Kodak faces job cuts as profits drop 48%

Camera and film maker Eastman Kodak today reported sharply lower first-quarter net profits.

Camera and film maker Eastman Kodak today reported sharply lower first-quarter net profits.

The company cited the slowdown in the US and confirmed a restructuring plan was in place under which some 3,500 jobs will be cut from its 78,000-strong workforce.

The company, which has struggled with lower sales amid tough competition in a slowing economy, reported net income of $150 million, or 52 cents a share, compared with $289 million, or 93 cents a share, a year earlier.

Excluding a charge of 2 cents per share, mainly for exiting an equipment manufacturing facility, earnings were 54 cents per share.

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Analysts surveyed by Thomson Financial/First Call expected earnings of 49 cents to 56 cents a share, with an average estimate of 52 cents.

The company reported revenues of $2.98 billion, down from $3.1 billion a year earlier.

Kodak shares closed last night at $43.50, up $1.02, on the New York Stock Exchange. The stock has fallen about 28 per cent over the past year and under-performed the Standard and Poor's 500 index by 18 percent.

Kodak, which has taken several steps in recent months to cut costs and reduce debt, announced a restructuring that includes cutting its work force by 3,000 to 3,500, or up to 4.5 per cent.