Polaroid’s Profits Down Sharply for Year, Quarter

Polaroid Corp. said its profits for the year and fourth quarter plummeted 48.3% and 59.2%, respectively, as the growing strength of the U.S. dollar cut sharply into overseas sales.

For the full year, the Cambridge, Mass.-based firm said profit fell 48.3% to $25.7 million from $49.7 million in 1983. Revenue rose slightly in 1984, to $1.27 billion from $1.25 billion in 1983, the company said.

The manufacturer of instant cameras and films said its profit fell to $10.3 million in the fourth quarter from $25.3 million a year earlier.

Revenue fell to $376.8 million in the fourth quarter from $391.7 million in the fourth quarter of 1983, Polaroid said.

William J. McCune Jr., chairman and chief executive, blamed the drop in profits on higher expenses associated with new products and programs, the strength of the dollar abroad and expenses associated with the company’s magnetic business.

“The company continued to invest in new product programs for the future,” said McCune, noting that capital expenditures increased 65% to $83 million in 1984. “These investments are essential for designing new instant photographic and other imaging systems.”

Unit sales of amateur instant cameras were higher in the last quarter of 1984 than during the same quarter of the previous year. Film sales were somewhat lower, the company said.