Corporate Express profits decline

Corporate Express profits decline

The reseller claims the market is still challenging despite signs of recovery

ASX-listed reseller, Corporate Express (ASX:CXP), has taken a hit in the first quarter of 2010.

Net profit after tax tumbled from $11.27 million to $8.46m, a 24.9 per cent drop on the previous corresponding period.

Pre-tax profit fell by 15.2 per cent to $15.86m.

Revenue was down 2.7 per cent from $293,880m to $285.9m compared with the previous corresponding period. Gross profit fell 0.9 per cent to $78.9m.

The results were within the expectations of the company.

“Despite signs that business optimism is recovering in Australia and New Zealand, the market remains challenging and is likely to remain subdued for the balance of first half of 2010,” Corporate Express said in a statement.

With its acquisition by US-based office supplies retailer, Staples, almost complete, this will be the last time Corporate Express will report to the ASX for the rest of the year, according to a company spokesperson.

Staples has been Corporate Express’ major shareholder globally and bid to buy out the rest of the company early this year.

The reseller’s chief financial officer was unavailable for comment at the time of publication.

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