NEW YORK (Standard&Poor's) April 21, 2004--Standard&Poor's Ratings Services said that Eastman Kodak Co.'s (BBB-/Negative/A-3) announcement of stronger-than-expected first quarter results, while positive, would not affect its ratings or outlook. Sales and EBITDA (adjusted for restructuring, impairments, and other charges) were both up about 11% in the seasonally slow quarter. However, core film sales remain under pressure, which is a significant threat to future earnings and cash flow. It remains imperative that Kodak continue to manage its costs to maintain good profitability and the cash flow needed to fund its ongoing transition to digital technologies. The successful integration of its numerous acquisitions over the past several quarters and any future purchases are also critical. Kodak plans to
