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KODAK REPORTS HIGHER SALES, EARNINGSFOR 1992 AND FOURTH QUARTER

 ROCHESTER, N.Y., Feb. 2 /PRNewswire/ -- Eastman Kodak Company (NYSE: EK) today reported higher sales and net earnings for both its fourth quarter and the year.
 Worldwide sales set a record of $20.18 billion for 1992, up 4 percent over the $19.42 billion posted in 1991. Net earnings were $1.15 billion or $3.53 per share, compared with $17 million or $.05 per share a year ago. The 1992 net earnings included $152 million or $.47 per share reflecting the beneficial impact of a change in accounting for income taxes, which was nearly offset by restructuring charges of $141 million after-tax or $.43 per share. The company's 1991 net earnings were reduced by restructuring charges of $1.03 billion after-tax or $3.18 per share.
 For the fourth quarter, worldwide sales were $5.40 billion, up 6 percent from $5.08 billion in 1991, while net earnings were $299 million or $.92 per share, compared with a loss of $400 million or $1.23 per share a year ago. The 1991 fourth quarter net earnings were reduced by restructuring charges of $597 million after-tax or $1.84 per share.
 Commenting on 1992 results, Kodak chairman and chief executive officer Kay R. Whitmore said: "Recovery in the U.S. economy was slow to develop in 1992 and recession in a number of overseas markets further dampened general demand. As a result, the increase in Kodak sales was modest. With sluggish volume and cost inflation putting pressure on operating margins, the sale of certain investments was a major factor in the net earnings gain.
 "A highlight of the year was strongly positive cash flow and a $1.25 billion reduction in our debt.
 "While the Imaging segment reported higher sales and earnings, these results fell short of plan. On a fully comparable basis, the Health segment reported a double-digit sales gain with earnings up slightly. All Health segment businesses reported sales increases. Losses in the Information segment were reduced through cost cutting and the sale of certain units of this business. The Chemical segment reported higher sales and modestly lower earnings due to higher costs, the mix of business and the effect of a prolonged downturn in this business sector.
 "Our action plan for 1993, and for years to come, is based on the concept of 'right sizing' in a process that will better align our structural costs with realistic volume projections. We will view the world as it is and not as we might wish it to be. And our view will be fixed on increasing shareowner value.
 "The benefits of this mindset will become apparent very soon. We will see the beginnings after the first quarter, when about 2,000 employees will be separated. On an individual basis, separation costs will not be as large as those experienced in the past. This move and other cost reduction efforts will produce pre-tax savings of more than $200 million in 1993 and substantially more in subsequent years.
 "The 'look' of our earnings in the first quarter of 1993 and for the year will also be affected by an accounting rule that requires U.S. companies to record the cost of health care benefits for future as well as current retirees. This change will not affect our cash position or our ability to pay attractive dividends. In addition to the one-time charge in the first quarter of 1993, there will be a reduction in annual earnings per share of approximately 30 cents.
 "With better volume in chemical products, continuing gains in our health care business, and a more focused approach to imaging, we believe we can deliver positive cash flow and a solid increase in operating earnings in 1993."
 IMAGING SEGMENT: Worldwide sales for the fourth quarter were $1.97 billion, up 4 percent from $1.89 billion in the 1991 fourth quarter. Earnings from operations were $316 million compared with a loss of $189 million in 1991. (Fourth quarter 1992 earnings from operations were up 13 percent with restructuring charges excluded from the 1991 fourth quarter.)
 Worldwide Imaging sales for the year were $7.42 billion, up 5 percent over $7.08 billion in 1991. Earnings from operations were $1.22 billion compared with $489 million in 1991. (Excluding restructuring charges for both years, earnings from operations were $1.30 billion, up 1 percent from $1.28 billion a year ago.)
 For the year, worldwide sales increases were led by Kodacolor films and Ektacolor papers. Sales to customers in the U.S. increased slightly over 1991 due to higher unit volumes and higher effective selling prices. Outside the U.S., sales registered a moderate increase as higher unit volumes and the favorable effects of foreign currency rate changes were partially offset by lower effective selling prices. The increase in operating earnings reflected manufacturing productivity gains and increased unit volumes which more than offset the effects of cost escalation, lower effective selling prices, increased marketing and administrative costs and higher research and development expenditures.
 Sales to customers in the U.S. for the fourth quarter increased 3 percent to $865 million from last year's $836 million, while outside the U.S., sales for the quarter were up 5 percent to $1.11 billion from $1.06 billion a year ago. For the year, sales in the U.S. were $2.97 billion, up 4 percent from $2.85 billion in 1991, while sales outside the U.S. were $4.44 billion, a 5 percent increase from the $4.23 billion posted a year ago.
 INFORMATION SEGMENT: Worldwide sales for the fourth quarter were $1.17 billion, up 5 percent from $1.12 billion in the 1991 fourth quarter. The loss from operations was $12 million compared with a loss of $478 million in 1991. (Excluding fourth quarter restructuring charges in 1991, the fourth quarter 1991 loss was $65 million.)
 Worldwide Information sales for the year were $4.06 billion, up 2 percent over $3.97 billion in 1991. The loss from operations was $151 million, compared with a loss of $688 million in 1991. (Excluding restructuring charges for both years, the loss from operations was $28 million, compared with $65 million a year ago.)
 Sales inside the U.S. were essentially level for the year compared with 1991. Outside the U.S., sales recorded a moderate increase primarily due to higher unit volumes and the favorable effects of foreign currency rate changes. The segment's operating loss was lower than in 1991, with reduced marketing and administrative costs and lower research and development spending more than offsetting cost inflation.
 Sales to customers in the U.S. in the fourth quarter increased 5 percent to $717 million compared with last year's $682 million, while sales outside the U.S. were up 4 percent to $457 million from $439 million a year ago. For the year, sales in the U.S. were $2.38 billion, level with last year's, while sales outside the U.S. were $1.69 billion, a 6 percent increase from the $1.59 billion posted a year ago.
 CHEMICAL SEGMENT: Worldwide sales for the quarter were $988 million, up 8 percent, from $912 million in the 1991 fourth quarter. Earnings from operations were $110 million, a decline of 1 percent from $111 million in 1991.
 Worldwide Chemical sales for the year were $3.93 billion, up 5 percent over $3.74 billion in 1991. Earnings from operations were $494 million, a decline of 8 percent from $538 million in 1991.
 For the year, moderate increases in sales to customers in the U.S. and slight sales increases outside the U.S. were due to higher unit volumes. Worldwide sales of specialty chemicals recorded double-digit increases for the year, while industrial chemicals were level. Operating earnings decreased in comparison with 1991, as higher costs were only partially offset by increased unit volumes and higher effective selling prices.
 Sales to customers in the U.S. in the fourth quarter increased 7 percent to $667 million from last year's $625 million, while sales outside the U.S. were up 12 percent to $321 million from $287 million a year ago. For the year, sales in the U.S. were $2.60 billion, up 6 percent from last year's $2.45 billion, while sales outside the U.S. were $1.33 billion, up 3 percent from $1.29 billion a year ago.
 HEALTH SEGMENT: Worldwide sales for the quarter were $1.34 billion, up 9 percent from $1.23 billion in 1991. Earnings from operations were $123 million compared with $118 million in 1991. (Fourth quarter 1991 earnings from operations were $151 million with restructuring charges excluded.)
 Worldwide Health sales for the year were $5.08 billion, up 3 percent over the $4.92 billion reported in 1991. However, if 1991 results were restated on a comparable basis with 1992, sales would be up 10 percent. Earnings from operations were $588 million compared with $433 million in 1991. (Excluding restructuring charges, operating earnings were $602 million in 1992 compared with $623 million in the previous year. However, on a fully comparable basis the 1992 earnings would have been 2 percent higher than those of 1991, with higher volume more than offsetting planned increases in marketing expense and research and development spending.)
 Sales to customers in the U.S. in 1992 recorded good gains over 1991 primarily due to volume gains. Sales comparisons outside the U.S. were adversely affected by the inclusion of two additional months of Sterling Winthrop Inc. sales recorded in 1991 to align company reporting periods and the exclusion of certain Sterling-Elf Sanofi units not consolidated in company sales results in 1992. On a comparable basis, 1992 sales outside the U.S. would have registered solid gains over 1991. All business units posted sales gains for 1992 on a comparable basis with 1991.
 Fourth quarter sales were paced by volume growth in x-ray films, continued double-digit growth in the Ektachem clinical chemistry business, significant increases in pharmaceuticals and consumer health, including the launch of the Bayer Select line with continued growth in traditional Bayer aspirin products, and double-digit growth in U.S. sales of "Do-It-Yourself" products.
 For the quarter, sales to customers in the U.S. increased 10 percent to $783 million from last year's $713 million, while sales outside the U.S. were up 8 percent to $556 million from $517 million a year ago. For the year, sales in the U.S. were $3.03 billion, up 10 percent from last year's $2.76 billion, while sales outside the U.S. were $2.05 billion, down 5 percent from the $2.16 billion posted a year ago.
 Eastman Kodak Company and Subsidiary Companies
 CONSOLIDATED STATEMENT OF EARNINGS
 (in millions, except per share amounts)
 Fourth Quarter
 1992 1991
 REVENUES
 Sales $5,404 $ 5,082
 Earnings from equity interests
 and other revenues 173 76
 TOTAL REVENUES 5,577 5,158
 COSTS
 Cost of goods sold 2,830 2,719
 Sales, advertising, distribution and
 administrative expenses 1,605 1,476
 Research and development costs 438 410
 Interest expense 202 209
 Restructuring costs - 914
 Other charges 30 81
 TOTAL COSTS 5,105 5,809
 Earnings (loss) before income taxes 472 (651)
 Provision (benefit) for income taxes 173 (251)
 Earnings (loss) before cumulative
 effect of change in accounting
 principle 299 (400)
 Cumulative effect of change in
 accounting principle - -
 NET EARNINGS (LOSS) $ 299 $ (400)
 Primary earnings (loss) per share
 before cumulative effect of change
 in accounting principle $ .92 $(1.23)
 Cumulative effect of change in
 accounting principle - -
 Primary earnings (loss) per share $ .92 $(1.23)
 Fully diluted earnings (loss) per
 share before cumulative effect of
 change in accounting principle $ .89 $(1.23)
 Cumulative effect of change in
 accounting principle - -
 Fully diluted earnings (loss) per
 share $ .89 $(1.23)
 Cash dividends per share $ .50 $ .50
 SUPPLEMENTAL INFORMATION
 Provision for depreciation $ 368 $ 373
 After-tax exchange gains (losses)
 and effect of translation of
 net monetary items (8) (57)
 Cash dividends declared 163 163
 Capital expenditures 563 660
 Eastman Kodak Company and Subsidiary Companies
 CONSOLIDATED STATEMENT OF EARNINGS
 (in millions, except per share amounts)
 Full Year
 1992 1991
 REVENUES
 Sales $20,183 $19,419
 Earnings from equity interests and
 other revenues 394 255
 TOTAL REVENUES 20,577 19,674
 COSTS
 Cost of goods sold 10,392 9,985
 Sales, advertising, distribution and
 administrative expenses 5,869 5,565
 Research and development costs 1,587 1,494
 Interest expense 813 844
 Restructuring costs 220 1,605
 Other charges 95 170
 TOTAL COSTS 18,976 19,663
 Earnings before income taxes 1,601 11
 Provision (benefit) for income taxes 607 (6)
 Earnings before cumulative effect
 of change in accounting principle 994 17
 Cumulative effect of change in
 accounting principle 152 -
 NET EARNINGS $1,146 $ 17
 Average number of shares of common
 stock outstanding 325.1 324.7
 Primary earnings per share before
 cumulative effect of change in
 accounting principle $ 3.06 $ .05
 Cumulative effect of change in
 accounting principle .47 -
 Primary earnings per share $ 3.53 $ .05
 Fully diluted earnings per share
 before cumulative effect of change
 in accounting principle $ 2.98 $ .05
 Cumulative effect of change in
 accounting principle .43 -
 Fully diluted earnings per share $ 3.41 $ .05
 Cash dividends per share $ 2.00 $ 2.00
 SUPPLEMENTAL INFORMATION
 Provision for depreciation $1,393 $1,329
 After-tax exchange gains (losses)
 and effect of translation of net
 monetary items (32) (83)
 Cash dividends declared 650 649
 Capital expenditures 2,092 2,135
 Cash and marketable securities 560 924
 Working capital 1,407 1,359
 SEGMENT INFORMATION: Fourth Quarter
 (in millions) Percent
 1992 1991 Change
 SALES BY SEGMENT
 Imaging
 Inside the U.S. $ 865 $ 836 3
 Outside the U.S. 1,109 1,056 5
 TOTAL IMAGING 1,974 1,892 4
 Information
 Inside the U.S. 717 682 5
 Outside the U.S. 457 439 4

 TOTAL INFORMATION 1,174 1,121 5
 Chemicals
 Inside the U.S. 667 625 7
 Outside the U.S. 321 287 12
 TOTAL CHEMICALS 988 912 8
 Health
 Inside the U.S. 783 713 10
 Outside the U.S. 556 517 8
 TOTAL HEALTH 1,339 1,230 9
 Deduct Intersegment Sales (71) (73)
 TOTAL WORLDWIDE $5,404 $5,082 6
 SEGMENT INFORMATION: Full Year
 (in millions) Percent
 1992 1991 Change
 SALES BY SEGMENT
 Imaging
 Inside the U.S. $2,971 $2,847 4
 Outside the U.S. 4,444 4,228 5
 TOTAL IMAGING 7,415 7,075 5
 Information
 Inside the U.S. 2,375 2,380 0
 Outside the U.S. 1,688 1,588 6
 TOTAL INFORMATION 4,063 3,968 2
 Chemicals
 Inside the U.S. 2,602 2,449 6
 Outside the U.S. 1,325 1,291 3
 TOTAL CHEMICALS 3,927 3,740 5
 Health
 Inside the U.S. 3,027 2,760 10
 Outside the U.S. 2,054 2,157 (5)
 TOTAL HEALTH 5,081 4,917 3
 Deduct Intersegment Sales (303) (281)
 TOTAL WORLDWIDE $20,183 $19,419 4
 EARNINGS (LOSS) FROM OPERATIONS
 BY INDUSTRY SEGMENT
 (in millions) Fourth Quarter
 Excluding Restructuring Costs
 Percent
 1992 1991 Change
 Imaging $ 316 $ 279 13
 Information (12) (65)
 Chemicals 110 111 (1)
 Health 123 151 (19)
 TOTAL $ 537 $ 476 13
 Including Restructuring Costs
 Percent
 1992 1991 Change
 Imaging $ 316 $ (189)
 Information (12) (478)
 Chemicals 110 111 (1)
 Health 123 118 4
 TOTAL $ 537 $ (438)
 EARNINGS (LOSS) FROM OPERATIONS
 BY INDUSTRY SEGMENT
 (in millions) Full Year
 Excluding Restructuring Costs
 Percent
 1992 1991 Change
 Imaging $ 1,299 $ 1,281 1
 Information (28) (65)
 Chemicals 494 538 (8)
 Health 602 623 (3)
 TOTAL $ 2,367 $ 2,377 0
 Including Restructuring Costs
 Percent
 1992 1991 Change
 Imaging $ 1,216 $ 489 149
 Information (151) (688)
 Chemicals 494 538 (8)
 Health 588 433 36
 TOTAL $ 2,147 $ 772 178
 -0- 2/2/93
 /CONTACT: Paul C. Allen of the Eastman Kodak Company, 716-724-5802/
 (EK)


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

BM -- CL016 -- 2057 02/02/93 16:24 EST
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