updated 10/28/2003 6:26:49 PM ET 2003-10-28T23:26:49

Eastman Kodak Co., struggling with a three-year slump in film sales as it tries to bolster its digital businesses, posted a 63 percent drop in third-quarter profit Wednesday, but handily beat Wall Street’s earnings forecast.

The world's largest photography company said it earned $122 million, or 42 cents a share, down from $334 million, or $1.15 a share, in last year’s third quarter.

Excluding restructuring and other one-time items, however, earnings were $252 million, or 88 cents a share — that beat the consensus forecast of 57 cents a share among analysts surveyed by Thomson First Call.

Sales rose 3 percent to $3.447 billion from $3.352 billion a year ago.

Last month, Kodak slashed its annual dividend by 72 percent to fund a major shift away from its ailing conventional film business and into the fast-growing but highly competitive digital arena.

The company expects more than $1 billion in digital imaging sales this year. By year-end, industry analysts think digital cameras, which record snapshots on computer chips, could begin outselling traditional film cameras for the first time in the United States.

Kodak took a charge of $125 million, or 44 cents a share, in the third quarter to cover the cost of job cuts. It is eliminating up to 6,000 jobs this year, which will shrink its payroll to around 62,000 from a peak of 136,500 in 1983.

In its photography division, Kodak said U.S. revenues fell 4 percent to $1.01 billion even while sales of consumer digital cameras surged 117 percent. Health imaging sales edged up 1 percent to $571 million and commercial imaging sales rose 6 percent to $373 million.

Kodak controls about two-thirds of the U.S. film market but profits have been hit by falling prices and a drop in sales dating back to August 2000.

For the first nine months of the year, Kodak earned $246 million, or 86 cents a share, down from $657 million, or $2.25 in the first three quarters of 2002. Sales rose to $9.54 billion from $9.39 billion.

© 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


Discussion comments


Most active discussions

  1. votes comments
  2. votes comments
  3. votes comments
  4. votes comments

Data: Latest rates in the US

Home equity rates View rates in your area
Home equity type Today +/- Chart
$30K HELOC FICO 3.79%
$30K home equity loan FICO 4.99%
$75K home equity loan FICO 4.69%
Credit card rates View more rates
Card type Today +/- Last Week
Low Interest Cards 13.83%
Cash Back Cards 17.80%
Rewards Cards 17.18%
Source: Bankrate.com