Kodak’s Profit Rises 39%, Less Than Forecast

Eastman Kodak Co. said its earnings rose a less-than-forecast 39% in the fourth quarter and warned that its 1999 earnings might fall short of analysts’ expectations. The photography giant’s profit, excluding one-time items, increased to $343 million, or $1.05 a share, compared with analyst expectations of $1.15. The results benefited from Kodak’s 20% reduction in its work force and asset sales. Revenue fell for the eighth consecutive quarter--by a greater-than-expected 5.7% to $3.56 billion--as the Rochester, N.Y.-based company slashed film prices to better compete with Fuji Photo Film Co. For the year, Kodak’s earnings rose 26% to $1.43 billion, or $4.37 a share, as revenue fell 7.8% to $13.4 billion. But Chairman George Fisher said 1999 profit at best will meet analysts’ current estimates of about $5.19 a share. The gloomy forecast sent Kodak shares down $8.19 to close at $70.50 on the New York Stock Exchange.