NEW YORK (CNNfn) - Eastman Kodak said Monday its 1999 earnings expectations will take a little time to develop, with first-quarter results below consensus and the rest of the year exceeding forecasts.
The Rochester, N.Y., photo products maker said first-quarter earnings would be between 72 cents and 80 cents a diluted share, below the 82 cents a share consensus of analysts surveyed by First Call. The company earned 69 cents a share in the first quarter of 1998.
Kodak (EK) blamed the first-quarter weakness on exchange rate fluctuations, integration of the medical imaging business acquired by Imatron, portfolio adjustments, low film prices and conditions in emerging markets.
But starting in the second quarter, Kodak said, earnings will start to be better than forecast due to more favorable comparisons to non-U.S. results and the integration of the medical imaging business with existing operations. Also expected to help will be improved consumer film pricing and a boost in emerging markets.
Kodak forecasts second-quarter earnings between $1.50 and $1.59 a diluted share, above the First Call consensus of $1.45 and the year-earlier earnings of $1.38 a share.
The company said full-1999 results are expected to be between $4.81 and $5.24 a diluted share, generally in line with the $4.98 First Call consensus and 10 to 20 percent higher than the $4.37 earned in 1998.
Kodak, one of the 30 issues that comprise the Dow Jones industrial average, closed Friday at 65-1/4, down 3/8.