Kodak profits fall 36%
Jul 17, 2001 at 04:00 GMT
Kodak today published their second quarter sales & earnings report. This shows profits are down from $513 million second quarter last year to $325 million second quarter this year. "The (second) quarter's results are consistent with the economic slowdown, and we have yet to see signs of economic recovery,'' Kodak Chairman and Chief Executive Daniel Carp said. "We will continue to manage Kodak in recognition of this reality.''
Kodak profits fall 36.6 percent
ROCHESTER, N.Y., July 17 (Reuters) - Photography giant Eastman Kodak
Co. (NYSE:EK - news) on Tuesday reported a 36.6 percent decline in second-quarter
profits, reflecting weaker sales of cameras and film in a sluggish economy.
Rochester, N.Y.-based Kodak, the world's top seller of film, reported a profit of $325 million, or $1.12 a diluted share, excluding one-time items, down from $513 million, or $1.65 a share, in the same period a year ago.
The Wall Street consensus earnings estimate was $1.12 a share, with a range of $1.08 to $1.17, according to Thomson Financial/First Call.
Second-quarter revenues at Kodak, which has had to cut spending, jobs and inventory as a result of sluggish film sales and the troubled economy, fell 4 percent, to $3.59 billion from $3.75 billion in the same period last year.
Net earnings, including one-time charges, were $36 million, or 12 cents per share, compared with $506 million, or $1.62 per share, in the second quarter of 2000.
After-tax charges in the latest quarter quarter totaled $289 million and included $232 million related to restructuring steps announced in April and $52 million for write-offs associated with the bankruptcy of Kodak customer Wolf Camera Inc., the No. 2 U.S. retailer of cameras and film.
In May Kodak trimmed its longer-term growth forecasts for both profits and revenues as it grappled with the U.S. economic slowdown and its painful transition to digital photography.
"The (second) quarter's results are consistent with the economic slowdown, and we have yet to see signs of economic recovery,'' Kodak Chairman and Chief Executive Daniel Carp said. "We will continue to manage Kodak in recognition of this reality.''
Shares of Kodak closed at $44.70 on Monday, down $1.03, on the New York Stock Exchange. Since its first-quarter results were released in April, the company has outperformed the S&P 500 by about 4 percent.