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KODAK REPORTS LEVEL SALES, LOWER EARNINGS FOR 1992 FIRST QUARTER

 KODAK REPORTS LEVEL SALES, LOWER EARNINGS
 FOR 1992 FIRST QUARTER
 ROCHESTER, N.Y., April 28 /PRNewswire/ -- Eastman Kodak Company (NYSE: EK) today reported first quarter sales of $4.4 billion in 1992, essentially level with its 1991 first quarter, and net earnings of $145 million, or $.45 per share, down 19 percent from $178 million or $.55 per share a year ago.
 Commenting on the results, Kodak chairman and chief executive officer Kay R. Whitmore said, "First quarter results were hardly satisfying. Respectable margins in Health and Chemicals were accompanied by poor rates of return in Imaging and Information, where problem areas are being vigorously addressed.
 "Earnings were affected negatively by cost escalation, less favorable rates of currency exchange, lower selling prices, higher research and development expenditures, and in Imaging, unusually high selling and advertising costs, the benefits of which began to appear in brisk March sales of consumer imaging products. Higher marketing costs were anticipated in what was a period of unseasonably heavy promotional activity.
 "For the quarter, consumer, professional and graphic imaging products all posted moderate volume gains, while plastics and chemicals registered solid volume gains. Medical imaging and clinical diagnostic products posted good gains in shipments. Sales by L&F Products were level and those of Sterling Winthrop were lower due solely to the fact that their 1991 first quarter included five reporting months for units outside the U.S.; without this aberration, these units would have shown good gains.
 "Response to the new Kodak Gold Plus color films was encouraging. Another positive sign is enthusiastic trade response, in commercial as well as consumer markets, to the coming availability of the Photo CD System.
 "Concerning the balance of the year, we look forward to better results with the expectation that sales will continue to recover, particularly in the second half, and that earnings will benefit from actions to restore operating margins to more satisfactory levels."
 IMAGING SEGMENT: In the Imaging Segment, sales to customers in the U.S. recorded good gains compared with the first quarter of 1991, due to increased unit volumes. U.S. sales increases were led by solid gains in Kodacolor films and moderate increases in Ektacolor papers. For customers outside the U.S., slight increases in the quarter were attributable to moderate gains in unit volume, partially offset by the unfavorable effects of foreign currency rate changes and lower effective selling prices.
 Worldwide earnings from operations in Imaging were lower due to cost escalation, increased advertising and promotion costs, lower effective selling prices, higher research and development expenditures and the unfavorable effects of foreign currency rate changes, which more than offset the benefits of higher unit volumes and continued productivity gains in sensitized goods manufacturing.
 INFORMATION SEGMENT: Sales in the U.S. declined slightly compared with the first quarter of 1991 primarily due to lower unit volumes. Outside the U.S., sales declined slightly as the unfavorable effects of foreign currency rate changes more than offset increased unit volumes.
 Information Segment operating earnings increased slightly over the first quarter of 1991, as lower sales, advertising, distribution and administrative activity costs, and lower research and development expenditures were partially offset by cost escalation.
 CHEMICAL SEGMENT: Sales to customers in the U.S. posted good gains compared with the first quarter of last year due to increased unit volumes, partially offset by slightly lower effective selling prices. Outside the U.S., sales were down due to lower unit volumes and the unfavorable effects of foreign currency rate changes.
 Earnings from operations in the Chemicals Segment decreased in comparison with a year ago, as the benefits from higher unit volumes were more than offset by lower effective selling prices, higher sales, advertising, distribution and administrative activity costs, and the unfavorable effects of foreign currency rate changes.
 HEALTH SEGMENT: Sales to customers in the U.S. recorded strong increases, primarily due to volume gains, when compared with a year ago. Sales to customers outside the U.S. were substantially lower, primarily due to the inclusion in 1991 of revenues from two additional months of Sterling Winthrop Inc. sales. Without these two extra months, sales outside the U.S. would still have shown a slight decline because sales of certain Sterling/Sanofi units are not consolidated in company sales results. Excluding the two extra months in 1991, all business units posted sales gains.
 Health Segment operating earnings recorded excellent gains, as the favorable effects of increased unit volumes to customers inside the U.S., manufacturing productivity gains and higher effective selling prices more than offset cost escalation and increased sales, advertising, distribution and administrative activity costs.
 Eastman Kodak Company and Subsidiary Companies
 CONSOLIDATED STATEMENT OF EARNINGS
 (in millions, except per share amounts)
 First Quarter
 1992 1991
 ---- ----
 REVENUES
 Sales $4,410 $4,422
 Earning from equity interests and
 other revenues 69 60
 ----- -----
 TOTAL REVENUES 4,479 4,482
 ----- -----
 COSTS
 Cost of goods sold 2,281 2,250
 Sales, advertising, distribution and
 administrative expenses 1,355 1,364
 Research and development costs 380 352
 Interest expense 206 215
 Other charges 17 6
 ----- -----
 TOTAL COSTS 4,239 4,187
 ----- -----
 Earnings before income taxes 240 295
 Provision for income taxes 95 117
 ----- -----
 NET EARNINGS $ 145 $ 178
 ----- -----
 Average number of share of common
 stock outstanding 324.9 324.5
 Net earnings per share $ .45 $ .55
 Cash dividends per share $ .50 $ .50
 -----------------------------------------------------------
 SUPPLEMENTAL INFORMATION
 Provision for depreciation $ 327 $ 298
 After-tax exchange gains (losses) and effect
 of translation of net monetary items (11) 10
 Cash dividends declared 162 162
 Capital expenditures 478 511
 Cash and marketable securities 1,200 719
 Working capital 1,275 1,295
 -----------------------------------------------------------
 SEGMENT INFORMATION
 (in millions)
 First Quarter
 1992 1991 Pct Change
 SALES
 Imaging
 Inside the U.S. $ 495 $ 454 9
 Outside the U.S. 927 901 3
 ------ ------ -----
 TOTAL IMAGING 1,422 1,355 5
 ------ ------ -----
 Information
 Inside the U.S. 515 532 (3)
 Outside the U.S. 391 400 (2)
 ------ ------ -----
 TOTAL INFORMATION 906 932 (3)
 ------ ------ -----
 Chemicals
 Inside the U.S. 631 577 9
 Outside the U.S. 330 360 (8)
 ------ ------ -----
 TOTAL CHEMICALS 961 937 3
 ------ ------ -----
 Health
 Inside the U.S. 721 600 20
 Outside the U.S. 479 666 (28)
 ------ ------ -----
 TOTAL HEALTH 1,200 1,266 (5)
 ------ ------ -----
 Deduct Intersegment Sales (79) (68)
 ------ ------ -----
 TOTAL WORLDWIDE $4,410 $4,422 0
 ------ ------ -----
 ------ ------ -----
 -------------------------------------------------------------
 First Quarter
 1992 1991 Change
 EARNINGS FROM OPERATIONS
 by Industry Segment
 (in millions)
 Imaging $ 104 $ 173 (40)
 Information 5 1 --
 Chemicals 135 155 (13)
 Health 152 122 25
 ------ ------ -----
 TOTAL EARNINGS FROM
 OPERATIONS $ 396 $ 451 (12)
 ------ ------ -----
 ------ ------ -----
 -0- 4/28/92
 /CONTACT: Paul C. Allen of The Eastman Kodak Company, 716-724-5802/
 (EK) CO: Eastman Kodak Company ST: New York IN: CHM SU: ERN


KK -- CL022 -- 3978 04/28/92 16:02 EDT
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