Eastman Kodak Profits Off 26% in Third Quarter

Eastman Kodak’s profit fell 26% in its third fiscal quarter as the world’s largest photographic company continued to feel the effects of depressed demand and a strong dollar, company officials said.

Profit for the quarter, which ended Oct. 6, was $246.1 million, compared to $332.3 million for 1984’s third quarter. Worldwide revenue for the three-month period was $3.23 billion, up 3% from last year’s $3.15 billion.

Colby H. Chandler, Kodak chairman and chief executive, said the small sales gains were still being negated by sluggish conditions in the chemical industry, its second-biggest business after photography, and by increased competition worldwide.

He predicted the company would have trouble bringing its fourth-quarter earnings up to the 1984 level.

In the third quarter, “earnings were also adversely affected by higher research and development costs, increased marketing expenses and the impact of the overvalued U.S. dollar,” Chandler said in a joint statement with company President Kay R. Whitmore.

Raymond Cowen, an analyst for Value Line Investment Survey, said Kodak’s sales increase was attained at “very heavy” cost.

“They’re being squeezed from every direction and there’s no way out for them,” Cowen said. “I don’t see any way that they can raise prices and cut costs.”

“Despite our expectations for sales gains in the fourth quarter, pressure on selling prices will make it difficult to match the earnings level of last year’s quarter,” Chandler said.