Staples says 4Q profits fell 14% due to economy

FRAMINGHAM, Mass. – Staples Inc., the world’s largest office-supplies retailer, said last week that fourth-quarter profit fell 14 percent after businesses bought fewer desks and computers.
Net income dropped to $286 million, or 40 cents a share, from a year earlier, Framingham, Mass.-based Staples said in a statement. Excluding changes to the company’s tax rate and costs related to the acquisition of Corporate Express, a Dutch office-supplies distributor, profit totaled 36 cents, 6 cents less than the average of analysts’ estimates compiled by Bloomberg.
The U.S. recession is forcing businesses to tighten spending on computers and office furniture as they cut jobs. Staples said that it expects the “weak economic climate” to persist this year and won’t provide sales or earnings forecasts because of “limited near-term visibility.” Omitting Corporate Express, revenue declined 14 percent in the quarter.
Sales at U.S. and Canadian stores open at least a year fell 13 percent as the average order size and customer traffic dropped. &#8226