OfficeMax

OfficeMax Inc. (Itasca, Ill.) reported a $24 million net loss for its fourth quarter.

For the full year, the office supplies retailer reported a net income of $173.1 million.

Sales in the fourth quarter of 2004 were $2.7 billion, an increase of 14 percent from the fourth quarter of 2003. Sales for full-year 2004 were $13.3 billion, an increase of 61 percent from 2003. The sales increases in the fourth quarter and for the full year were mostly due to the acquisition of OfficeMax Inc. in December 2003 by Boise Cascade.

OfficeMax retail’s low level of profitability in 2004 was due to weaker-than-expected sales, especially during the important back-to-school and holiday periods, which led to reduced margin dollars, lower vendor income, and a higher expense ratio as a percentage of sales. OfficeMax retail’s profitability was also negatively impacted by greater promotional sales at low or no profitability.