Office Depot posts $1.54B loss in 4Q

Yahoo ^ | 2/24/09 | staff

[Nachum]

NEW YORK (AP) -- Office Depot Inc. said Tuesday it lost $1.54 billion in the fourth quarter as hefty charges and sharply lower sales in North America and abroad weighed on the office supply chain.

The loss was much larger than analysts expected, and Office Depot shares tumbled 20 cents, or 13.8 percent, to a 52-week low of $1.25 in morning trading.

"We are disappointed with the fourth quarter results," Chief Executive Steve Odland said on a conference call with analysts. "As these times have gotten tough for our customers they have significantly cut back their spending, including their spending on office products."

[bgill]

Ok, let’s clarify. Is this a comparison loss from last quarter or a loss from profits of last year or is it truly that they went into the hole this quarter.

[Concho]

Exactly. Sounds like creative accounting to me. We thought that we would make so much, but we didnt, so we can post a loss for the difference????? One and one half billion dollars? Calling mr. Clinton,,,define loss....

[SonOfDarkSkies]

Of the $5.64 per share loss, $4.54 was due to a write-off of goodwill. That certain lessens the pain IMO.

Office Depot said its loss amounted to $5.64 per share for the three months ended Dec. 27, in contrast to a profit of $18.8 million, or 7 cents per share, a year ago.

Results were hurt by goodwill and impairment charges of $4.54 per share and a charge of 37 cents per share for its strategic business review. ,p> To help cut costs, Office Depot previously disclosed it is closing about 9 percent of its North American stores and cutting 2,200 jobs while planning to open fewer locations next year.

Adjusted for charges, Office Depot said it lost $199 million, or 73 cents per share, in the latest quarter.

[Red in Blue PA]

Office Depot is expensive! Went in there for envelopes a few weeks ago for my taxes and a few large envelopes were about 6 bucks!

And they were the Office Depot name, not a brand name.

Walked out without buying anything.

IMO, they are nuts asking those prices.

[riverdawg]

“Office Depot is ... nuts asking those prices.”

Yes, they are not exactly the Wal-Mart of office supplies. I can usually find similar prices and much better service on paper, envelopes, etc. at an old-style office-supply store. We did, though, get a pretty good price on a printer from OD a few months ago.

[ken5050]

Lots of smart companies are using this time to clean up their balance sheets..write down or even off EVERYTHING that looks like it might be a problem...