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Eastman Kodak


posted a drop in first-quarter profit, saying consumers are taking fewer vacations and fewer pictures.

Consequently, the company warned that second-quarter results could miss analysts' estimates, while full-year results may come in at the low end of previous forecasts.

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Including certain charges, Kodak earned $12 million, or 4 cents a share, compared with $39 million, or 13 cents a share, in the first quarter last year. Excluding charges, the company earned $39 million, or 14 cents a share. Analysts polled by Thomson Financial/First Call were expecting 14 cents a share, on average.

"Our first-quarter results reflect an unprecedented combination of events in recent times. Consumers have cut back significantly on travel and vacation spending, and that has impacted picture-taking," said Chief Executive Daniel A. Carp.

Revenue rose 1% to $2.74 billion from $2.71 billion. Excluding the effects of foreign exchange rates, however, sales fell 4%. Kodak's photography unit sales declined 1% to $1.798 billion.

If current trends continue into the second quarter, the company said earnings could range from 60 cents a share to 80 cents a share, but with a potential upside. Analysts have predicted earnings of 91 cents a share, on average. The company earned 85 cents a share in the prior-year quarter.

Kodak expects full-year 2003 earnings to come in at the low end of the $2.35 to $2.95 a share range the company provided in January. Analysts expect $2.54 a share. The company earned $2.72 a share in 2002.