Brazil, drop in sales at Kodak send stocks down

Citicorp, other banks in emerging markets see their shares fall

January 15, 1999|By BLOOMBERG NEWS

NEW YORK -- Financial companies and photography giant Eastman Kodak Co. led blue-chip stocks lower yesterday.

Citigroup Inc., which has lent heavily in Brazil and throughout Latin America, lost $1.3125, to $50.875.

J. P. Morgan & Co. fell $4.1875, to $102; BankAmerica Corp. dropped $2.9375, to $62.50; and BankBoston Corp. slid $1.875, to $36.375. Standard & Poor's yesterday revised to negative its outlook on several U.S. and Western European banks because of their vulnerability to emerging markets, including those three.

Kodak's shares fell $8.1875, to $70.50, after it reported earnings of $272 million in the fourth quarter. The profit reversed a year-earlier loss, but the numbers were disappointing.

Revenue fell for the eighth quarter in a row as the company, taking aim at rival Fuji Photo Film Co., slashed U.S. film prices 13 percent. Kodak's third-quarter revenue also missed expectations.

The company said it earned 83 cents a diluted share, but sales were down 6 percent at $3.6 billion. A year earlier, when the company was paying for a large-scale reorganization, Kodak lost $744 million, or $2.29 a share, on sales of $3.7 billion.

Among consumer stocks taking big hits yesterday were Dow components Philip Morris Cos., which fell $1.1875, to $53, and Procter & Gamble Co., down $2.8125, to $85.1875.

General Motors Corp. fell 68.75 cents, to $81.

International Business Machines Corp. fell $4.875, to $180.625, and copier maker Xerox Corp. lost $3.25, to $111.

Coca-Cola Co. dropped $1.6875, to $63.50.

Apple Computer Inc. fell $5.125, to $41.375. The PC maker reported earnings that topped expectations but said sales of personal computers will fall as holiday buying slows.

Intel Corp. fell $5.25, to $133.75, after rising 2.5 percent Wednesday on its report of better-than-expected profit.

Advanced Micro Devices Inc., Intel Corp.'s biggest rival, fell $5.25, to $22.50, after it said a production glitch kept it from shipping more higher-priced computer chips, hurting its fourth-quarter profit. The company said late Wednesday that a problem making higher-speed, higher-priced microprocessors kept it from capitalizing on strong demand for personal computers.

Competition from Intel, which is cutting prices on its own chips to combat AMD, is expected to add to AMD's woes this year.

Whole Foods Market Inc. fell $10, to $34.50, after the largest U.S. natural-foods grocer said higher-than-expected labor costs will pull fiscal first-earnings below estimates.

On the broad market, Russell 2,000 index, a benchmark of small-cap stocks, lost 4.76, to 420.10; the Wilshire 5,000 index slumped 187.04, to 11,187.89; the American Stock Exchange composite index dropped 1.23, to 698.16; and the S&P 400 midcap index sank 4.96, to 277.93.

The Sun-Bloomberg Maryland index of the top 100 Maryland stocks skidded 4.16, to 191.64.

World markets ended mixed. The Nikkei 225 index in Tokyo gained 2.50 percent; the DAX index in Frankfurt, Germany, dropped 5.16 percent and the FT-SE 100 in London fell 0.51 percent. The Paris CAC index finished up 0.97 percent.

Pub Date: 1/15/99

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