CAMBRIDGE, Mass. (AP) _ Polaroid Corp. reported today it lost $75.5 million during the fourth quarter due to cutbacks in orders from U.S. retailers and continuing weakness in overseas markets.

The company's loss translated to $1.72 cents per diluted share, and compared with a loss of $202.8 million, or $4.51 per share, in the fourth quarter of 1997.

Restructuring charges contributed to Polaroid's losses the past two years.

In addition, the company has cut back on manufacturing for distribution in the United States as stores reduce their inventory of Polaroids. Domestic sales fell about 6 percent in the fourth quarter.

Sales overseas have also dropped _ about 16 percent for the period _ because of the global financial crisis.

In all, sales for the fourth quarter fell to $541.8 million from $607.6 million a year earlier.

Gary DiCamillo, the company's chairman and chief executive officer, said fourth quarter results met expectations.

``We knew the fourth quarter would close out a difficult year, given worldwide market conditions and the dealer inventory reduction program,'' he said.

For all of 1998, Polaroid lost $51 million, or $1.15 a dilluted share, compared to $126.7 million, or $2.81 a diluted share, in 1997.

Sales declined to $1.85 billion from $2.15 billion.

Polaroid had introduced new products in 1998 including instant cameras marketed for children in hopes of boosting sales.