OfficeMax to Post Unexpected 4th-Quarter Loss

OfficeMax Inc. said it will have an unexpected fiscal fourth-quarter loss. The office supplies retailer, which previously announced plans to close 50 stores nationwide, said it will report a loss of more than 5 cents a share in the quarter ended Saturday, missing the 2-cent profit forecast by analysts polled by First Call/Thomson Financial. OfficeMax blamed a slowing economy, winter storms and liquidation promotions at some of rival Office Depot’s stores. The store closures, which include nine in California, will eliminate 1,200 jobs, or 3% of the company’s work force. OfficeMax also reduced the number of stores it plans to open this year to fewer than 25 from 50. The Shaker Heights, Ohio-based company, which has lost money for the last three quarters, also plans to reduce the size of its stores by about 15% and cut inventory levels by $400 million by next year. OfficeMax said it will take a fiscal fourth-quarter charge of $75 million for the store closings and liquidations. OfficeMax shares rose 36 cents to close at $3.73 on the NYSE.