In early October, the company warned Wall Street that third-quarter earnings would disappoint that the fourth quarter also was at risk because of a slowdown in computer sales and business machines.

Cleveland-based OfficeMax said it earned $33.6 million or $0.27 a share, compared with $31.4 million, or $0.25, a year earlier. The latest figure matched forecast by analysts polled by First Call after the warning, but was below the $0.31 a share anticipated earlier.

Revenues for the quarter were 16 per cent higher at $1.152 billion, up from $992 million a year ago.

After its profit warning on October 6, OfficeMax watched its stock hit a new low of $7.50 a share on the New York Stock Exchange. It has since recovered slightly.

OfficeMax said its inventory at the end of the quarter decreased byabout 11 per cent year-over-year on a per store basis and that it expects inventories on a per store basis to drop more than $25 million chain wide by the end of the year, with additional reductions in 1999 and 2000.

At the end of the quarter on October 24, the inventory balance stood at $1.2 billion compared with $1.1 billion a year ago.

The company said same-store sales, excluding computers, increased six per cent over those of the year ago quarter. However, comparable-store sales including computers increased only two per cent.

Computer sales have been hurt by price cuts and a lack of buying and OfficeMax has significantly cut back on computer promotions.

It noted that its aggressive strategy of opening 57 new stores in existing markets during the past 12 months also hurt same store sales.

OfficeMax said that during the quarter it repurchased about $60 million of its stock at an average price of about $9.20 a share.

It also said that the operations at its joint venture in Mexico had becomeprofitable 18 months earlier than anticipated and that it has increased its ownership to 39 per cent from 19 per cent.