OfficeMax suffers 4Q loss
NAPERVILLE, Ill. OfficeMax announced that total sales decreased 14.3% in the fourth quarter of 2008 to $1,883.1 million compared to the fourth quarter of 2007, while total sales decreased 9% for the full year 2008 to $8.3 billion compared to the full year 2007. For the fourth quarter of 2008, OfficeMax reported a net loss of $396 million, or $5.21 per diluted share, compared to net income of $70.5 million, or 92 cents per diluted share, in the fourth quarter of 2007. For the full year 2008, OfficeMax reported a net loss of $1.7 billion, or $21.90 per diluted share, compared with net income of $203.4 million, or $2.66 per diluted share, in 2007.
Sam Duncan, chairman and CEO of OfficeMax, said, "Our fourth quarter results reflect the deteriorating economic environment we operated in for both our contract and retail segments. However, we proactively reduced costs and focused on strong capital management. We are pleased with our improvements in working capital and our efforts to minimize expenditures, and are confident that our cash position and existing access to capital will carry us through this challenging economic environment."
OfficeMax retail segment sales decreased 9.7% to $929.2 million in the fourth quarter of 2008 compared to the fourth quarter of 2007, reflecting a same-store sales decrease of 13.6% partially offset by sales from new stores. Retail same-store sales for the fourth quarter of 2008 declined across all major product categories due to weaker small business and consumer spending. For the full year 2008, OfficeMax Retail segment sales decreased 7.2% to $4 billion compared to 2007, reflecting a same-store sales decrease of 10.8%, partially offset by sales from new stores.
OfficeMax expects sales to decline in 2009 on a year- over-year basis as a result of the difficult economic environment. In addition, the company will be cycling significant expense reductions. As a result of these factors, and based on the current outlook, OfficeMax expects continued deleveraging of costs and expenses in 2009.