posted a 63% decline in third-quarter net income Wednesday, as demand for film dried up and the company took a big charge to implement cost cuts. But Kodak also raised its guidance for the full year, citing its new focus on digital technology.
The Rochester, N.Y.-based company said earnings fell to $122 million, or 42 cents a share, in the third quarter, from $334 million, or $1.15 a share, in the same period last year. Excluding the effect of job cuts and other cost reductions, the company earned 88 cents a share, well above the 57-cent estimate. Kodak adjusted its estimated annual effective tax rate to 19% from 24%, and that added about 10 cents to earnings.
"Our third-quarter results reinforce the rationale behind the strategy we unveiled to investors on Sept. 25," said Chairman and CEO Daniel Carp. "Our digital businesses -- both commercial and consumer -- continue to demonstrate solid growth."
In September the company said it was shifting away from film and would invest money into digital technology. During the quarter, digital camera sales to consumers rose 117%, and Kodak posted its first-ever profit in the segment.
Overall, sales edged up 3% to $3.45 billion from $3.35 billion. But revenue fell 1% excluding the effect of a weak dollar.
Looking ahead, Kodak raised its full-year estimate to a range of $1.15 to $1.30 a share, from a previous forecast of 68 cents to $1.08. The firm expects operating earnings of $2.10 to $2.20 a share. Analysts are currently calling for the firm to earn $1.78.
Separately, Kodak said it acquired a 20% stake in Lucky Film Corp., the largest maker of photographic film in China, for $100 million in cash plus other assets. China is Kodak's second-biggest market.