OfficeMax has reported second quarter profits of $27.4 million.

"Our results for the second quarter showed progress in many areas, but aspects of our businesses remain opportunities for improvement," said Sam Duncan, Chairman and CEO of OfficeMax. "In our Contract segment, operating margin contracted from lower-margin sales in spite of the benefit of some expense leverage. In our Retail segment, positive same store sales, expanded gross margins and cost containment delivered operating income margin improvement."

OfficeMax Contract segment sales increased 4.4% to $1.2 billion in the second quarter of 2007 compared to the second quarter of 2006, reflecting U.S. Contract sales growth of 2.2% and international contract operations sales growth of 11.1% in U.S. dollars, or 2.9% in local currencies.

Retail segment sales increased 4.6% to $935.3 million while same-store sales increased 1.6%. During the second quarter of 2007, OfficeMax opened 9 new retail stores and closed 1 store, ending the quarter with 923 retail stores in the U.S. and Mexico compared with 874 stores at the end of the second quarter of 2006.