KODAK :$ 137Mln LOSS TO LAY-OFF 4,500 EMPLOYEES

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KODAK :$ 137Mln LOSS TO LAY-OFF 4,500 EMPLOYEES

 user 2009-02-10 at 2:50:04 pm Views: 63
  • #21761

    http://www.marketwatch.com/news/story/kodak-shares-sink-22-big/story.aspx?guid={ED1D6EAA-C328-4C66-A585-074A5898B85F}&dist=msr_75
    Kodak to cut jobs as it swings to $137 million loss
    SAN
    FRANCISCO– Eastman Kodak Co. shares dropped 29% Thursday after the
    company swung to a big loss in the fourth quarter, bruised by slumping
    sales of its digital cameras and other photography equipment, and said
    it will cut up to 4,500 jobs.Kodak said it will cut 14% to 18% of its
    workforce, or between 3,500 and 4,500 jobs. This adds to prior
    cash-conservation actions last month that included freezing the
    company’s 401(k) match for eligible employees, a move taken by other
    U.S. companies of late.The Rochester, N.Y.-based photo giant also said
    none of its executives will get a bonus.Due to the expected
    restructuring charges, Kodak is talking to its banks to make sure it
    will be in compliance with its covenants tied to its revolving credit
    line. The company said it is “comfortable” with its liquidity position
    through at least 2009. It ended 2008 with $2.15 billion in cash and
    cash equivalents despite much lower cash flow from operations.Job cuts
    have been running deep at Kodak , once a Dow Jones Industrial Average
    Component. In 2007, it completed a three-year program that slashed the
    company’s workforce by 50% to 27,000 employees.

    Since this past
    fall, Kodak has been hit by the severe slowdown in spending by
    consumers and businesses. With credit harder to come by, businesses
    have found it more difficult to secure financing for new equipment
    purchases, hurting the company’s printer business.Kodak said it lost
    $137 million, or 51 cents a share, a big swing from the year-earlier
    period, when the company earned $215 million, or 71 cents a share. The
    most recent quarter included one-time charges of 42 cents. Revenue fell
    24% to $2.4 billion.The company said its 2008 results are preliminary
    as it is still determining the value of its goodwill and long-lived
    assets. This review could lead to non-cash impairment charges that
    could have a “material” impact, the company warned.Kodak shares closed
    Thursday at $4.99. The stock has lost 76% over the past 12 months.