OfficeMax cites cost controls for higher profits
ASSOCIATED PRESS November 6, 2012 12:12PM
Updated: November 7, 2012 11:24AM
Tighter cost controls pushed third-quarter net income higher at Officemax even with weak demand for electronics cutting into sales for almost all office supply retailers.
The Naperville-based company also shed debt that had been guaranteed by the now defunct Lehman Brothers, leading to a $670.8 million gain.
OfficeMax Tuesday reported earnings of $433 million for the period ended September 29th. That’s compared with $21.5 million in the year-ago period.
The company says gross profit edged higher to 22.8 percent as the cost of goods and lease costs declined almost 2.4 percent.
However, comparable stores sales slid as people and businesses cut back on spending for computers and other technology products.
OfficeMax has 960 retail locations in the U.S. and Mexico.