Eastman Kodak Profit Declines 17%, in Line With Forecasts
Eastman Kodak Co. said Tuesday that its profit fell 17% in the first quarter, almost in line with Wall Street expectations, giving its stock a boost on optimism that its cost-cutting efforts are beginning to bear fruit.
Other blue-chip companies weighed in Tuesday with first-quarter earnings that matched or exceeded analyst forecasts.
Kodak, the world’s largest photography company, said its earnings fell to $225 million, or 69 cents a diluted share, from $272 million, or 80 cents, amid lower consumer sales of its film, higher marketing costs and mounting losses in its digital-imaging business.
Revenue fell 7% to $2.91 billion.
The results were in line with expectations of 70 cents a share, based on the average estimate of nine analysts surveyed by IBES International Inc.
The report sent Kodak’s shares up 6%, or $3.81, to close at $70.81 on the New York Stock Exchange.
“Overall, our progress on our recovery plan is on target, and we are where we expected to be at this time,” Chairman George Fisher said.
Rochester, N.Y.-based Kodak narrowed losses in its struggling digital film business and said erosion of its share of the traditional-film market had slowed.
At a Glance
BANKING:
* J.P. Morgan & Co., the fourth-largest U.S. banking company, said profit from operations fell 14% to $366 million, or $1.80 a diluted share, from $424 million, or $2.04, a year earlier, as expenses outpaced revenue growth.
Revenue rose 9% to $2 billion, led by higher fees from advising in mergers, underwriting stocks and bonds, and trading. Expenses increased 19%.
* First Union Corp.’s first-quarter earnings rose 16% to $606 million, or 93 cents a diluted share, beating analyst estimates of 88 cents, from $504 million, or 79 cents, a year earlier.
The banking company, the nation’s largest, profited from its non-core businesses, as fee income from investment banking and money management surged. Income from lending fell.
Net interest income fell 4% to $1.37 billion. Non-interest income surged 39% to $1.13 billion, led by increases in investment banking, brokerage, mutual funds and other income.
* Beverly Hills-based City National Corp. said first-quarter earnings rose 24% to $22.5 million, or 46 cents per diluted share, compared with $18 million, or 38 cents, a year ago.
DRUGS:
* Johnson & Johnson, the nation’s second-biggest drug company, said earnings rose 11% in the first quarter to $1.01 billion, or 73 cents a diluted share, from $909 million, or 66 cents, a year earlier. Sales edged up 1% to $5.78 billion.
* Pfizer Inc.’s first-quarter profit rose 15% to $692 million, or 53 cents a diluted share, from $602 million, or 46 cents, a year earlier, matching analyst estimates. Revenue jumped 11% to $3.34 billion, with the strong dollar dragging down sales growth, the company said.
* Genentech Inc. said first-quarter earnings rose 30% to $41 million, or 32 cents a diluted share, from $31.6 million, or 25 cents, a year earlier.
PAPER:
* International Paper, the world’s largest paper and forest products company, said profit more than doubled to $75 million, or 25 cents per diluted share, from $34 million, or 11 cents, a year earlier. Sales were flat at $4.9 billion, but the company benefited from a major cost-cutting program.
* Weyerhaeuser’s first-quarter profit rose 85% to $85 million, or 43 cents a diluted share, from $46 million, or 22 cents, a year ago. Sales were flat at $2.6 billion. Rising demand and prices for paper used in magazines and catalogs offset a decline for white paper used for printers and copiers.
* Bowater Inc., the nation’s largest newsprint producer, reversed a loss in the first quarter but fell short of analyst estimates with earnings of $20.8 million, or 50 cents a share, on a 10% increase in sales, to $383.2 million from $348.5 million. The company posted a loss of $300,000, or 3 cents, a year ago.
ENERGY:
* Enron Corp.’s profit rose 38% to $214 million, or 65 cents a share, beating expectations, compared with profit from operations of $156 million, or 57 cents, a year ago. The company said profit from trading electricity was stronger than expected, while profit from its U.S. gas pipeline unit fell. Revenue increased 6% to $5.68 billion.
