OfficeMax Reiterates Third Quarter And Full Year 2012 Guidance

NAPERVILLE, Ill., Sept. 5, 2012 /PRNewswire/ -- OfficeMax® Incorporated (NYSE:OMX), a leader in office supplies, technology and services, today announced that, as part of its participation today at the Goldman Sachs Annual Global Retailing Conference, it plans to reiterate its outlook for the third quarter and full year 2012.

"Despite an uncertain environment, we continue to make progress on our strategic initiatives and remain on track to achieve our third quarter and full year guidance for sales and operating margin," said Ravi Saligram, President and CEO of OfficeMax.  "As previously mentioned, we continue to systematically address balance sheet simplification within the context of a comprehensive analysis of our overall capital structure.  As part of this effort, certain participants in our legacy pension plans will be offered lump sum payouts, which will potentially lower the plans' liability and mitigate volatility in the level of funding."

In line with the company's previous guidance, OfficeMax anticipates that total company sales for the third quarter will be approximately flat, to slightly higher than, the third quarter of 2011, including the projected unfavorable impact of foreign currency translation.  Additionally, OfficeMax anticipates that for the third quarter of 2012, adjusted operating income margin will be approximately in line with the 2.3% for the prior year period. 

Also in line with the previous guidance, for the full year 2012, OfficeMax anticipates that total company sales will be approximately in line with the prior year, including the projected unfavorable impact of foreign currency translation in 2012 and excluding the additional week in 2011, which generated $86 million in sales.  For the full year 2012, OfficeMax anticipates that adjusted operating income margin will be approximately in line with, to slightly higher than, the 1.7% for the prior year.

Additionally, certain vested participants in the pension plans who are no longer employed by the company will be offered lump sum payments, potentially reducing the size of the pension plans.  The eligible participants account for approximately one quarter of plan liabilities.  The actual amount of reduction to the plan liabilities will depend on the proportion of eligible participants who elect the lump sum payments.  Participants who elect for the lump sum payment will be paid by the end of 2012.   The lump sum payments will be sourced from pension plan assets and are expected to reduce the pension benefit obligation liability. This action will likely result in a non-cash charge during the second half of 2012.

A live webcast can be accessed today at 11:20 a.m. Eastern Daylight Time (10:20 a.m. Central Daylight Time) via the Internet by visiting the OfficeMax website at http://investor.officemax.com.  The webcast will be archived and available online for 30 days and will be posted on the "Presentations" page located within the "Investors" section of the OfficeMax website.

Forward-Looking Statements

Certain statements made in this press release and other written or oral statements made by or on behalf of the company constitute "forward-looking statements" within the meaning of the federal securities laws, including statements regarding the company's future performance, as well as management's expectations, beliefs, intentions, plans, estimates or projections relating to the future.  Management believes that these forward-looking statements are reasonable.  However, the company cannot guarantee that the macroeconomy will perform within the assumptions underlying its projected outlook; that its initiatives will be successfully executed and produce the results underlying its expectations, due to the uncertainties inherent in new initiatives, including customer acceptance, unexpected expenses or challenges, or slower-than-expected results from initiatives; or that its actual results will be consistent with the forward-looking statements and you should not place undue reliance on them.  These statements are based on current expectations and speak only as of the date they are made.  The company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of future events, new information or otherwise.  Important factors regarding the company that may cause results to differ from expectations are included in the company's Annual Report on Form 10-K for the year ended December 31, 2011, under Item 1A "Risk Factors", and in the company's other filings with the SEC.

About OfficeMax

OfficeMax Incorporated (NYSE: OMX) is a leader in integrating products, solutions and services for the workplace, whether for business or at home.  The OfficeMax mission is simple: We provide workplace innovation that enables our customers to work better.  The company provides office supplies and paper, in-store print and document services through OfficeMax ImPress®, technology products and solutions, and furniture to businesses and consumers.  OfficeMax customers are served by approximately 29,000 associates through e-commerce, more than 900 stores in the U.S. and Mexico, direct sales and catalogs. OfficeMax has been named one of the 2012 World's Most Ethical Companies, and is the only company in the office supply industry to receive Ethics Inside® Certification by the Ethisphere Institute.  To find the nearest OfficeMax, call 1-877-OFFICEMAX.  For more information, visit www.officemax.com.

All trademarks, service marks and trade names of OfficeMax Incorporated used herein are trademarks or registered trademarks of OfficeMax Incorporated. Any other product or company names mentioned herein are the trademarks of their respective owners.

SOURCE OfficeMax Incorporated

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