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Kodak meets, warns
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October 24, 2001: 10:35 a.m. ET
No. 1 photo products maker to cut up to 4,000 more jobs as profits weaken.
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NEW YORK (CNNmoney) - Eastman Kodak Co. posted a sharp drop in third-quarter profits Wednesday and warned the current quarter won't be much better, adding it will cut up to 4,000 more jobs.
The world's largest maker of photo film reported a profit of $152 million, or 52 cents a share, excluding special items. That's in line with forecasts of analysts surveyed by earnings tracker First Call but down from the $430 million, or $1.40 a share, a year earlier.
The company said it expects fourth-quarter operating earnings of no more than 15 cents a share, versus forecasts of 46 cents a share on average, which already was down from the 68 cents it earned a year ago.
The company had warned of the drop in earnings and plans to cut more jobs a week after the Sept. 11 attack, although it did not give a specific job cut target. The latest cuts of 3,500 to 4,000 jobs will bring total reductions to 6,500 to 7,500 this year. The cuts should save the company $400 million to $450 million next year.
Kodak's statement did not give specific 2002 earnings guidance, although it quoted CEO Daniel Carp as saying, "All signs suggest the weakness will continue into next year."
Third-quarter revenue for the Rochester, N.Y.-based company slipped to $3.3 billion from $3.6 billion a year earlier, slightly better than the $3.2 billion analysts had forecast.
Including special items, Kodak posted third-quarter net income of $96 million, or 33 cents a share, down from $418 million, or $1.36 a share, a year earlier.
Shares of Eastman Kodak (EK: Research, Estimates), a component of the Dow Jones industrial average, fell 19 cents to close Tuesday at $34.77. 
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