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KODAK REPORTS RECORD SALES, LOWER EARNINGS FOR 1991 RESTRUCTURING CHARGES RESULT IN NET LOSS FOR FOURTH QUARTER

 KODAK REPORTS RECORD SALES, LOWER EARNINGS FOR 1991
 RESTRUCTURING CHARGES RESULT IN NET LOSS FOR FOURTH QUARTER
 ROCHESTER, N.Y., Feb. 4 /PRNewswire/ -- Eastman Kodak Company (NYSE: EK) today reported record sales of $19.4 billion in 1991, up 3 percent over 1990, and sharply lower net earnings of $17 million, or $.05 per share, due to the $1 billion after-tax effect of restructuring charges.
 In the absence of the restructuring charges, net earnings for the year would have been $1.05 billion or $3.23 per share, compared with $1. 27 billion or $3.91 per share last year before deducting the Polaroid litigation judgment.
 Commenting on 1991 results, Kodak chairman and chief executive officer Kay R. Whitmore said, "The year 1991 was challenging for Kodak, and for many other companies. As if recession in the U.S. economy and a lackluster background for business in most of Europe were not enough to overcome, depression in the travel industry induced by the Mideast War continued throughout the year. The fourth quarter was particularly difficult, as consumers restrained their spending and businesses put off purchases of office equipment.
 "Against this background, total Kodak sales rose modestly to a new high. That 'high', however, fell short of plan. Among the imaging, information, chemical, and health segments of our business, only health reached its sales targets. While manufacturing productivity continued to improve, it cost us more to move our products into the hands of customers and more to move the yield from research into and through development. The result was lower earnings.
 "Midway through the year, Kodak reached a strategic turning point. We merged our photographic and information systems groups into a newly consolidated Imaging organization. The early retirement program which followed, along with related restructuring activities, led to restructuring charges of more than $1 billion after-tax. We see these charges as an investment in a stream of improved results from a company focused clearly on its leadership role in imaging.
 Concerning 1992, Whitmore said: "While the U.S. economy should recover this year, few believe that recovery will be perceptible for at least six months. The same is probably true of major markets in Europe. For Kodak, 1992 will be a year of emphasis on better use of our assets, a tight focus on research, continued gains in manufacturing productivity, and general cost containment. Advertising and promotional expenditures will be large, to stimulate demand, load our plants, and secure our strong position in world markets. Despite concerns about the economic background, we expect 1992 to be a time when the benefits of what was done last year will begin to show in category growth, higher sales, and better earnings."
 For the fourth quarter, sales were $5.08 billion, down slightly from $5.15 billion in 1990. The company posted a loss of $400 million, or $1.23 per share, compared with net earnings of $326 million, or $1.01 per share, in the 1990 fourth quarter.
 In the absence of the $597 million after-tax effect of the restructuring charges, fourth quarter net earnings would have been $197 million or $.61 per share compared with $326 million, or $1.01 per share, in 1990. The 1991 fourth quarter restructuring charge includes estimated costs for employees who will leave under the portion of the company's early retirement plan applicable to 1992.
 The company also reported worldwide 1991 year-end employment of 133,200, compared with the 134,400 reported at the end of 1990. In the United States, Kodak employment at the end of 1991 was 76,900, down four percent from 80,300 at the end of 1990. Outside the U.S., acquisitions relating mainly to the photofinishing business and clinical diagnostics added more than 2,200 employees.
 Since 1988, the company's worldwide employment has declined eight percent, despite acquisitions both in the U.S. and abroad.
 IMAGING SEGMENT: In the Imaging Segment, sales to customers in the U.S. showed a slight decrease from 1990. Volumes were lower as softness in the U.S. economy continued during 1991. Outside the U.S., sales were essentially level with last year, as volume increases were almost offset by lower effective selling prices and the unfavorable effects of foreign currency rate changes.
 INFORMATION SEGMENT: Sales to customers in the U.S. continued to be unfavorably impacted during 1991 by weak economic conditions. The comparison with 1990 was also adversely affected by the inclusion in 1990 of sales from divested units, primarily Verbatim, Inc. Outside the U.S., sales recorded a slight decline as increased volumes were more than offset by lost sales from divested units. Sales were also negatively impacted by lower effective selling prices and adverse currency changes.
 CHEMICAL SEGMENT: Slight increases in 1991 sales to customers in the U.S. were driven by unit volume gains. Outside the U.S., good sales gains were led by moderate growth in unit volumes and higher effective selling prices. Worldwide sales of plastics and fibers were up moderately and chemicals registered slight increases over 1990.
 HEALTH SEGMENT: Sales to customers in the U.S. in 1991 recorded good increases primarily due to moderate volume gains. Outside the U.S., sales benefited from the inclusion of two additional months of Sterling Winthrop Inc. sales recorded in the first quarter of 1991. Without these two extra months, sales outside the U.S. would still have recorded good gains over 1990. All health segment businesses posted sales gains for the year.
 Eastman Kodak Company and Subsidiary Companies
 CONSOLIDATED STATEMENT OF EARNINGS
 Fourth Quarter
 1991 1990
 (in millions, except
 per share amounts)
 REVENUES
 Sales $5,082 $5,151
 Earnings from equity
 interests & other revenues 73 53
 ------ ------
 TOTAL REVENUES 5,155 5,204
 ------ ------
 COSTS
 Cost of goods sold 2,719 2,658
 Sales, advertising,
 distribution &
 administrative expenses 1,476 1,460
 Research & development
 costs 410 366
 Interest expense 209 173
 Restructuring costs/
 Litigation judgment 914 (21)
 Other charges 78 38
 ------ ------
 TOTAL COSTS 5,806 4,674
 ------ ------
 Earnings before income taxes (651) 530
 Provision (benefit) for
 income taxes (251) 204
 ------ ------
 NET EARNINGS (LOSS) $ (400) $ 326
 ------- ------
 ------- ------
 Net earnings (loss) per share $(1.23) $ 1.01
 Cash dividends per share $ .50 $ .50
 ------ ------
 SUPPLEMENTAL INFORMATION
 Provision for depreciation $ 373 $ 320
 After-tax exchange gains (losses)
 and effect of translation
 of net monetary items (57) (28)
 Cash dividends declared 163 163
 Capital expenditures 660 801
 SEGMENT INFORMATION
 (in millions)
 Fourth Quarter
 1991 1990 Change
 Sales
 Imaging
 Inside the U.S. $ 836 $ 935 (11) pct
 Outside the U.S. 1,056 1,063 (1)
 ------ ------ ---
 Total Imaging 1,892 1,998 (5)
 ------ ------ ---
 Information
 Inside the U.S. 682 684 0
 Outside the U.S. 439 462 (5)
 ------ ------ ---
 Total Information 1,121 1,146 (2)
 ------ ------ ---
 Chemicals
 Inside the U.S. 625 601 4
 Outside the U.S. 287 307 (7)
 ------ ------ ---
 Total Chemicals 912 908 0
 Health
 Inside the U.S. 713 655 9
 Outside the U.S. 517 511 1
 ------ ------ ---
 Total Health 1,230 1,166 5
 ------ ------ ---
 Deduct Intersegment Sales (73) (67)
 ------ ------ ---
 Total Worldwide $5,082 $5,151 (1) pct
 ------ ------ ---
 ------ ------ ---
 Earnings (Losses) from
 Operations by Industry Segment
 (in millions)
 Fourth Quarter
 1991 1990 Change
 Before
 Restruct.
 Costs
 Imaging $ 282 $ 425 (34) pct
 Information (65) (61)
 Chemicals 111 133 (17)
 Health 151 170 (11)
 ------ ------ ----
 Total $ 479 $ 667 (28) pct
 ------ ------ ----
 ------ ------ ----
 Fourth Quarter
 1991 1990 Change
 After
 Restruct.
 Costs
 Imaging $ (186) $ 425 pct
 Information (478) (61)
 Chemicals 111 133 (17)
 Health 118 170 (31)
 ------ ------ ----
 Total $ (435) $ 667 pct
 ------ ------ ----
 ------ ------ ----
 Eastman Kodak Company and Subsidiary Companies
 CONSOLIDATED STATEMENT OF EARNINGS
 Full Year
 1991 1990
 (in millions, except
 per share amounts)
 REVENUES
 Sales $19,419 $18,908
 Earnings from equity
 interests & other revenues 230 246
 ------ ------
 TOTAL REVENUES 19,649 19,154
 ------ ------
 COSTS
 Cost of goods sold 9,985 9,637
 Sales, advertising,
 distribution &
 administrative expenses 5,565 5,098
 Research & development costs 1,494 1,329
 Interest expense 819 812
 Restructuring costs/
 Litigation judgment 1,605 888
 Other charges 170 133
 ------- ------
 TOTAL COSTS 19,638 17,897
 ------- ------
 Earnings before income taxes 11 1,257
 Provision (benefit) for
 income taxes (6) 554
 ------- ------
 NET EARNINGS $ 17 $ 703
 ------- ------
 ------- ------
 Average number of shares of
 common stock outstanding 324.7 324.5
 Net earnings per share $ .05 $ 2.17
 Cash dividends per share $ 2.00 $ 2.00
 SUPPLEMENTAL INFORMATION
 Provision for depreciation $ 1,329 $ 1,168
 After-tax exchange gains (losses)
 and effect of translation
 of net monetary items (83) (50)
 Cash dividends declared 649 649
 Capital expenditures 2,135 2,037
 Cash and marketable securities 924 916
 Working capital 1,359 1,445
 SEGMENT INFORMATION
 (in millions)
 Full Year
 1991 1990 Change
 Sales
 Imaging
 Inside the U.S. $ 2,847 $ 2,936 (3) pct
 Outside the U.S. 4,228 4,192 1
 ------- ------- ---
 Total Imaging 7,075 7,128 (1)
 ------- ------- ---
 Information
 Inside the U.S. 2,380 2,506 (5)
 Outside the U.S. 1,588 1,634 (3)
 ------- ------- ---
 Total Information 3,968 4,140 (4)
 ------- ------- ---
 Chemicals
 Inside the U.S. 2,449 2,399 2
 Outside the U.S. 1,291 1,189 9
 ------- ------- ---
 Total Chemicals 3,740 3,588 4
 ------- ------- ---
 Health
 Inside the U.S. 2,760 2,541 9
 Outside the U.S. 2,157 1,808 19
 ------ ------- ---
 Total Health 4,917 4,349 13
 ------ ------- ---
 Deduct Intersegment Sales (281) (297)
 ------ ------- ---
 Total Worldwide $19,419 $18,908 3 pct
 ------- ------- ---
 ------- ------- ---
 Earnings (Losses) from
 Operations by Industry Segment
 (in millions)
 Full Year
 1991 1990 Change
 Before
 Restruct.
 Costs
 Imaging $1,281 $1,611 (20) pct
 Information (65) 5
 Chemicals 538 602 (11)
 Health 623 626 0
 ------ ------ ----
 Total $2,377 $2,844 (16) pct
 ------ ------ ----
 ------ ------ ----
 Full Year
 1991 1990 Change
 After
 Restruct.
 Costs
 Imaging $ 489 $1,611 (70) pct
 Information (688) 5
 Chemicals 538 602 (11)
 Health 433 626 (31)
 ------ ------ ----
 Total $ 772 $2,844 (73) pct
 ------ ------ ----
 ------ ------ ----
 -0- 2/4/92
 /CONTACT: Paul C. Allen of Eastman Kodak, 716-724-5802/
 (EK) CO: Eastman Kodak Company ST: New York IN: CHM SU: ERN


KK -- CL017 -- 6848 02/04/92 16:06 EST
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