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Kodak earnings decline
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July 16, 1997: 10:41 a.m. ET
Company's second quarter profit slips 14 percent on lower sales revenue
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NEW YORK (CNNfn) - In news that slammed down its stock price and weighed heavily on the Dow Jones industrial average, Eastman Kodak Co. reported net earnings of $368 million for the 1997 second quarter, a drop of 14 percent, or $1.12 per share.
The Rochester, N.Y. company had sales of $3.85 billion, a decline of 6 percent from the same period the previous year.
Investors reacted negatively to the news, with Kodak shares (EK) down 9-1/4 to 67-5/8 at the start of trading on the New York Stock Exchange. The news also put a drag on the Dow Jones industrial average, bring it back from a brief foray beyond the 8,000 barrier.
The company blamed the earnings decline on a stronger U.S. dollar, higher losses for digital products, marketing expenses for its new Advantix camera and film products, and price pressures.
Costs tied to shedding the company's office imaging business last year also hurt sales results, the company said. After accounting for the imaging business, sales rose 2 percent in the United States, the company said.
"We continue to be optimistic about our long-term prospects for profitable growth," said George Fisher, Kodak's chief executive.
Ongoing investments in marketing programs for Advantix and digital products will make it difficult to increase 1997 earnings beyond 1996 earnings levels, Fisher said. 
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Eastman Kodak Co.
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