CHICAGO (Reuters) - Office Depot Inc (ODP.N) posted a $1.5 billion quarterly loss as small business owners and retail shoppers cut spending sharply, and said it would seek new liquidity sources in 2009, sending its shares down 14.5 percent.
Office Depot's sales have suffered as small business owners and retail consumers spend less on office supplies, a trend that has also hurt peers OfficeMax Inc (OMX.N) and industry leader Staples Inc (SPLS.O).
"We're disappointed in these fourth-quarter results, which are largely a barometer for what is happening in our economy," Office Depot Chief Executive Steve Odland said on a conference call. "As these times have gotten tough for our customers, they have significantly cut back their spending."
The company said it will close stores and try other ways to raise money in 2009, including selling and then leasing back U.S. and European properties, and selling certain accounts receivable in Europe. It also will see dividends from a joint venture and tax refunds.
Office Depot reported a fourth-quarter net loss of $1.54 billion, or $5.64 a share, compared with year-earlier net income of $18.8 million, or 7 cents a share.Sales fell 15 percent to $3.3 billion, below the $3.41 billion analysts polled by Reuters Estimates had expected.
MORE STORE CLOSINGS
In December, the company said it would close 126 stores and lay off about 2,200 people, or 4.5 percent of its workforce, and might exit businesses.
Office Depot said on Tuesday it would close 118 stores in North America this year, including some identified in December, and also plans to exit its retail operations in Japan. At the end of last year, it had 1,267 North American stores.
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