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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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