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OfficeMax profit drops in Q4, plans store closures

Naperville, Ill. -- OfficeMax Inc. reported Thursday that net income for the quarter ended Dec. 31 dropped to $2.9 million, from $32.8 million a year earlier.

Sales edged up 3.9% to $1.8 billion in the quarter, but dipped 0.4% to $7.1 billion for the full year. Profit for the year was $32.8 million.

"We closed out a challenging 2011 by continuing to streamline our operations and strengthen the core business," said Ravi Saligram, president and CEO of OfficeMax. "We are making progress in executing the strategic plan we announced in November."

Retail segment sales increased 5.7% to $901 million in the fourth quarter, reflecting a same-store sales increase of 0.2%.

For the upcoming year, OfficeMax said it plans a net reduction in retail store count with up to 35 store closures and one to two store openings in the United States, as well as eight to nine store openings and one to two store closures in Mexico.