% in local currencies).

Sam Duncan, Chairman and CEO of OfficeMax, said, "We are pleased with the start to 2010 and the solid performance our team delivered in the quarter.  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."

OfficeMax anticipates that for the second quarter, total company sales will be slightly higher than the prior year second quarter primarily due to the favorable impact of foreign currency translation, and adjusted operating income margin will be higher than the prior year second quarter, but less than the first quarter 2010 year-over-year improvement.  For the full year 2010, OfficeMax anticipates that total company sales will be slightly higher than in 2009 primarily due to the favorable impact of foreign currency translation, and adjusted operating income margin will be higher than 2009, but less than the first quarter 2010 year-over-year improvement.