OFFICE DEPOT PROFIT DECLINES…………

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OFFICE DEPOT PROFIT DECLINES…………

 user 2008-02-26 at 12:04:00 pm Views: 61
  • #21076

    Office Depot Profit Declines on Lower U.S. Sales
    Feb.08–
    Office Depot Inc., the world’s second-largest office-supplies retailer,
    said fourth-quarter profit fell more than analysts estimated as small
    businesses and consumers in the U.S. and Canada curbed spending.Office
    Depot fell the most in more than two months in New York trading.Net
    income declined 85 percent to $18.8 million, or 7 cents a share, from
    $126.6 million, or 45 cents, a year earlier, Office Depot said today in
    a statement. Excluding one-time costs and gains, profit missed
    analysts’ estimates by 7 cents.Revenue rose less than 1 percent to
    $3.87 billion. Office-supply retailers’ sales slowed as customers
    scaled back purchases of copiers and desks while U.S. employment
    declined for the first time in more than four years. Office Depot,
    whose revenue growth trails that of larger Staples Inc., may have hurt
    sales by focusing on cost cuts, said Scott Tilghman, an analyst at
    Soleil Securities Corp.“There’s been an overemphasis on cost and an
    underemphasis on selling,” Tilghman said by telephone from Baltimore
    on Feb. 22. He recommends holding Office Depot shares and doesn’t own
    any.Office Depot, based in Delray Beach, Florida, dropped $1.20, or 8.4
    percent, to $13.07 at 10:07 a.m. in New York Stock Exchange composite
    trading. The stock rose 2.6 percent this year before today. It lost
    almost two-thirds of its value last year.Excluding some costs, Office
    Depot earned 10 cents a share. Fifteen analysts predicted profit of 17
    cents a share, on average, according to a Bloomberg survey. Ten
    analysts estimated sales of $3.81 billion.The retailer also said Chief
    Financial Officer Patricia McKay will leave March 1. Kim Maguire, the
    executive vice president of merchandising, will also leave at the end
    of February “for personal reasons.”Charles Brown, the president of
    Office Depot’s international division, will serve as interim finance
    chief following McKay’s departure. He was CFO from 2001 to 2005.