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KODAK POSTS OPERATING GAINS IN IMAGING AND INFORMATION BUT MANDATORY ACCOUNTING CHANGE RESULTS IN NET LOSS

 ROCHESTER, N.Y., April 28 /PRNewswire/ -- Eastman Kodak Company (NYSE: EK) today reported first quarter sales of $4.44 billion, an increase of 1 percent over the $4.41 billion reported in 1992, while posting a net loss of $1.88 billion or $5.75 per share as a result of the adoption of two new financial accounting standards relating to post employment benefits.
 Earnings before the cumulative effect of the accounting changes were $149 million or $.46 per share, compared with $145 million or $.45 per share in the first quarter of 1992, equivalent to a 3 percent increase.
 Adoption of the new accounting standards resulted in a one-time after-tax charge of $2.03 billion or $6.21 per share in the first quarter of 1993 and an ongoing quarterly after-tax charge of $21 million or $.07 per share. The charges to 1993 first quarter earnings relate to liabilities for the projected cost of health care benefits for current and future retirees, but have no effect on the company's cash flow.
 Restated 1992 first quarter net earnings of $297 million or $.92 per share reflect an additional $152 million or $.47 per share due to the adoption in 1992 of a financial accounting standard relating to income taxes.
 Commenting on the results, Kodak chairman, president and chief executive officer Kay R. Whitmore said: "In operating terms, the company's performance in the first quarter was satisfactory. This beginning gives us confidence that we can reach our financial objectives for 1993, which call for moderate gains in sales, a solid increase in earnings from operations and positive cash flow.
 "In the Imaging segment, higher volume and close control of costs more than offset the negative effect of somewhat lower selling prices and general inflation. Volume gains in consumer imaging products were encouraging, particularly in light of the fact that results have yet to reflect new Kodak products welcomed by the trade on announcement in February. Shipments of Kodak copiers ran well ahead to key improved performance in the Information segment.
 "While earnings gains for Imaging operations were based partly on exceptional demand in the month of March, it is clear that cost reduction efforts here and in the Information segment are beginning to pay off.
 "In the Health segment, shipments of ethical drugs, clinical diagnostics and over-the-counter medicines paced the growth, with a more moderate increase in demand for diagnostic imaging films and equipment.
 In the Chemical group, sales were essentially level as the chemical industry continued in recession in several world markets."
 IMAGING SEGMENT: Worldwide earnings from operations were $133 million, up 28 percent over the $104 million reported in 1992 based on sales of $1.40 billion, which compared with $1.42 billion at this time last year. Benefits from increased unit volume, decreased marketing and administrative costs, lower research and development spending and manufacturing productivity gains overcame the effect of lower effective selling prices and general inflation.
 Worldwide volume gains were led by Kodacolor films, Ektacolor papers and single use cameras. Sales to customers in the U.S. were up 1 percent to $502 million from last year's $495 million, while outside the U.S., sales for the quarter were down 4 percent to $894 million from $927 million a year ago. Sales to customers in the U.S. for the first quarter were essentially level compared with last year as increased unit volumes were offset by lower effective selling prices. Outside the U.S., a slight decrease in sales was attributable to the unfavorable effects of foreign currency rate changes and lower effective selling prices, partially offset by a slight increase in unit volumes.
 INFORMATION SEGMENT: Worldwide earnings from operations were $43 million compared with $5 million in the 1992 first quarter, based on sales of $901 million which compared with $906 million a year ago. Lower research and development spending and reduced marketing and administrative expenses more than offset the effect of general inflation.
 Worldwide volume gains were primarily due to sales of Office Imaging products, particularly office copiers. Sales to customers in the U.S. increased 1 percent to $518 million compared with last year's $515 million, while sales outside the U.S. were down 2 percent to $383 million from $391 million a year ago. Sales inside the U.S. were essentially level compared with the first quarter of 1992. Outside the U.S., sales declined slightly as the unfavorable effects of foreign currency rate changes and lower effective selling prices more than offset increased unit volumes.
 CHEMICAL SEGMENT: Worldwide earnings from operations were $112 million, a decline of 17 percent from $135 million in the 1992 first quarter, based on sales of $973 million which compared with $961 million last year. Charges for the company's exit from the Kodel polyester staple fiber business and generally higher operating costs were the principle cause for the earnings decline.
 Sales of specialty chemicals recorded a moderate increase, while industrial chemicals declined slightly on a worldwide basis. Sales to customers in the U.S. increased 5 percent to $663 million from last year's $631 million, while sales outside the U.S. were down 6 percent to $310 million from $330 million a year ago. Quarterly sales in the U.S. posted a moderate increase over last year due to increased unit volumes and slightly higher effective selling prices. Outside the U.S., sales were down due to the unfavorable effects of foreign currency rate changes and lower unit volumes.
 HEALTH SEGMENT: Worldwide earnings from operations were $118 million, down 22 percent from $152 million in the 1992 first quarter, while sales were $1.25 billion, up 4 percent from $1.20 billion in 1992. The decrease in earnings from operations was due to introductory costs associated with new Bayer Select analgesics, planned increases in pharmaceutical R&D spending, and comparison with a period of last year when the Health Sciences unit experienced exceptional manufacturing productivity.
 Worldwide sales increases were led by Sterling Winthrop and Clinical Diagnostics. Sales to customers in the U.S. increased 1 percent to $731 million from last year's $721 million, while sales outside the U.S. were up 8 percent to $515 million from $479 million a year ago. While sales to U.S. customers were level when compared with a year ago, good gains elsewhere were due to solid increases in unit volumes, partially offset by the unfavorable effects of foreign currency rate changes.
 Eastman Kodak Company and Subsidiary Companies
 CONSOLIDATED STATEMENT OF EARNINGS
 (in millions, except per share amounts)
 First Quarter
 1993 1992
 REVENUES
 Sales $4,442 $ 4,410
 Earnings from equity interests
 and other revenues 86 69
 TOTAL REVENUES 4,528 4,479
 COSTS
 Cost of goods sold 2,347 2,281
 Marketing and administrative expenses 1,336 1,355
 Research and development costs 352 380
 Interest expense 192 206
 Other charges 56 17
 TOTAL COSTS 4,283 4,239
 Earnings before income taxes 245 240
 Provision for income taxes 96 95
 Earnings before cumulative effect of
 changes in accounting principle 149 145
 Cumulative effect of changes in
 accounting principle (2,029) 152
 NET EARNINGS (LOSS) $(1,880) $ 297
 Average number of shares of common
 stock outstanding 326.7 324.9
 Primary earnings per share before
 cumulative effect of changes in
 accounting principle $ .46 $ .45
 Cumulative effect of changes in
 accounting principle (6.21) .47
 Primary earnings (loss) per share $(5.75) $ .92
 Fully diluted earnings per share
 before cumulative effect of changes in
 accounting principle $ .46 $ .45
 Cumulative effect of changes in
 accounting principle (6.21) .43
 Fully diluted earnings (loss) per share $(5.75) $ .88
 Cash dividends per share $ .50 $ .50
 SUPPLEMENTAL INFORMATION
 Provision for depreciation $ 316 $ 327
 After-tax exchange gains (losses) and
 effect of translation of net monetary
 items (26) (11)
 Cash dividends declared 163 162
 Capital expenditures 415 478
 Cash and marketable securities 640 1,200
 Working capital 1,021 1,212
 SEGMENT INFORMATION First Quarter
 (in millions) Percent
 1993 1992 Change
 SALES
 Imaging
 Inside the U.S. $ 502 $ 495 1
 Outside the U.S. 894 927 (4)
 TOTAL IMAGING 1,396 1,422 (2)
 Information
 Inside the U.S. 518 515 1
 Outside the U.S. 383 391 (2)
 TOTAL INFORMATION 901 906 (1)
 Chemicals
 Inside the U.S. 663 631 5
 Outside the U.S. 310 330 (6)
 TOTAL CHEMICALS 973 961 1
 Health
 Inside the U.S. 731 721 1
 Outside the U.S. 515 479 8
 TOTAL HEALTH 1,246 1,200 4
 Deduct Intersegment Sales (74) (79)
 TOTAL WORLDWIDE $4,442 $4,410 1
 EARNINGS FROM OPERATIONS
 by Industry Segment
 (in millions)
 First Quarter
 Percent
 1993 1992 Change
 Imaging $ 133 $ 104 28
 Information 43 5
 Chemicals 112 135 (17)
 Health 118 152 (22)
 TOTAL $ 406 $ 396 3
 -0- 4/28/93
 /CONTACT: Paul C. Allen, Media Relations, Eastman Kodak Company, 716-724-5802/
 (EK)


CO: Eastman Kodak Company ST: New York IN: CHM LEI SU: ERN

BM -- CL001 -- 1762 04/28/93 08:04 EDT
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