OFFICEMAX SUSPENDS PAYOUTS OF DIVIDEND

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OFFICEMAX SUSPENDS PAYOUTS OF DIVIDEND

 user 2008-12-29 at 9:49:46 am Views: 79
  • #21049

    http://money.cnn.com/news/newsfeeds/articles/djf500/200812181817DOWJONESDJONLINE000996_FORTUNE5.htm
    OfficeMax Suspends Dividend, Expects To Save $45 Million/Year
    December
    2008: OfficeMax Inc. said Thursday it suspended its quarterly dividend,
    effective immediately, because of the weak economy.The suspension is
    expected to save the No. 3 office-supply retailer about $45 million a
    year.A host of companies across a variety of sectors have slashed or
    suspended their dividends as the recession has deepened.OfficeMax Chief
    Executive Sam Duncan said the action “is consistent with the actions
    we’ve taken during 2008 to reduce costs and enhance liquidity.”Last
    month, OfficeMax said it will eliminate 245 corporate and field-
    management positions to save about $20 million.In the third quarter,
    the company swung to a net loss amid investment write- downs related to
    Lehman Brothers Holdings Inc. (LEHMQ), and slumping sales and margins.

    OfficeMax
    has been struggling this year, along with the rest of the retail
    sector, as sales dropped amid weaker consumer spending. Before it
    announced job cuts, the company has said it didn’t expect net new
    retail-store growth in 2009 and would delay its store-remodeling
    program until economic conditions improved.OfficeMax’s shares closed up
    3.3% at $6.62 and were unchanged in after-hours trading.