Printer Friendly

KODAK REPORTS HIGHER SALES, EARNINGS FOR 1992 THIRD QUARTER

 KODAK REPORTS HIGHER SALES, EARNINGS
 FOR 1992 THIRD QUARTER
 ROCHESTER, N.Y., Oct. 27 /PRNewswire/ -- Eastman Kodak Company (NYSE: EK) today reported higher sales and net earnings for both its third quarter and the year to date.
 Quarterly sales were $5.18 billion, an increase of 5 percent from $4.93 billion in the 1991 third quarter, while net earnings were $189 million, or $.58 per share, compared with a loss of $118 million or $.37 per share a year ago.
 Third quarter net earnings for 1992 were reduced by special charges amounting to $141 million after-tax or $.43 per share, while the corresponding 1991 quarter was reduced by $435 million of special charges after-tax, or $1.34 per share. Without these charges, 1992 third quarter net earnings would have been $330 million, an increase of 4 percent over last year's $317 million. On a per-share basis, the comparison would have been $1.01 per share in the third quarter versus $.97 per share a year ago.
 For the first three quarters of 1992, sales totaled $14.78 billion, up 3 percent from the $14.34 billion posted a year ago. Net earnings were $847 million, or $2.61 per share compared with $417 million or $1.28 per share for the first three quarters of 1991. The 1992 year-to- date net earnings reflect the beneficial impact of the change in accounting for income taxes that added $152 million or $.47 per share to 1992 earnings. The change was recognized as of the beginning of 1992. These results also include the adverse impact of special charges totaling $141 million after-tax in 1992 and $435 million after-tax in 1991.
 Commenting on the results, Kodak chairman and chief executive officer Kay R. Whitmore said, "Against a background of continuing weakness in world economies, the five percent sales gain recorded by Kodak in the third quarter was respectable. The net earnings increase was hardly surprising given last year's third quarter loss. With special charges excluded from both the 1991 and 1992 quarters, net earnings advanced at about the same rate as sales.
 "Excluding special charges, Imaging segment operating margins were maintained at the historical level, with good continuing volume in photographic products. In the Information segment, a small profit was generated compared with a loss last year. Unsatisfactory earnings in the Information segment are being addressed through aggressive introduction of new and improved products, continued cost reduction and pursuit of the sale of non-strategic units. In the Chemicals segment, the performance of our chemical company was essentially level with last year and better than that of most of its peers in the industry. Good performance in the Health segment was based on continued improvement in returns on sales of diagnostic imaging, pharmaceutical and consumer health products.
 "As to the balance of 1992, we believe we can deliver results in line with general expectations, notwithstanding an economic background considerably less supportive than what was foreseen by many."
 Imaging Segment: Worldwide sales increases in the quarter and year to date were led by Kodacolor films and Ektacolor papers. Sales to customers in the U.S. were essentially level for the quarter. The year- to-date increase was primarily due to higher unit volumes. Outside the U.S., the comparison of quarterly results was adversely affected by the inclusion in the 1991 third quarter of nine months of sales of photofinishing units acquired in Germany. Excluding the sales of these units for the first two quarters of 1991, the third quarter comparison for sales outside the U.S. would have shown good gains due to favorable foreign currency rate changes and volume increases. For the year to date, sales benefited from increased unit volumes and the favorable effects of foreign currency rate changes.
 Sales to customers in the U.S. increased 1 percent to $754 million for the quarter, from last year's $746 million. Outside the U.S., sales for the quarter were up 3 percent to $1.23 billion from $1.19 billion a year ago. Total sales were $1.98 billion, up 2 percent from $1.94 billion in the 1991 third quarter. Worldwide earnings from operations were $313 million compared with $93 million in 1991.
 For the year to date, sales in the U.S. were $2.11 billion, up 5 percent from last year's $2.01 billion. Sales outside the U.S. were $3.34 billion, also a 5 percent increase from the $3.17 billion posted a year ago. Total Imaging sales for the year to date were $5.44 billion, up 5 percent over $5.18 billion during the comparable 1991 period. Worldwide earnings from operations were $900 million compared with $678 million in 1991.
 Information Segment: Sales inside the U.S. were essentially level for the third quarter and declined slightly for the year to date. Outside the U.S., sales gains for the quarter and the year to date were due to the favorable effects of foreign currency rate changes and increased unit volumes, particularly in copy products and printing and publishing products.
 Sales to customers in the U.S. increased 1 percent to $561 million for the quarter, compared with last year's $557 million. Outside the U.S., sales for the quarter were up 19 percent to $421 million from $354 million a year ago. Total sales were $982 million, up 8 percent from $911 million in the 1991 third quarter. The worldwide loss from operations was $113 million compared with a loss of $230 million in 1991.
 For the year to date, sales in the U.S. were $1.66 billion, down 2 percent from last year's $1.70 billion. Sales outside the U.S. were $1.23 billion, a 7 percent increase from the $1.15 billion posted a year ago. Total Information sales for the year to date were $2.89 billion, up 1 percent over $2.85 billion during the comparable 1991 period. The worldwide loss from operations was $139 million, compared with a loss of $210 million in 1991.
 Chemicals Segment: Sales to customers in the U.S. benefited from volume increases and higher effective selling prices in the third quarter, while sales increases for the year to date were primarily due to volume gains. Outside the U.S., sales increases for the quarter were due to increased unit volumes and the favorable effects of foreign currency rate changes. Sales of specialty chemicals recorded substantial gains for the quarter and double-digit growth for the year to date. Third quarter earnings from operations were down slightly in what appears to be the bottom of the chemical industry cycle.
 Sales to customers in the U.S. increased 5 percent to $662 million for the quarter, from last year's $628 million. Outside the U.S., sales for the quarter were up 12 percent to $343 million from $305 million a year ago. Total sales were $1.01 billion, up 8 percent from $933 million in the 1991 third quarter. Worldwide earnings from operations were $119 million, a decline of 2 percent from $121 million in 1991.
 For the year to date, sales in the U.S. were $1.94 billion, up 6 percent from last year's $1.82 billion. Sales outside the U.S. were $1.00 billion, unchanged from a year ago. Total Chemicals sales for the year to date were $2.94 billion, up 4 percent over $2.83 billion during the comparable 1991 period. Worldwide earnings from operations were $384 million, a decline of 10 percent from $427 million in 1991.
 Health Segment: Higher unit volumes in the U.S. resulted in sales gains for both the quarter and the year to date, while sales gains outside the U.S. benefited from the favorable effects of foreign currency rate changes. The quarterly and year-to-date performance is understated due to accounting classification differences associated with the Sterling-Elf Sanofi alliance. The year-to-date comparisons were further adversely impacted by the inclusion of two extra months of international business for Sterling Winthrop and L&F Products in the first quarter of 1991 to align company reporting periods. On a comparable basis, the segment posted good gains in sales and earnings for the year to date, with double-digit gains in the third quarter for Sterling Winthrop's consumer products and pharmaceuticals businesses, as well as for Ektachem clinical products. The quarter also saw volume increases for medical x-ray film and improved performance by L&F Products, led by the "Do-It-Yourself" product categories.
 Sales to customers in the U.S. increased 6 percent to $786 million for the quarter, from last year's $744 million. Outside the U.S., sales for the quarter were up 8 percent to $505 million from $468 million a year ago. Total sales were $1.29 billion, up 7 percent from $1.21 billion in the 1991 third quarter. Worldwide earnings from operations were $147 million compared with $18 million in 1991.
 For the year to date, sales in the U.S. were $2.24 billion, up 10 percent from last year's $2.05 billion. Sales outside the U.S. were $1.50 billion, down 9 percent from the $1.64 billion posted a year ago. Total Health sales for the year to date were $3.74 billion, up 1 percent over $3.69 billion reported in 1991. However, on a comparable basis due to accounting classification differences, sales were up 10 percent. Worldwide earnings from operations were $465 million compared with $315 million in 1991.
 Eastman Kodak Company and Subsidiary Companies
 CONSOLIDATED STATEMENT OF EARNINGS
 (in millions, except per share amounts)
 Third Quarter
 1992 1991
 REVENUES
 Sales $5,179 $ 4,926
 Earnings from equity interests
 and other revenues 68 75
 TOTAL REVENUES 5,247 5,001
 COSTS
 Cost of goods sold 2,641 2,501
 Sales, advertising, distribution and
 administrative expenses 1,471 1,370
 Research and development costs 392 367
 Restructuring costs 220 691
 Interest expense 198 210
 Other charges 32 78
 TOTAL COSTS 4,954 5,217
 Earnings (loss) before income taxes 293 (216)
 Provision (benefit) for income taxes 104 (98)
 Earnings (loss) before cumulative
 effect of change in accounting
 principle 189 (118)
 Cumulative effect of change in
 accounting principle - -
 NET EARNINGS (LOSS) $ 189 $ (118)
 Primary earnings (loss) per share
 before cumulative effect of change
 in accounting principle $ .58 $ (.37)
 Cumulative effect of change in
 accounting principle - -
 Primary earnings (loss) per share $ .58 $ (.37)
 Fully diluted earnings (loss) per
 share before cumulative effect of
 change in accounting principle $ .58 $ (.37)
 Cumulative effect of change in
 accounting principle - -
 Fully diluted earnings (loss)
 per share $ .58 $ (.37)
 Cash dividends per share $ .50 $ .50
 SUPPLEMENTAL INFORMATION
 Provision for depreciation $ 361 $ 340
 After-tax exchange gains (losses)
 and effect of translation of
 net monetary items (14) (42)
 Cash dividends declared 163 162
 Capital expenditures 513 387
 Eastman Kodak Company and Subsidiary Companies
 CONSOLIDATED STATEMENT OF EARNINGS
 (in millions, except per share amounts)
 Three Quarters
 1992 1991
 REVENUES
 Sales $14,779 $14,337
 Earnings from equity interests and
 other revenues 221 179
 TOTAL REVENUES 15,000 14,516
 COSTS
 Cost of goods sold 7,562 7,266
 Sales, advertising, distribution and
 administrative expenses 4,264 4,089
 Research and development costs 1,149 1,084
 Restructuring costs 220 691
 Interest expense 611 635
 Other charges 65 89
 TOTAL COSTS 13,871 13,854
 Earnings (loss) before income taxes 1,129 662
 Provision (benefit) for income taxes 434 245
 Earnings (loss) before cumulative
 effect of change in accounting
 principle 695 417
 Cumulative effect of change in
 accounting principle 152 -
 NET EARNINGS $847 $417
 Average number of shares of common
 stock outstanding 325.0 324.7
 Primary earnings per share before
 cumulative effect of change in
 accounting principle $ 2.14 $ 1.28
 Cumulative effect of change in
 accounting principle .47 -
 Primary earnings per share $ 2.61 $ 1.28
 Fully diluted earnings per share
 before cumulative effect of change
 in accounting principle $ 2.09 $ 1.28
 Cumulative effect of change in
 accounting principle .43 -
 Fully diluted earnings per share $ 2.52 $ 1.28
 Cash dividends per share $ 1.50 $ 1.50
 SUPPLEMENTAL INFORMATION
 Provision for depreciation $1,025 $ 956
 After-tax exchange gains (losses)
 and effect of translation of net
 monetary items (24) (26)
 Cash dividends declared 487 486
 Capital expenditures 1,529 1,475
 Cash and marketable securities 708 1,064
 Working capital 1,589 1,736
 SEGMENT INFORMATION: Third Quarter
 (in millions) Percent
 1992 1991 Change
 SALES
 Imaging
 Inside the U.S. $ 754 $ 746 1
 Outside the U.S. 1,226 1,192 3
 TOTAL IMAGING 1,980 1,938 2
 Information
 Inside the U.S. 561 557 1
 Outside the U.S. 421 354 19
 TOTAL INFORMATION 982 911 8
 Chemicals
 Inside the U.S. 662 628 5
 Outside the U.S. 343 305 12
 TOTAL CHEMICALS 1,005 933 8
 Health
 Inside the U.S. 786 744 6
 Outside the U.S. 505 468 8
 TOTAL HEALTH 1,291 1,212 7
 Deduct Intersegment Sales (79) (68)
 TOTAL WORLDWIDE $5,179 $4,926 5
 SEGMENT INFORMATION: Three Quarters
 (in millions) Percent
 1992 1991 Change
 SALES
 Imaging
 Inside the U.S. $2,106 $2,011 5
 Outside the U.S. 3,335 3,172 5
 TOTAL IMAGING 5,441 5,183 5
 Information
 Inside the U.S. 1,658 1,698 (2)
 Outside the U.S. 1,231 1,149 7
 TOTAL INFORMATION 2,889 2,847 1
 Chemicals
 Inside the U.S. 1,935 1,824 6
 Outside the U.S. 1,004 1,004 0
 TOTAL CHEMICALS 2,939 2,828 4
 Health
 Inside the U.S. 2,244 2,047 10
 Outside the U.S. 1,498 1,640 (9)
 TOTAL HEALTH 3,742 3,687 1
 Deduct Intersegment Sales (232) (208)
 TOTAL WORLDWIDE $14,779 $14,337 3
 EARNINGS (LOSS) FROM OPERATIONS
 BY INDUSTRY SEGMENT
 (in millions) Third Quarter
 Excluding Restructuring Costs
 Percent
 1992 1991 Change
 Imaging $ 396 $ 417 (5)
 Information 10 (20)
 Chemicals 119 121 (2)
 Health 161 175 (8)
 TOTAL $ 686 $ 693 (1)
 Including Restructuring Costs
 Percent
 1992 1991 Change
 Imaging $ 313 $ 93 200(a)
 Information (113) (230)
 Chemicals 119 121 (2)
 Health 147 18 200(a)
 TOTAL $ 466 $ 2 200(a)
 (a)indicates greater than 200 percent.
 EARNINGS (LOSS) FROM OPERATIONS
 BY INDUSTRY SEGMENT
 (in millions) Three Quarters
 Excluding Restructuring Costs
 Percent
 1992 1991 Change
 Imaging $ 983 $ 1,002 (2)
 Information (16) 0
 Chemicals 384 427 (10)
 Health 479 472 1
 TOTAL $ 1,830 $ 1,901 (4)
 Including Restructuring Costs
 Percent
 1992 1991 Change
 Imaging $ 900 $ 678 33
 Information (139) (210)
 Chemicals 384 427 (10)
 Health 465 315 48
 TOTAL $ 1,610 $ 1,210 33
 -0- 10/27/92
 /CONTACT: Paul C. Allen of Eastman Kodak Company, 716-724-5802/
 (EK) CO: Eastman Kodak Company ST: New York IN: CHM SU: ERN


KK -- CL022 -- 5603 10/27/92 16:06 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 27, 1992
Words:2466
Previous Article:THE HOME DEPOT APPOINTS NEW OFFICER; ALAN BARNABY PROMOTED TO VICE PRESIDENT, STORE SYSTEMS AND OPERATIONS SUPPORT
Next Article:LASER MEDICAL TECHNOLOGY, INC. ANNOUNCES NEW PATENT GRANTED
Topics:


Related Articles
KODAK RETIREES TOTAL 6,733 UNDER EARLY RETIREMENT PROGRAM Company to take $495 million charge in fourth quarter net earnings
KODAK REPORTS RECORD SALES, LOWER EARNINGS FOR 1991 RESTRUCTURING CHARGES RESULT IN NET LOSS FOR FOURTH QUARTER
KODAK REPORTS RECORD SALES, HIGHER EARNINGS FOR 1992 SECOND QUARTER
KODAK ANNOUNCES THIRD QUARTER CHARGES; ACCOUNTING CHANGE FOR YEAR-TO-DATE
KODAK REPORTS HIGHER SALES, EARNINGSFOR 1992 AND FOURTH QUARTER
KODAK POSTS OPERATING GAINS IN IMAGING AND INFORMATION BUT MANDATORY ACCOUNTING CHANGE RESULTS IN NET LOSS
KODAK REPORTS SLIGHTLY LOWER SALES,
KODAK ISSUES ADVISORY FOR THIRD QUARTER EARNINGS ESTIMATE
KODAK REPORTS CASH FLOW GAINS, STRONG OPERATING RESULTS
HIGHER SALES, LOWER EARNINGS REPORTED BY KODAK FOR THIRD QUARTER

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters