*NEWS*KODAK POSTS LOSS OF $1.03BILLION

  • 2toner1-2
  • futor_902x177v7-tonernew
  • 4toner4
  • cartridgewebsite-com-big-banner-02-09-07-2016
  • facebook-tonernews-12-08-2016
  • toner-news-big-banner-nov-8
  • 05 02 2016 429716a-cig-clearchoice-banner-902x177
  • mse-big-banner-new-03-17-2016-416716a-tonernews-web-banner-mse-212
  • Print
  • 161213_banner_futorag_902x177px
  • 536716a_green_sweep_web_banner_902x17712
  • big-banner-ad_2-sean
Share

*NEWS*KODAK POSTS LOSS OF $1.03BILLION

 user 2005-10-19 at 10:59:00 am Views: 42
  • #14142

    Kodak Posts Loss of $1.03 Billion
    (Oct.05)
    - Eastman Kodak Co., stung by a slide in film sales midway through its
    painful shift from traditional photography to digital imaging, posted a
    loss of $1.03 billion in the third quarter largely because of one-time
    tax charges related to its massive restructuring.
    Its shares sank
    5.5 percent after Wednesday’s report to its lowest level in about two
    years. Kodak shares dropped $1.26 to $21.88 in early trading on the New
    York Stock Exchange.
    Kodak said it lost the equivalent of $3.58 a
    share in the July-September quarter, compared with a profit of $458
    million, or $1.60 a share, a year ago.
    Sales rose 5 percent to $3.55 billion, up from $3.37 billion in last year’s third quarter.
    For
    the first time, Kodak generated more quarterly revenues from digital
    than from film, paper and other chemical-based products. But while
    digital sales soared 47 percent to $1.89 billion, traditional revenues
    slumped 20 percent to $1.66 billion.
    The quarter included a non-cash
    charge of $900 million, or $3.13 a share, for a valuation allowance
    against net-deferred U.S. tax assets. That reserve was an accounting
    requirement resulting from continuing losses created by its accelerated
    overhaul.
    The company’s loss from continuing operations, excluding one-time charges, was $103 million.
    Kodak
    warned last month that a sluggish economy and shortfalls in its
    health-imaging business would likely crimp its digital profits this
    year, forcing it to build fewer digital cameras and home printers for
    the end-of-year holiday season. It had projected profits of around $275
    million to $325 million.
    Kodak is also battling a steep drop in
    demand for photographic film and paper. In July, it disclosed plans to
    lay off 10,000 employees on top of 12,000 to 15,000 job cuts targeted
    in January 2004.
    Sales of conventional silver-halide film – Kodak’s
    cash cow for the last century – look set to drop by more than 30
    percent in the United States this year.
    In the third quarter, Kodak
    benefited from a 20 percent jump in sales of digital cameras and a 45
    percent surge in sales of home printers and accessories. Helped in part
    by a reallocation of certain costs to its traditional business, its
    digital profit rose to $10 million from $6 million a year ago.
    “We
    continue to see widespread evidence of the success of our digital
    transformation,” said Kodak’s chief executive, Antonio Perez.
    Health imaging sales eased 1 percent to $635 million, and operating earnings fell to $90 million from $106 million.
    But
    graphic communications sales nearly tripled to $886 million, helped in
    part by its $980 million buyout of Canada’s Creo Inc., and operating
    earnings were $15 million, compared with a loss of $16 million a year
    ago.
    Two years ago, Kodak acknowledged that its analog businesses
    were in irreversible decline and outlined an ambitious strategy to
    become a digital heavyweight in photography, medical imaging and
    commercial printing by 2007.
    The transition triggered nearly $3
    billion in acquisitions but has carried a high cost. The shutdown of
    film and other manufacturing operations around the world looks likely
    to drop its global work force below 50,000, down from 75,100 in 2001
    and a peak of 145,300 in 1988.