News

Kodak 1Q profits top analysts' estimates

April 20, 2004

ROCHESTER, N.Y.--Eastman Kodak Co. announced that its first-quarter profits more than doubled, narrowly beating Wall Street forecasts, according to the Associated Press.  Kodak beat industry estimates due to a surge in sales of digital cameras, photo kiosks and inkjet paper.

Helped by the dollar's weakness abroad, Kodak earned $28 million, or 10 cents a share, in the January-March period, up from $12 million, or 4 cents a share, a year ago.

Without an 11 cents-a-share tax benefit and a 3-cent loss related to a recent acquisition, earnings from operations were 18 cents a share. That beat the consensus forecast of 17 cents among analysts surveyed by Thomson First Call.

Sales rose 11 percent to $2.92 billion from $2.64 billion.

Analysts say Kodak's financial prospects remain blurred while it reshapes itself by integrating a wide range of new digital businesses and acquiring others over the next three years.

Speaking about Kodak's future growth, Shannon Cross of Cross Research in Short Hills, N.J. said, "There's a lot of moving parts. It's too early to judge the success of the strategy. Digital was strong but film continues to weaken. There are plusses and minuses and they're going to have to handle this transition very carefully."

Sales in the digital and film imaging division rose 7 percent to $1.93 billion. Operating profits totaled $16 million, compared with an operating loss of $46 million a year ago.

Worldwide sales of consumer digital cameras, accessories and memory products leaped 98 percent, revenues from photo kiosks and related products surged 55 percent, and sales of inkjet paper and printer docks jumped 42 percent.