Ink Sales Up

Staples Inc announced yesterday a 48% increase in earnings for the second quarter ending 3 August due to strong sales of toner, ink cartridges, pens and other office supplies. Sales of core office products were up 7%, while sales of technology related products were weak. Revenue for the quarter was up 5.2% to $2.43 billion from $2.31 billion, while net income increased to $59.6 million from $40.4 million a year ago. Sales at its North American retail stores were up 2% to $1.46 billion from a year earlier, but income was down 14% to $46 million. The company reported a loss of $6 million on sales of $190 million in its European operations, with sales up 16% due in part due to strong performance from the UK, the Netherlands and Portugal. The company said forecast profits for the current quarter were not as optimistic, causing stock to fall nearly 7%.