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Empresas y finanzas

Office Depot posts surprise profit on cost cuts


    BANGALORE (Reuters) - Office Depot Inc reported a surprise first-quarter operating profit on Tuesday as cost cuts offset a sharp decline in sales, and the No. 2 U.S. office supplies retailer's shares rose more than 7 percent.

    The company, whose peers include OfficeMax Inc and industry leader Staples Inc , has been closing stores and laying off workers in a bid to slash costs in the recession.

    Office Depot has also been exploring ways to raise money in 2009, including selling and then leasing back U.S. and European properties, and selling certain accounts receivable in Europe.

    Office supplies sellers have been hit hard by the U.S. recession as consumers and small businesses cut back on buying big-ticket items like furniture and computers.

    Office Depot reported a first-quarter net loss of $55 million, or 20 cents a share, compared with year-earlier net income of $69 million, or 25 cents a share.

    Excluding charges, the Boca Raton, Florida-based company reported earnings of 10 cents a share, while analysts on average were expecting a loss of 10 cents, according to Reuters Estimates.

    Sales at the company, whose products range from computer hardware to school supplies, fell 19 percent to $3.2 billion.

    While Office Depot attributed most of the decline to macroeconomic factors, it said its decision to cut back on advertising promotions also took a toll on sales.

    Sales at U.S. and Canadian stores open at least a year fell 17 percent.

    Office Depot shares were up 7.5 percent at $2.72 in trading before the opening bell.

    (Reporting by Dhanya Skariachan; Editing by Derek Caney)