Kodak

[P3D Eric Goldstein <egoldste@xxxxxx>]

Regarding a thread a month or so back dealing with Kodak's financial
well-being in general and it's position relative to the comsumer market
and film promotions in particular...

> Wednesday July 16 3:41 PM EDT 
> 
> Analysts may cut Kodak 1997 EPS further
> 
> By Jeff Mamera 
> 
> NEW YORK, July 16 (Reuter) - Wall street analysts pared Eastman Kodak
> Co 1997 earnings estimates Wednesday
> after the company issued disappointing second-quarter results, and 
> said they would cut forecasts futher if Kodak
> continued to cut film prices. 
> 
> Earlier, Kodak Chief Financial Officer Harry Kavetas told Reuters in
> an interview that he expected the company would
> have to slash prices on some U.S. film products a further five percent
> or more this year due to price pressures from Fuji
> Photo Film Co (4901.T) and other competitors. 
> 
> The analysts cut estimates after Kodak reported second-quarter 
> earnings of $1.12 a share, down from $1.30 a year ago
> and well below the First Call consensus estimate of $1.39 a share. 
> 
> Gary Schneider, an analyst at Bear Stearns, said he will cut his 1997
> earnings estimates for Kodak ``a minumium'' of
> 10.0 percent from his current estimate of $5.00 a share. 
> 
> ``No one has a choice but to slash estimates,'' he said. 
> 
> Smith Barney analyst Peter Enderlin said he cut his 1997 estimates to
> $4.50 a share from $4.88 a share. He also cut
> 1998 estimates to $5.50 a share from $5.80. 
> 
> Alexander Henderson, an analyst at Prudential Securities, said today
> he cut his 1997 estimates to $4.40 a share from
> $4.85 a share, and that he may have to cut them below $4.00 a share if
> Kodak is extremely agressive in slashing U.S.
> film prices. 
> 
> ``That could easily drop them into the $4.00 a share (for the year)
> range or less,'' Henderson said. 
> 
> Charlie Smith, a Kodak spokesman, said the company is sticking to its
> official statement from a press release earlier in
> the day regarding 1997 earnings. 
> 
> In the release, Kodak chief executive George Fisher said ``it will be
> very difficult to deliver 1997 operating earnings per
> share beyond 1996 levels.'' The company earned $4.50 a share in 1996. 
> 
> Analysts, however, said that in addition to cutting prices, Kodak
> needs to be more efficient in marketing its new camera
> products in the United States if it hopes to stop losing market share.
> If camera sales rise, sales for film to load the
> cameras will also rise, the analysts said. 
> 
> ``It's a top-line issue,'' said Merrill Lynch's Curran. ``They need to
> improve their top-line to boost their bottom-line.'' 
> 
> ``They need a more effective use of their advertising dollars,''
> Curran added. ``They've said that before but now they
> have to execute it.'' 
> 
> Kodak said in its statement today that its second-quarter results were
> hurt by film pricing pressures, as well as higher
> losses for its digital products and increased marketing expenses for
> its new Advantix camera system. 
> 
> Robert Curran of Merrill Lynch estimated that Kodak has about two-
> thirds of the U.S. film market. 
> 
> In the Reuters interview, however, Kodak's Kavetas said the company
> had only lost between 1.0 and 2.0 percent of its
> U.S. film market share in the past 12 months.


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