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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.
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