Eastman Kodak, the world's biggest photography company, said third-quarter earnings will be below the company's previous forecasts because of lower-than-expected September sales.
Profit will be 20 cents to 25 cents a share lower than the earlier $1.56 to $1.66 a share forecast, said Gerard Meuchner, a Kodak spokesman. The average estimate of analysts polled by First Call/Thomson Financial was $1.60 a share.
Fourth-quarter profit forecasts may have to be revised lower if the current sales trend continues, the company said. Kodak was counting on strong September sales to offset the effects of unfavorable exchange rates, higher raw material costs and increased investment in digital photography.
Kodak said in May that a further decline in the euro against the dollar could cut sales. A falling euro means that Kodak earns less when sales in Europe are converted into dollars. The euro has dropped about 13 percent against the dollar this year.
The company will release third-quarter results Oct. 18.