• cartridgewebsite-com-big-banner-02-09-07-2016
  • big-banner-ad_2-sean
  • Print
  • 4toner4
  • 2toner1-2
  • Video and Film
  • mse-big-new-banner-03-17-2016-416616a-tonernews-web-banner-mse-114
  • mse-big-banner-new-03-17-2016-416716a-tonernews-web-banner-mse-212
  • 7035-overstock-banner-902x177
  • 05 02 2016 429716a-cig-clearchoice-banner-902x177


 user 2005-01-15 at 10:42:00 am Views: 32
  • #11301
    Kodak to Become Sole Owner of Kodak Polychrome Graphics; Transaction Immediately Accretive to Earnings Both on a GAAP and Operational Basis; Strengthens Position in Graphic Communications Market, Expands Distribution

    ROCHESTER, N.Y.—-Eastman Kodak Company today announced that it will become the sole owner of Kodak Polychrome Graphics (KPG) through redemption of Sun Chemical Corporation’s 50 percent interest in the joint venture. Kodak and Sun Chemical each own half of KPG currently, a joint venture established in 1998. The transaction will increase immediately Kodak’s sales and earnings while expanding the global distribution network for the digital printing systems made by its Graphic Communications Group and broadening the company’s solutions portfolio.

    “Kodak Polychrome Graphics is an established leader in supplying products and solutions to the graphic communications industry,” said Daniel A. Carp, Chairman and Chief Executive Officer, Eastman Kodak Company. “This transaction, which is immediately accretive to earnings, is another decisive step in the implementation of our digitally oriented growth strategy and strengthens Kodak’s ability to compete in the fastest-growing segments of the industry.”

    Under the terms of the transaction, Kodak will redeem all of Sun Chemical’s shares in KPG by providing $317 million in cash at closing, $200 million in cash in the third quarter of 2006 and $50 million in cash annually from 2008 through 2013, for a total of $817 million. Kodak will fund the redemption through internally generated cash flow. The transaction is expected to close in April 2005.

    KPG revenues for 2004 are expected to be $1.7 billion. Kodak expects this transaction to add approximately $1.1 billion to Kodak’s revenue in 2005, reflecting approximately nine months of Kodak ownership, and the elimination of inter-company sales from Kodak to KPG. In 2006, Kodak expects approximately $1.4 billion of incremental revenue, reflecting a full year of ownership and the elimination of inter-company sales.

    Kodak also expects the transaction will add approximately eight cents to the company’s 2005 operational earnings and approximately 14 cents to its 2006 operational earnings.These figures Are included in Kodak’s stated goal of achieving operational earnings of $3 per share in 2006. On a Generally Accepted Accounting Principles (GAAP) basis, Kodak expects the transaction will add approximately five cents to the Company’s 2005 EPS and approximately 14 cents to its 2006 EPS.