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KODAK REPORTS RECORD SALES, HIGHER EARNINGS FOR 1992 SECOND QUARTER

 KODAK REPORTS RECORD SALES, HIGHER EARNINGS
 FOR 1992 SECOND QUARTER
 ROCHESTER, N.Y., July 28 /PRNewswire/ -- Eastman Kodak Company (NYSe: EK) today reported record second quarter sales and higher earnings, resulting in higher sales and moderately lower earnings for the first half of 1992.
 Quarterly sales were $5.19 billion, an increase of 4% from $4.99 billion in the 1991 second quarter, while net earnings of $361 million, or $1.11 per share, were up 1% from $357 million or $1.10 per share a year ago.
 For the half-year, sales totaled $9.60 billion, up 2% from the $9.41 billion posted a year ago. Net earnings were $506 million, or $1.56 per share, down 5% from $535 million or $1.65 per share in the first half of 1991.
 Commenting on the results, Kodak chairman and chief executive officer Kay R. Whitmore said: "Strong June sales were a major factor in bringing quarterly earnings to a point slightly higher than those reported at this time a year ago. This surge in the final four weeks was widespread, with many products posting double-digit revenue gains, including color films and papers, copiers, clinical diagnostics, plastics, and chemicals.
 "For the quarter, the general advance in Imaging segment sales was led by consumer products, particularly by color films and papers which posted good sales gains. Trade and consumer response to new Kodak Gold Plus color negative films was especially encouraging.
 "In the Health segment, sales of diagnostic imaging films and equipment, clinical and L&F products all increased. Sterling Winthrop sales were level, but their rate of increase would have been up moderately had it not been for the fact that certain Sterling results are no longer consolidated due to the alliance with Sanofi.
 "In the Information segment, core business units serving graphic arts and office markets reported higher revenues and achieved higher earnings. Good performance in these areas was more than offset by negative results elsewhere in the segment.
 "Gains in sales of plastics and chemicals were highlights in the Chemical segment. Here, it is clear that recovery in the global chemical industry is slower than anticipated. As this industry continues its modest upturn and with the expectation of some degree of pricing relief, results should improve.
 "Earnings benefited from the positive effects of higher volume, continued gains in manufacturing productivity, and close control of general expenses. Fluctuation in currency exchange rates was not a matter of significance in the quarterly earnings comparisons.
 "The results we delivered for the first half were consistent with our 1992 operating plan and this gives us confidence that the year as a whole will deliver what we expect: Moderately higher sales and good gains in earnings.
 "Further downstream, we expect earnings to benefit from the company's increased emphasis on areas of particular Kodak strength. In the Information segment, we are building towards full shipments of the 1500/2100 series of copiers, which are clearly state-of-the art, and we have announced a strengthened alliance with Canon in office imaging. Also, we have made public our intent to sell 10 peripheral business units operating largely in the information industry. These moves drive for the improvements we need to be successful in this part of the business."
 IMAGING SEGMENT: Sales to customers in the U.S. recorded moderate increases for the quarter and the year to date. Outside the U.S., good gains in the quarter resulted principally from increased unit volumes. For the year to date, sales increased moderately as unit volume gains were partially offset by lower effective selling prices. Sales outside the U.S. benefited from the inclusion in 1992 of sales of photofinishing units acquired in Germany; excluding these sales, increases outside the U.S. would have been moderate for the quarter and slight for the year to date. Worldwide sales increases in the second quarter and half year were led by Kodacolor films and Ektacolor papers.
 Imaging earnings for the quarter increased as higher volumes and wide-scale productivity gains more than offset cost escalation and lower effective selling prices. Year-to-date earnings were level, as higher volumes and manufacturing productivity gains were offset by cost escalation, increased advertising and promotion costs, lower effective selling prices and higher research and development expenditures.
 INFORMATION SEGMENT: Sales to customers in the U.S. decreased slightly for the quarter and year to date due to the inclusion in 1991 of revenues of divested units. Outside the U.S., sales posted moderate increases for the quarter and a slight increase year to date.
 Although core business results improved, Information Segment earnings were down for the quarter and year to date compared with last year. The adverse impact of cost escalation and lower volumes was partially offset by lower selling, advertising, distribution and administrative costs and lower research and development costs.
 CHEMICAL SEGMENT: Sales to customers in the U.S. recorded a slight increase for the quarter and a moderate increase year to date. Increased unit volumes contributed to the favorable quarterly comparison, while for the year to date unit volumes were slightly offset by lower effective selling prices. Outside the U.S., sales decreased slightly in the quarter and were down year to date, primarily due to lower unit volumes. For the first half, worldwide sales of chemicals and plastics increased moderately.
 Earnings for the Chemical Segment decreased in the quarter primarily due to higher manufacturing costs. Year-to-date earnings were also lower as the benefits from increased unit volumes were more than offset by higher manufacturing costs, higher sales, advertising, distribution and administrative costs, and lower effective selling prices.
 HEALTH SEGMENT: Sales to customers in the U.S. recorded moderate increases for the quarter and significant increases year to date primarily due to volume gains. Outside the U.S., slight increases for the quarter were due to the favorable effects of foreign currency rate changes. Year-to-date results continued to be adversely affected by the inclusion of two additional months of Sterling Winthrop Inc. sales recorded in the first quarter of 1991 and the absence of certain sales not consolidated due to the Sanofi alliance. The Health Segment posted good gains for the half year, with increases by all business units.
 Earnings for the quarter were lower than last year as the favorable effects of increased unit volumes and manufacturing productivity gains were more than offset by cost escalation, higher sales, advertising, distribution and administrative costs, and increased research and development expenditures. Year-to-date earnings increased with higher unit volumes and productivity gains more than offsetting cost escalation, increased sales, advertising, distribution and administrative costs and increased research and development expenditures.
 Eastman Kodak Company and Subsidiary Companies
 CONSOLIDATED STATEMENT OF EARNINGS
 (in millions, except per share amounts)
 Second Quarter
 1992 1991
 REVENUES
 Sales $5,190 $4,989
 Earning from equity interests and
 other revenues 84 44
 TOTAL REVENUES 5,274 5,033
 COSTS
 Cost of goods sold 2,640 2,515
 Sales, advertising, distribution and
 administrative expenses 1,438 1,355
 Research and development costs 377 365
 Interest expense 207 210
 Other charges 16 5
 TOTAL COSTS 4,678 4,450
 Earnings before income taxes 596 583
 Provision for income taxes 235 226
 NET EARNINGS $361 $357
 Primary earnings per share $ 1.11 $ 1.10
 Fully diluted earnings per share $ 1.06 $ 1.09
 Cash dividends per share $ .50 $ .50
 SUPPLEMENTAL INFORMATION
 Provision for depreciation $ 337 $ 318
 After-tax exchange gains (losses) and effect
 of translation of net monetary items 1 6
 Cash dividends declared 162 162
 Capital expenditures 538 577
 SEGMENT INFORMATION Second Quarter
 (in millions) 1992 1991 Change
 SALES
 Imaging
 Inside the U.S. $ 857 $ 811 +6%
 Outside the U.S. 1,182 1,079 +10%
 TOTAL IMAGING 2,039 1,890 +8%
 Information
 Inside the U.S. 582 609 (4)%
 Outside the U.S. 419 395 +6%
 TOTAL INFORMATION 1,001 1,004 0%
 Chemicals
 Inside the U.S. 642 619 +4%
 Outside the U.S. 331 339 (2)%
 TOTAL CHEMICALS 973 958 +2%
 Health
 Inside the U.S. 737 703 +5%
 Outside the U.S. 514 506 +2%
 TOTAL HEALTH 1,251 1,209 +3%
 Deduct Intersegment Sales (74) (72)
 TOTAL WORLDWIDE $5,190 $4,989 +4%
 EARNINGS FROM OPERATIONS
 by Industry Segment
 (in millions)
 Imaging $ 483 $ 412 +17%
 Information (31) 19
 Chemicals 130 151 (14)%
 Health 166 175 (5)%
 TOTAL EARNINGS FROM
 OPERATIONS $ 748 $ 757 (1)%
 Eastman Kodak Company and Subsidiary Companies
 CONSOLIDATED STATEMENT OF EARNINGS
 (in millions, except per share amounts)
 First Half-Year
 1992 1991
 REVENUES
 Sales $9,600 $9,411
 Earning from equity interests and
 other revenues 153 104
 TOTAL REVENUES 9,753 9,515
 COSTS
 Cost of goods sold 4,921 4,765
 Sales, advertising, distribution and
 administrative expenses 2,793 2,719
 Research and development costs 757 717
 Interest expense 413 425
 Other charges 33 11
 TOTAL COSTS 8,917 8,637
 Earnings before income taxes 836 878
 Provision for income taxes 330 343
 NET EARNINGS $506 $535
 Average number of share of common
 stock outstanding 325.0 324.5
 Primary earnings per share $ 1.56 $ 1.65
 Fully diluted earnings per share $ 1.51 $ 1.64
 Cash dividends per share $ 1.00 $ 1.00
 SUPPLEMENTAL INFORMATION
 Provision for depreciation $ 664 $ 616
 After-tax exchange gains (losses) and effect
 of translation of net monetary items (10) 16
 Cash dividends declared 324 324
 Capital expenditures 1,016 1,088
 Cash and marketable securities 691 720
 Working capital 1,624 1,172
 SEGMENT INFORMATION First Half-Year
 (in millions) 1992 1991 Change
 SALES
 Imaging
 Inside the U.S. $1,352 $1,265 +7%
 Outside the U.S. 2,109 1,980 +7%
 TOTAL IMAGING 3,461 3,245 +7%
 Information
 Inside the U.S. 1,097 1,141 (4)%
 Outside the U.S. 810 795 +2%
 TOTAL INFORMATION 1,907 1,936 (1)%
 Chemicals
 Inside the U.S. 1,273 1,196 +6%
 Outside the U.S. 661 699 (5)%
 TOTAL CHEMICALS 1,934 1,895 +2%
 Health
 Inside the U.S. 1,458 1,303 +12%
 Outside the U.S. 993 1,172 (15)%
 TOTAL HEALTH 2,451 2,475 (1)%
 Deduct Intersegment Sales (153) (140)
 TOTAL WORLDWIDE $9,600 $9,411 +2%
 EARNINGS FROM OPERATIONS
 by Industry Segment
 (in millions)
 Imaging $ 587 $ 585 0%
 Information (26) 20
 Chemicals 265 306 (13)%
 Health 318 297 +7%
 TOTAL EARNINGS FROM
 OPERATIONS $ 1,144 $ 1,208 (5)%
 -0- 7/28/92
 /CONTACT: Paul C. Allen of Eastman Kodak Company, 716-724-5802/
 (EK) CO: Eastman Kodak Company ST: New York IN: CHM SU: ERN


KK -- CL023 -- 4259 07/28/92 16:46 EDT
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