Office Depot Q2 loss widens as sales plunge 22 per cent
29 Jul 2009
Office Depot Inc., a leading global provider of office products and services, yesterday said the company's sales for the second quarter decreased 22 per cent to $2.8 billion, while its operating expenses, adjusted for charges, decreased by $143 million compared with the second quarter of 2008.
''Second quarter business results met our expectations given the challenging economic conditions and the period's normal seasonality,'' said Mike Newman, Office Depot's chief financial officer.
''However, the successful execution of our liquidity initiatives generated positive cash flow before financing activities in the second quarter, significantly exceeding our expectations,'' he added.
EBIT, adjusted for charges, was at a loss of $62 million in the second quarter of 2009 or negative 2.2 per cent as a percentage of sales, compared to a positive $21 million or 0.6 per cent as a percentage of sales in the prior-year period.
As consumers and businesses continue to cut spending on office products due to the weak economy, the company reported a net loss of $82 million in the second quarter of 2009, compared to a net loss of $2 million in the same period of 2008.
Adjusted for charges, the company reported a loss of $60 million for the second quarter of 2009, versus earnings of $10 million in the same period one year ago.
