NEW YORK (Standard&Poor's) Jan. 26, 2005-- Standard&Poor's Ratings Services said today that Eastman Kodak Co.'s (BBB-/Watch Neg/A-3) preliminary full year 2004 results do not currently affect its ratings, which remain on CreditWatch with negative implications. Kodak's 2004 revenue, excluding foreign currency benefits, was flat as a 40% increase in digital sales (30% excluding acquisitions) offset a 16% deterioration in traditional sales. EBITDA, excluding restructuring expenses, was also flat year-over-year, primarily because of significant cost reductions. Profitability was consistent with the company's guidance, but cost cutting cannot continue to support the company's operating results in light of rapid and accelerating declines in traditional photography revenue. The CreditWatch listing continues to reflect concern about Kodak's near- to intermediate-term
