OfficeMax Reports Q4 Loss, Lower Sales

By Steve Smith -- TWICE, 2/23/2009

Naperville, Ill. — OfficeMax reported a $396 million net loss and a double-digit percent drop in sales for its fiscal fourth quarter, ended Dec. 27.

Total fourth-quarter sales dropped 14.3 percent to $1.88 billion compared with the fourth quarter of 2007. OfficeMax reported a net loss of $396.0 million for the quarter, compared with net income of $70.5 million in the previous year's fourth quarter.

For the year, total sales decreased 9 percent to $8.27 billion compared with 2007. OfficeMax reported a net loss for the year of $1.67 billion, compared with income of $203.4 million in 2007.

In its retail segment, sales decreased 9.7 percent to $929.2 million in the fourth quarter of 2008, compared with the prior year's fourth quarter, reflecting a same-store sales decrease of 13.6 percent 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, retail segment sales decreased 7.2 percent to $3.96 billion, compared with 2007, reflecting a same-store sales decrease of 10.8 percent, again partially offset by sales from new stores.

Retail segment operating loss was $83 million in the fourth quarter of 2008. The segment's adjusted operating income was break-even, compared with operating income of $39.1 million, or 3.8 percent of sales, in the fourth quarter of 2007.

For the full-year 2008, retail segment operating loss was $505.1 million in 2008. The segment's adjusted operating income was $61.2 million, or 1.5 percent of sales, in 2008, compared with operating income of $173.7 million, or 4.1 percent of sales, in 2007.

OfficeMax ended 2008 with a total of 1,022 retail stores, consisting of 939 retail stores in the U.S. and 83 retail stores in Mexico.

HP Posts Higher Sales, Lower Earnings

PALO ALTO, CALIF. — Hewlett-Packard reported slightly higher sales but 13 percent lower GAAP net earnings for its fiscal first quarter, ended Jan. 31.

Net revenue for the quarter was $28.8 billion, up 1 percent from $28.5 billion in the prior year's first quarter. Net revenue would have been up 4 percent from a year earlier when adjusted for the effects of currency.

GAAP net earnings were $1.9 billion, down 13 percent from the prior year's $2.1 billion. Non-GAAP net earnings were even with the prior year's first quarter, at $2.3 billion.

Revenue grew 11 percent in the Americas to $12.4 billion, HP reported.

The company's personal systems group revenue declined 19 percent to $8.8 billion, with unit shipments down 4 percent. Notebook revenue for the quarter was down 13 percent, while desktop revenue declined 25 percent. Operating profit was $435 million, down from $628 million in the prior-year period.

In HP's imaging and printing group, revenue declined 19 percent to $6 billion. Consumer printer hardware units were down 31 percent. Operating profit was $1.1 billion, the same as the prior-year period.

HP software revenue declined 7 percent to $878 million. Operating profit was $140 million, up from $49 million in the prior-year period.