(RTTNews) - Wednesday, ACCO Brands Corp. (ABD: News ), reported a swing to profit in third quarter from last year as operating expenses decreased 33%, notwithstanding a 21% a decline in sales.

ACCO's net profit for the third quarter was $1.3 million or $0.02 per share, compared with a net loss of $32.7 million or $0.60 per share in the year-ago period.

Income from continuing operations for the quarter was $1.7 million, or $0.03 per share, compared to a loss of $15.0 million, or $0.28 per share in the prior-year quarter. Results for the third quarter includes $2.8 million of restructuring and other charges.

Excluding charges, adjusted income from continuing operations was to $8.7 million or $0.15 per share, down from $12.6 million or $0.23 per share in the year-ago period. On average, 3 analysts polled by Thomson-Reuters expected the company to report earnings of $0.19 per share for the quarter.

Results also include a net loss on the early extinguishment of debt associated with the company's recent refinancing of $4.2 million, compared to a gain associated with the repurchase of senior subordinated notes of $0.6 million in the prior-year quarter.

Excluding the effect of the refinancing, adjusted earnings per share in the quarter would have been $0.23, compared to$0.22 per share in the prior-year quarter. Foreign exchange translation adversely impacted results by $1.6 million.
Net sales for the quarter decreased 21% to $322.5 million from $410.8 million in the comparable quarter last year. Excluding the effect of currency translation, sales declined 18%. Analysts expected revenue of $328.06 million for the quarter.

Segment-wise, net sales in America decreased to $175.5 million, a 21% decline from the year ago period, as volume declined in all markets driven by continued weakness in consumer and business demand. Sales declined 19% excluding the effect of currency translation.

Net sales in international segment declined 21% to $104.4 million from the prior-year quarter, reflecting continued volume declines in Europe and improving results in Australia, partially offset by price increases. Excluding the effect of currency translation, sales declined 15%.

Computer Products net sales for the quarter decreased 24% to $42.6 million from last year. Adjusted for the effects of currency translation, comparable sales declined 21%. The decline was due to lower sales volumes, particularly in the United States and United Kingdom. The loss of U.S. sales to Circuit City due to its bankruptcy accounted for 7% of the segment decline.

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