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Kodak 1Q picture perfect
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April 17, 2000: 9:34 a.m. ET
Company beats estimates for fifth straight quarter despite flat sales
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NEW YORK (CNNfn) - Eastman Kodak Co. Monday topped analysts' earnings estimates for the fifth consecutive quarter despite relatively flat sales.
The Rochester, N.Y.-based imaging products maker posted operating earnings of $297 million, or 95 cents per share, for the first quarter, up sharply from the $259 million, or 80 cents per share, earned a year earlier. The results surpassed the consensus analysts' estimate of 93 cents, as compiled by research firm First Call Corp.
Including certain one-time costs and accelerated depreciation charges, earnings were $289 million, or 93 cents per share, up from the $191 million, or 59 cents, a year earlier.
Separately, Kodak officials said they remain comfortable with analysts' second-quarter earnings estimates of between $1.60 and $1.70 per share and full-year projections of $5.50 to $5.80 per share.
 The first-quarter income gains came despite flat revenue, which held steady during the quarter at $3.1 billion when negative currency impacts and portfolio changes were included. Overall revenue was negatively impacted by a sharp decline in sales of Kodak's professional division, which saw lower revenue from digital camera sales due to pricing pressures and lower commercial business revenue as customers continued to use smaller format films.
Company officials hinted continued negative exchange rates eventually could reduce the company's full-year revenues.
"We remain confident in our ability to deliver on our top-line growth objective of 6 percent to 7 percent, before exchange [rates], for the full year," President and CEO Daniel Carp said. "However, if full-year exchange rates remain close to the spot rates at the end of March, we could see full-year revenue growth reduced by about a percentage point."
Even factoring in negative currency exchange rates during the first quarter, however, revenue climbed in most divisions.
Kodak's Consumer Imaging unit had a 3 percent sales gain overall, including an 8 percent increase in worldwide film sales as the company continued to penetrate emerging markets.
The company's Health Imaging division saw a more moderate 1 percent increase in sales, although U.S. sales jumped 8 percent, helping push operating earnings from that segment up 33 percent.
Digital product sales also remained strong across the company's franchise and now represent 23 percent of revenue.
Kodak (EK: Research, Estimates) shares lost 7/8 to close at 61-1/2 during Friday's sharp market sell-off. 
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Eastman Kodak Co.
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