Merger Costs Hit Office Depot's Earnings In Third Quarter
Office Depot Inc., Delray Beach, FL, reported a 75% drop in third-quarter earnings, to 6 cents a diluted share, compared with 24 cents a year ago. Net earnings for the third quarter ended September 26, were $15.7 million, down from $61.7 million in the same period the year before, the company said. However, excluding a charge of $66.8 million for its merger with Viking Office Products, and a charge of $9.9 million for the cost of the failed 1997 merger with Staples Inc., Office Depot reported earnings of 32 cents per diluted share. That beat--by one cent a share--expectations of analysts surveyed by First Call Corp. Third-quarter sales rose 10% to $2.2 billion, from $2.03 billion for the same period last year. Comparable sales in the 573 stores and 21 Office Depot delivery centers open for more than a year increased 5% in the third quarter from a year ago. For nine months, Office Depot had net sales of $6.7 billion, versus $6.01 billion in the year-ago period. Net income for nine months was $164.5 million, compared to $168.3 million last year. "Our sales trends, in both the Stores and Business Services divisions, continue to show year-over-year improvement as we focus our efforts on generating sustainable, profitable growth," said David Fuente, the company's CEO, in a statement.

Boise Cascade Office Products Adds 200 Trucks To Delivery Fleet
Boise Cascade Office Products Corp., Itasca, IL, announced the expansion of its transportation fleet with the addition of 200 new mid-sized delivery trucks. The Freightliner FL60 and FL70 model trucks, which will be used at Boise's 47 distribution centers around the U.S., are powered by Caterpillar CFE (3126B) diesel engines and feature a body supplied by the Morgan Corp., based in Morgantown, PA. The investment is valued at nearly $10 million.

Prison Labor Concerns Highlighted By USA Today
In an article this week, USA Today highlighted the concerns of many in the business products industry--the use of prison labor and its effect on private enterprise. Longstanding concerns such as mandatory preference and waivers are mentioned, and critics also allege that private employers hiring state prison inmates have unfair advantages, such as avoiding health care costs. Marietta, GA-based U.S. Technologies, which recently bought Affordable Interior Systems from USOP and has operations in four prisons, said in the article that prison workers develop work habits and self-respect. The Coalition for Government Procurement countered that federal prison industries have cost the furniture industry more than 2,000 jobs since 1993.

Hunt Authorizes Repurchase Of Up To 500,000 Shares Of Stock
Hunt Corp., Philadelphia, said its board of directors has authorized the company to repurchase up to an additional 500,000 shares of the company's common stock over the next twelve months. The board previously authorized the repurchase of up to 250,000 shares during fiscal 1998, of which 248,800 shares have been repurchased to date.

S&P Affirms Newell/Rubbermaid As 'Stable'
Standard & Poors has affirmed the ratings of Newell Co. and Rubbermaid Inc. as "stable." Newell announced yesterday that it plans to buy Rubbermaid for $5.8 billion. S&P said that Newell's "established track record of focused acquisitions that are rapidly integrated into company operations, the breadth of the combined entity's product lines, and the addition of Rubbermaid's brand provide support for the ratings stablility over the intermediate term."