NEW YORK (CNN/Money) - Eastman Kodak Co. posted lower first-quarter earnings Thursday but still managed to top forecasts by Wall Street analysts.

The world's biggest maker of film and photography products said it earned $39 million, or 13 cents a share, in the quarter, down from $157 million, or 54 cents a share before a charge, a year earlier. Analysts surveyed by First Call expected the company to report earnings of 10 cents a share for the latest quarter.

Sales fell 9 percent to $2.71 billion, hurt by declines in photography and health imaging and commercial imaging products.

Rochester, N.Y.-based Kodak also reiterated its second-quarter earnings forecast of between 60 and 70 cents a share; the First Call consensus is 63 cents. For all of 2002, the company said it will earn between $2 and $2.60 a share; the consensus is $2.18.

"So far this year, we see few signs of an economic recovery, which reinforces our strategy to maximize cash," CEO Daniel Carp said. "We will continue to manage our businesses aggressively so margins and profit improve as we move into the second half of 2002, when, as we've said before, we expect modest revenue growth."

Carp added that while the company lost share in its U.S. consumer film business, where it remains the industry leader, he expects new marketing efforts to improve results in the segment.

Kodak (EK: Research, Estimates) shares fell 93 cents to $33.94 Wednesday.

The company reported negative cash flow in the quarter, but that was a sharp improvement over the year ago figure, thanks chiefly to a change in the timing of dividend payments. Kodak also cut its debt by $628 million and reduced costs by 4 percent.

Kodak also reduced inventories in the quarter.