Hohoho !
Niusik pod wzost WIG20. tak z 2,3 %

The Rochester, N.Y.-based photographic products company said consumer spending has slowed dramatically, and tight credit markets are making it hard for shoppers to secure financing for new equipment purchases.

"There is an unprecedented amount of uncertainty surrounding the economic environment and most signs indicate that we may be facing a prolonged global recession," Chief Executive Antonio M. Perez said in a statement.

Shares declined 36 cents, or 4.7 percent, to $6.86 in morning trading.

Kodak also said "dramatic" changes in the dollar's value are hurting earnings and sales. A stronger dollar makes its products more expensive to customers abroad.

In October, the company forecast 2008 operating profit of $200 million to $250 million, down from $400 million to $500 million. Kodak also lowered its outlook for full-year revenue growth at that time, forecasting a decline of 3 percent to 5 percent from 2007 sales of $10.3 billion.

Goldman Sachs analyst Chris Hussey was concerned by Kodak's decision to also withdraw cash flow guidance for the full year and not provide any detail on the fourth quarter, with only 20 days left until the end of the quarter.

"Our current forecast of $360 million of fourth-quarter cash generation is already below the company's original guidance" of $500 million in October, Hussey said, "but we now believe there is downside risk to our estimate."

He also said the "news is not a surprise to us given the vast number of fourth-quarter preannouncements we have seen from industrial, consumer and technology companies."

Kodak said executives will not receive a salary increase next year and its 401(k) plan will be suspended temporarily.

"We will continue to take prudent actions necessary to ensure that Kodak is well positioned to take full advantage of the economic recovery when it comes," Perez said.

In October, Kodak said it planned to slash more jobs, but did not say how many. That's in addition to the thousands of job cuts the company has already made over the past several years as part of a restructuring.

Kodak will update investors on its business when releasing fourth-quarter and full-year 2008 results on Jan. 29.