Office Depot Inc (NASDAQ:ODP) recently held its conference call to discuss the financial results, for the 3Q2016. During the call, ODP CFO, Steve Hare, pointed out that the company has decided to substantially sell all of its international operations, following which the North American business of the company has been separately highlighted, in the income statement and balance sheet for the 3Q2016. He further claimed that the North American business would be the foundation of their new 3-year strategic plan, aimed at producing profitable growth and enhancing share value.
The company reported that tis sales declined by 7%, during the 3Q2016, on a year-over-year basis. Office Depot claimed that the losses were mainly attributable to the attempted acquisition of Staples. The move had also cost ODP a total of $40 million, as operating expense. Moreover, the company also experienced a surge in its operating income, which increased to $117 million, from $81 million, in the preceding year.
Furthermore, ODP recorded a net income of $330 million for the 3Q2016, as compared to $42 million, in the preceding year. However, the company also recorded a loss of $286 million, in discontinued operations, during the same period. It should be noted here that a number of international assets of the company are yet to be sold and are up for auction. However, ODP further announced that it plans to retain its training and sourcing operations in Asia. The business had been responsible for generating $6 million in revenue and was breakeven, at the end of the 3Q2016.
Office Depot’s outgoing CEO, Roland Smith, claimed that the company was quickly recovering from the failed acquisition with Staples. The company has effectively closed a total of seven stores in North America, which it claims had been under-performing. ODP also claimed that another 65 stores would be closed in the 4Q2016, in order to achieve its target of closing 300 retail store locations.
Office Depot Inc (NASDAQ:ODP) gained 15.08% in terms of its share value, on a trade volume of 19.72 million, during the November 2 trading session. The stock closed at a share price of $3.51.