OfficeMax NZ boosts profit 6.6%, mulls Croxley future
OfficeMax NZ lifts profit, even as sales fall, and has still to decide whether to sell its Croxley Stationery unit.
BUSINESSDESK: OfficeMax New Zealand, the local unit of the global office supply company, lifted profit by 6.6% last year, even as sales fell, and has still to decide whether to sell its Croxley Stationery unit.
Net profit was $14 million in the 2011 calendar year, up from $13.1m a year earlier, according to OfficeMax Holdings' financial statements, lodged with the Companies Office.
Profit was boosted by lower costs of tax and interest, while sales fell to $382.5m from $389.8m a year earlier.
OfficeMax said no decision had been made on "the future of the Croxley business and it continues to operate as a going concern".
In November, global group chief executive Ravi Saligram told investors in New York the board was evaluating divesting Croxley as it looked at ways to align its trans-Tasman businesses.
The Croxley unit's goodwill was valued at $13.7m as at December 31, making up 19% of the New Zealand group's $71.7m goodwill.
In March, OfficeMax New Zealand opened an Australasian contact centre in Christchurch, adding 60 employees to the 110 at its South Island regional sales office and distribution centre.
OfficeMax's local unit finished repaying a $177m loan accruing 7.5% interest owed to its parent company.
The term loan matured on December 31 2011, and was taken out when OfficeMax, then known as Boise Cascade Corp, bought the New Zealand business in 2000.
Over that period, the parent hasn't taken a dividend, and OfficeMax's local group has retained earnings of $150.1m.
Paul McBeth
Tue, 22 May 2012
Tue, 22 May 2012
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OfficeMax NZ boosts profit 6.6%, mulls Croxley future
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