OfficeMax swings to $10.7M 2nd-qtr profit

OfficeMax posts $10.7M 2nd-qtr profit, beats predictions

Associated Press

NAPERVILLE, Ill. (AP) -- Office supply retailer OfficeMax Inc. said Thursday it posted a $10.7 million second-quarter net income, reversing a loss a year ago that stemmed from hefty restructuring charges.

The Naperville, Ill.-based company also announced plans to reinstate its quarterly common stock dividend, which it suspended more than three years ago.

OfficeMax's profit amounted to 12 cents per share and compares with a loss of $3 million, or 4 cents per share in the 2011 quarter. Last year's results included 11 cents per share in charges related to store closures and severance costs.

Revenue fell 2.7 percent to $1.6 billion from $1.65 billion.

The profit beat Wall Street predictions, while the revenue fell short. Analysts, on average, expected a profit of 7 cents per share on $1.64 billion in revenue.

Excluding the effects of changes in foreign exchange rates, stores closed and opened during the year and a shift in the company's fiscal calendar, the company said its sales edged up about 0.3 percent.

OfficeMax said it expects its third-quarter revenue to be about flat to slightly up from its year-ago total. The company's third quarter 2011 revenue totaled $1.77 billion. Analysts polled by FactSet expect $1.79 billion.

For the full year, OfficeMax said it expects its sales to about in line with its 2011 total of $7.12 billion. Analysts expect $7.07 billion.

OfficeMax also said Thursday that it reinstated its quarterly cash dividend, which it had suspended in December 2008. The 2-cent dividend will be paid on Aug. 31 to shareholders of record as of Aug. 15.

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