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Office Depot earnings get big boost from international growth
Associated Press
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April 26 2007, 8:59 AM EDT
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DELRAY BEACH -- Office supplies and services retailer Office Depot Inc. said Thursday its first-quarter profit rose 20 percent, boosted by a jump in international sales and some modest growth in North America.
Quarterly earnings increased to $155.8 million, or 56 cents per share, from $129.5 million, or 43 cents per share during the same period last year. Revenue grew 7 percent to $4.09 billion from $3.82 billion.
Analysts polled by Thomson Financial forecast a profit of 59 cents per share on revenue of $4.16 billion.
The company said international sales rose 21 percent, fueled by new accounts and greater sales to existing customers within the division's contract business.
Sales in North America, however, grew at a more moderate pace of 3 percent. Office Depot said the launch of the Microsoft Windows Vista operating system, while its inventories of personal computers were low, depressed results early in the quarter. Weaker spending by small business customers pressured returns later in the period, the company said.
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