Staples Eases Into Sales Increase As Profits Dip
Framingham-based office supplies retailer Staples Inc. said compared to a year ago, fourth quarter sales increased by 4 percent to $6.4 billion as profit fell by 18 percent to $234 million.
For all of 2009, sales increased by 5 percent compared to 2008 to $24.3 billion while profits declined by 8 percent to $739 million.
Customers have cut back on purchasing furniture, computers and other business machines, the company said.
During the year, the company recorded $84 million in pre-tax integration and restructuring expenses related to the acquisition of Corporate Express. The company also took a $42 million pre-tax charge related to the settlement of several retail wage and hours class action lawsuits.
In 2008, Staples took a $174 million pre-tax integration and restructuring charge related to the Corporate Express acquisition.
The company said it expects "a modest economic recovery in 2010," and a sales increase "in the mid single digits."
The company ended 2009 with $1.4 billion in cash and equivalents compared to $634 million the previous year.
WBJ Web Partners
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