Here is a look at more of Thursday's top business stories:
Eastman Kodak sees higher results
ROCHESTER, N.Y., July 11 (UPI) -- Eastman Kodak Co., citing improved manufacturing productivity and operational performance, said its second quarter operating earnings rose to 85 cents a share, which tops the 60 cents to 70 cents a share the company previously predicted.
Analysts on Wall Street had put the company's second quarter earnings at 63 cents a share.
Kodak also said it began to realize cost savings sooner than expected under a restructuring that began last year.
The film company said a preliminary estimate put its second quarter bottom-line earnings at 97 cents a share. The figure includes a tax benefit of 15 cents related to the shuttering of a unit and a write-down totaling 3 cents a share tied to venture investments.
For last year's third quarter, Kodak earned $1.12 a share before items and 12 cents a share including items.
Kodak second quarter sales fell across nearly all of its units, somewhat more than expected. For the year, the company expects sales to fall slightly below those of 2001.
Kodak said second quarter sales declined in the mid- single digits across most units amid ongoing economic weakness.
The company also said it expects the lackluster economy to drive 2002 sales down from the $13.23 billion posted last year.
Kodak, a component of the Dow Jones industrial average, estimated its second quarter operating cash flow totaled about $285 million in the second quarter.
The company said that for the first half of 2002, operating cash flow improved by about $650 million from the same period in 2001 because of improved earnings, tighter controls on capital spending, lower receivables and a previously announced change in dividend policy to make payments in the second half of the year.
The company expects the first half improvement in operating cash flow to be about $395 million, excluding dividend payments made in the first half of 2001.
Kodak, which plans to release second quarter results July 25, said it will likely leave its operating guidance for the second half of the year unchanged at $1.35 to $1.75 a share.
The company noted that meeting the upper half of the range would require an improvement from current business conditions.
In the second half of 2001, Kodak's operating earnings per share totaled 64 cents, including goodwill amortization.
Footstar to sell Thom McAn shoes in Wal-Mart
WEST NYACK, N.Y., July 11 (UPI) -- Shoe retailer Footstar Inc. said it reached an agreement with Wal-Mart Stores Inc. to supply Thom McAn shoes in 300 Wal-Mart Stores starting in October.
The company also confirmed it will begin operating children's shoe departments in some Federated Department Stores, as well as shoe departments in Gordman's department stores in July.
Footstar said it expects the new business to add 2 cents to 3 cents a share to its second half earnings.
Mickey Robinson, chairman and chief executive officer, said, "We are very excited about this opportunity to expand Thom McAn, one of the fastest growing value footwear brands.
"In the four years since we reintroduced the brand it has grown to become one of the top 50 footwear brands in the country, with top of mind brand awareness of more than 75 percent," Robinson said.
Earnings fall at Dow Jones
SOUTH BRUNSWICK, N.J., July 11 (UPI) -- Dow Jones & Co Inc., publisher of the Wall Street Journal, said its second quarter net income excluding several non-operating items plunged from a year ago, knocked down by sustained weakness in technology and financial services advertising.
Dow Jones said its second quarter net income fell to $21.4 million, or 25 cents a share, excluding the sale of several newspapers, investment gains, restructuring charges and other items, from $45.5 million, or 52 cents a share during the same period last year.
Last year's results were before special items.
Analysts on Wall Street had expected the company to post a net income of 22 cents a share, according to Thomson Financial/First Call.
The company told analysts in June that it expected earnings in the low 20 cent range, when the average analyst estimate was 28 cents.
Revenue declined 13.9 percent to $417 million.
Chairman and Chief Executive Peter Kann described the current ad environment as the most difficult in three decades, but said improving profits in the community newspaper and electronic publishing segments position the company for "strong earnings growth once the global advertising environment improves."
For the third quarter, Dow Jones expects earnings before special items to be in the upper-single-digit range, compared to 20 cents a share a year earlier.
A Thomson Financial/First Call survey of analysts produced a mean estimate of 31 cents a share for the company's upcoming third quarter.
Ad linage trends at The Journal are expected to "modestly improve" during the third quarter, but still post declines of 8 percent to 12 percent.
The company said second quarter print publishing revenue fell 16.5 percent to $261.3 million, while electronic publishing revenue fell 2.1 percent to $78.6 million.
Operating income at the company's electronic publishing segment, excluding items, rose 6.5 percent to $15.2 million.
Paid subscribers to The Wall Street Journal Online rose to 646,000 as of June 30, up 6,000 from the end of the first quarter.
Second quarter revenue at the company's Ottaway community newspapers rose 1 percent to $71.9 million, while ad linage fell 2.2 percent in the quarter and 4.1 percent in June, excluding divested properties. Operating income, excluding items, rose 6.6% to $21.9 million.
Earnings rise slightly at Cintas Corp.
CINCINNATI, July 11 (UPI) -- Uniform provider Cintas Corp. said its fourth quarter net income rose to $64.1 million, or 37 cents a share, from $60.2 million, or 35 cents a share during the same period last year.
Analysts on Wall Street had expected the compnay to post a net income of 36 cents a share, according to Thomson Financial/First Call.
Total revenue for the fiscal fourth quarter ended May 30 rose to $604 million from $563 million a year ago.
Robert J. Kohlhepp, chief executive officer, said, "Many of our customers have cut the size of their workforce, closed plants and eliminated shifts, all of which have a negative impact on our business.
"Even though we may not lose the customer, the amount of business that we do with each customer shrinks as their workforce shrinks. In spite of this pressure on our existing business, we are writing more new business and adding more new customers than ever before," Kohlhepp said.
"During the quarter, Cintas grew 10 percent in its rental business while our other services revenue grew 1 percent. The lower growth rate in other services revenue was primarily due to the fact that many customers postponed their uniform purchases. We believe those customers will resume their purchases once the economy turns around," he added.
Looking ahead, Cintas also said it sees 2003 earnings per share of $1.55 to $1.62, and revenue of $2.8 billion to $2.9 billion. Analysts on average expect 2003 earnings of $1.59 per share, according to Thomson Financial/First Call
In addition to providing uniforms to a wide variety of industries, Cintas also provides outsourcing services including entrance mats, sanitation supplies, clean room services and first aid and safety products and services.
Marriott International posts flat results
WASHINGTON, July 11 (UPI) -- Hotel operator Marriott International Inc. said its second quarter net income was essentially unchanged from a year before, hampered by a soft market in business travel.
Marriott reported a net income of $129 million, or 50 cents a share, compared with $130 million, or 50 cents a share during the same period last year.
Sales rose 5 percent to $5.1 billion.
Marriott said its hotel room revenues, a widely watched barometer of industry health, fell 8 percent for the quarter as the company's rates dropped 6.6 percent.
In May, Marriott said it expected to meet its second-quarter earnings target of 41 cents to 43 cents per share on strong profit margins, but that room revenues were expected to come in at the lower end of a previously forecast 5 percent to 7 percent decline.
Business for Marriott and other hotel companies dropped sharply last year during the post-Sept. 11, but was bouncing back steadily through the first quarter of this year.
J.W. Marriott, Jr., chairman and chief executive officer, noted the company's continued earnings strength despite lower levels of business travel.
"As we expected, the power of our brands is even clearer in a slow economic environment. With lower business transient demand in 2002, travelers have had many hospitality choices and our brands continue to gain a growing share of consumers' lodging dollars," Marriott said.
"Through May of 2002, our flagship brand, Marriott Hotels, Resorts and Suites, achieved a revenue per available room (REVPAR) premium over its competitors of 117 percent, an increase of three percentage points," he added.
