Office Depot Posts 4th-Quarter Profit

Office Depot Inc. reported a fourth-quarter profit as the largest U.S. office supplies retailer cut costs and said earnings this year would beat forecasts.

Net income was $40.3 million, or 13 cents a share, compared with a loss of $168.3 million, or 57 cents, a year earlier. Sales fell 8.1% to $2.8 billion.

Chief Executive Bruce Nelson, hired in July 2000, has closed 73 less profitable stores, consolidated call centers, held down payroll expenses and pruned unprofitable accounts to help revive earnings.

Nelson said profit this year would be 97 cents to $1.03 a share; the company was expected to earn 87 cents. First-quarter earnings are expected to be 30 to 32 cents; the First Call estimate was 23 cents.

Shares of Office Depot, based in Delray Beach, Fla., rose $2.30 to $18.49 on the NYSE.