Staples acquisition may boost earnings per share

FRAMINGHAM, Mass. – Despite the impact of shrinking small-business spending, Staples Inc. said last week that it expects the acquisition of Corporate Express NV will help boost its full-year earnings.
The company last week forecasted “low single-digit growth” on a percentage basis for earnings per share for its fiscal year, which includes the July purchase of Corporate Express, Bloomberg News reported.
The Framingham, Mass.-based Staples’ purchase of the Dutch office-supplies distributor will allow the company to earn more from the sales of laptop computers and desks to corporate customers as it eliminates overlapping administration and distribution costs.
The retailer’s North American sales slowed, as did those at Office Depot Inc. and OfficeMax Inc., as small-business spending waned.
Staples, the world’s largest retailer of office supplies, reiterated its forecast that profit excluding the acquisition of Corporate Express will be little changed this year, compared with $1.38 in 2007. Sixteen analysts surveyed by Bloomberg predicted an average $1.43 on that basis. Sales will increase at a “low single-digit” percentage for the year, said the retailer. It runs 2,171 stores worldwide. &#8226