OfficeMax Says It Expects Shortfalls

OfficeMax Inc., the No. 3 U.S. office-supplies seller, said its earnings will miss expectations in the last two quarters of its fiscal year because of higher advertising and Internet spending. The announcement sent OfficeMax’s shares down nearly 17%, falling $1.18 to close at $5.88 on the New York Stock Exchange. The company said it will scale back store openings from 115 this year to between 50 and 75 next year, and it will take a $50-million third-quarter charge to clear out discontinued merchandise. Third-quarter earnings also were hurt when stores in 11 states closed during Hurricane Floyd, OfficeMax said. The Shaker Heights, Ohio-based company said third-quarter earnings will be 13 to 15 cents a share, less than half the 31-cent average estimate of analysts polled by First Call Corp. Fourth-quarter profit will be 17 to 19 cents, OfficeMax said, far below the 41-cent estimate of analysts.