Eastman Kodak ( EK) said second-quarter profits will come in significantly below analysts' projections and slashed its operating earnings estimates. The film and camera company cited the SARS outbreak and several recent nonrecurring items. Kodak expects earnings of 5 cents to 25 cents a share in the quarter. The company earned 85 cents a share in the second quarter last year, excluding items, and 95 cents a share, including items. Included in the current quarter's charges are items associated with exiting the company's Phogenix joint venture, certain asset impairments and restructuring charges. "In April, our guidance assumed that the effect of SARS on picture-taking would be much less than it has turned out to be," said Chief Executive Officer Daniel Carp. "The SARS outbreak, as well as concern about geopolitical tensions, is keeping people from participating in activities that foster picture-taking." The company said industrywide sales of consumer film in China during April and May were nearly half of the amount sold during the same two months a year ago. Operating earnings are now expected to be 25 cents to 35 cents a share, down from Kodak's initial expectation of 60 cents to 80 cents a share provided on April 23. Analysts are calling for 68 cents a share. Revenue will likely be flat with last year's $3.34 billion and largely in line with analysts' estimates of $3.3 billion. Excluding foreign exchange impact, the company expects sales to fall about 5% from the 2002 second quarter. Kodak, based in Rochester, N.Y., said earnings and sales will continue to be hurt for the remainder of the year, due to lower tourism and the weak economy. The company will provide an update on July 23 when second-quarter results are released.