Cost cutting helps raise Office Depot earnings
Office Depot Inc. said fourth-quarter earnings rose 27% as the office supplies retailer cut operating costs and used promotions to drive holiday sales.
Net income jumped to $135 million, or 48 cents a share, from $106.3 million, or 34 cents, a year earlier. Earnings adjusted to exclude certain items were $151.7 million, or 54 cents a share, versus $117.1 million, or 38 cents, for the same period in 2005.
Analysts, whose estimates typically exclude items, had expected profit of 52 cents a share, according to Thomson Financial.
Sales for the Delray Beach, Fla.-based company rose 4% to $3.84 billion but were below Wall Street’s estimate of $3.89 billion.
The company’s shares fell $1.30 to $36.21.
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