OfficeMax Profit Slides - TheStreet

OfficeMax Profit Slides

The company says holiday sales were weaker than expected in the fourth quarter.
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OfficeMax

(OMX)

Monday reported a lower fourth-quarter profit, thanks to weaker-than-expected holiday sales, and promotional markdowns.

The Illinois-based company had net income of $700,000, or a loss of 2 cents a share, vs. net income of $15.9 million, or 18 cents a share, a year ago.

Excluding items -- notably the impact of the sale of its paper, forest products, and timberland assets, and related financings -- OfficeMax had a net loss of $24.2 million, or 30 cents a share, compared with a profit of $15.9 million, or 18 cents a share, a year ago. Revenue rose 14% to $2.69 billion from $2.35 billion.

Based on the one analyst surveyed by Thomson First Call, the company was expected to earn 18 cents a share.

Last October, the company completed the sale of its paper, forest products, and timberland assets for approximately $3.7 billion and recorded a $280.6 million pretax gain.

Sales for its OfficeMax retail unit were $1.2 billion, compared with $283.2 million for the 17 days in December 2003 following its acquisition. Year-over-year same-store sales increased 0.4%.

In other news, the company appointed

Hewlett-Packard

(HPQ) - Get Report

vice president Randy G. Burdick chief information officer.

OfficeMax holds its annual shareholders meeting May 9 in Itasca, Illinois.

Earlier this month, the company said it plans to restate earnings for the first three quarters of fiscal year 2004 as the result of an internal investigation into its accounting for vendor income.

Shares closed at $34.16 Friday.