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Kodak posts 2Q record
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July 21, 2000: 9:58 a.m. ET
Photo products maker meets forecasts, says rest of year on target
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NEW YORK (CNNfn) - Eastman Kodak Co. posted record second-quarter earnings Friday, meeting analysts' forecasts, as the company said profits for the rest of the year also are developing in line with targets.
The world's largest photography products company earned $513 million, or $1.65 a diluted share, from operations. That was in line with the estimates of analysts surveyed by earnings tracker First Call, and up from the $491 million, or $1.52 a share, it posted a year earlier.
Including special items, net income came to $506 million, or $1.62 per share, in the latest quarter.
 Friday is the one-year anniversary of the company's announcement it would cut more than 2,000 jobs and take a $300 million restructuring charge. As recently as March 1999 it was issuing earnings warnings. But it has put together solid reports over the last year, meeting or exceeding estimates, and it now appears to have turned the corner, said Ulysses Yannas of Buckman, Buckman & Reid.
"They have demonstrated that they can manage their business well," he said. He said the company has positioned itself for growth even with the rise of digital cameras that don't use film.
The company, the 14th component of the Dow Jones industrial average to release results this week, said it should earn between $1.56 and
$1.66 a share in the third quarter and $5.55 to $5.75 a share for the year. Current consensus forecasts are in the middle of those ranges -- $1.61 a share for the third quarter and $5.66 for the year.
"With second-quarter sales in our core consumer film business up double digits on a volume basis worldwide, we are confident that we are on track to deliver sales growth in the range of 6 to 7 percent, adjusted for currency and portfolio, for the full year," said Daniel Carp, president and chief executive of the Rochester, N.Y.-based company, who was promoted to the company's top job in January. "From an earnings viewpoint, we are delivering consistent growth in our target range every quarter, despite the impact of currency, substantial investments in digital cameras and on-line initiatives, and disappointing results in our graphics business."
Yannas said those revenue-growth projections are in line with consensus estimates and are a sign there is no looming price war in the industry. Revenue rose to $3.7 billion in the quarter from $3.6 billion a year earlier.
For the first six months, the earned $795 million, or $2.55 a diluted share, up from $682 million, or $2.11 a share, a year earlier. Revenue rose to $6.8 billion from $6.7 billion.
Shares of Kodak (EK: Research, Estimates) gained 13/16 to 59-7/8 in trading Thursday. 
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Eastman Kodak Co.
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