By: Business Wire
BOCA RATON — Office Depot, Inc., a leading global provider of office supplies and services that helps customers save time, has announced results for the fiscal quarter ending March 31, 2012.
Total company sales for the first quarter of 2012 were approximately $2.9 billion, down 3% compared to the first quarter of 2011.
The company reported net earnings, after preferred stock dividends, of $41 million or $0.14 per diluted share in the first quarter of 2012, compared to a loss of $15 million or $0.05 per share in the first quarter of 2011.
First quarter 2012 results included approximately $23 million of charges primarily related to restructuring activities, lease accruals and actions to improve future operating performance, and approximately $12 million related to the extinguishment of debt in the quarter.
First quarter 2012 results also included a $68 million favorable pension settlement related to a 2003 European acquisition recognized as a credit to income and slightly offset by a $5 million expense related to this arrangement.
Excluding the charges, debt extinguishment costs and the favorable pension settlement, first quarter 2012 net earnings, after preferred stock dividends, would have been approximately $14 million or $0.05 per share.
First quarter 2011 results included charges totaling $8 million that, after tax, negatively impacted earnings by $0.05 per share. The charges were related to restructuring and integration activity costs, and actions to improve future operating performance.
“Our first quarter 2012 results showed continued year-over-year earnings improvement despite lower sales,” said Neil Austrian, chairman and chief executive officer of Office Depot. “The North American Business Solutions Division delivered a strong performance again this quarter.”