Weak sales trends persisted at Office Depot Inc. and OfficeMax Inc. for a considerable period of time before the stock-for-stock merger was completed and we think that trend should continue. Technological innovation may lead to further softening in industry demand as office products become used less frequently or become obsolete. Industry competition from discounters, warehouse clubs, and on-line retailers will remain intense. The combined company does have meaningful synergies as it integrates, which should allow the company to become more efficient, but these gains may be counteracted by industry conditions. We would expect volatile profit performance over the near term to lead to a possible wide range or credit ratios. Without the effects of the one-time costs associated with the
