Office Depot Inc. (ODP) Profit Falls 9 Percent
Office Depot Inc., the nation's second biggest office-supply store chain, said Tuesday its third-quarter profit fell 9 percent, hurt by lower consumer spending, a weak housing market and a British economic slowdown. Its shares fell more than 6 percent.
The company had delayed its quarterly results to revise past financial statements after a whistleblower complaint prompted an independent review of vendor-program accounting. It found weakness in its internal controls and led to the firing of four merchandising employees and 2006 and 2007 results being restated.
"To be clear, this is solely related to the timing as to when those funds were recognized," Steve Odland, the company's chairman and CEO, said during a conference call. He added that the problems have been corrected.
Net income fell to $117.5 million, or 43 cents per share, in the three months ended Sept. 29 from $129.1 million, or 45 cents per share, in the year-ago quarter. The latest period includes a $33 million tax benefit.
Sales climbed 2 percent to $3.94 billion from $3.86 billion in the prior-year period.
Analysts surveyed by Thomson Financial predicted profit of 40 cents per share on slightly higher revenue of $3.95 billion.
The company had delayed its quarterly results to revise past financial statements after a whistleblower complaint prompted an independent review of vendor-program accounting. It found weakness in its internal controls and led to the firing of four merchandising employees and 2006 and 2007 results being restated.
"To be clear, this is solely related to the timing as to when those funds were recognized," Steve Odland, the company's chairman and CEO, said during a conference call. He added that the problems have been corrected.
Net income fell to $117.5 million, or 43 cents per share, in the three months ended Sept. 29 from $129.1 million, or 45 cents per share, in the year-ago quarter. The latest period includes a $33 million tax benefit.
Sales climbed 2 percent to $3.94 billion from $3.86 billion in the prior-year period.
Analysts surveyed by Thomson Financial predicted profit of 40 cents per share on slightly higher revenue of $3.95 billion.
Labels: ODP, Office Depot Inc.
posted by Stock Administrator @ 5:07 PM
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