Kodak 2004 & 2003 results to be restated

According to a Kodak press release, the restatements reflect accounting errors related to income taxes, accruals for pensions and other post-retirement benefits, as well as other miscellaneous items that were immaterial in the aggregate. The company expects that the impact of the errors will have no material impact on revenue or cash flow, and no impact of any kind on its ability to pay retirement benefits.

The income tax accounting issues in aggregate are expected to reduce 2004 earnings by approximately $35 million, or 11 cents per share, on an operational basis, and $21 million, or 7 cents per share, on the basis of Generally Accepted Accounting Principles (GAAP). The pension and other post-retirement accounting issues will result in a pre-tax charge to 2004 earnings of approximately $29 million, or approximately 6 cents per share on both an operational and GAAP basis.

The company now expects that its 2004 GAAP earnings will be in the range of $2.05 to $2.15 per share, versus $2.16 per share reported on January 26. Earnings from continuing operations, excluding the impact of non-operational items, are expected to be in the range of $2.40 to $2.50 per share, versus $2.62 cents per share reported on January 26.

For 2003, GAAP earnings are expected to be in the range of $0.75 to $0.85 per share versus $0.92 per share reported previously. Earnings from continuing operations, excluding the impact of non-operational items, are expected be in the range of $2.05 to $2.15 per share, versus the $2.15 per share reported previously.