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


 user 2005-01-17 at 10:05:00 am Views: 44
  • #11324
    Kodak Buys Out Sun Chemicals Stake In Printing Venture

    ROCHESTER, N.Y.Eastman Kodak Co.will pay $817 million in cash to buy out Sun Chemical Corp.’s 50% interest in Kodak Polychrome Graphics, which makes equipment and materials for large-scale printers.

    In a press release Wednesday, camera and imaging company Kodak said the deal would help it expand, boosting earnings and revenue in each of the next two years.

    Sun Chemical, a unit of Japan’s Dainippon Ink and Chemicals Inc. (4631.TO), said separately that it wants to reinvest money in its business, printing inks and pigments.

    Kodak agreed to pay $317 million at closing, $200 million in the third quarter of 2006, and $50 million each year between 2008 and 2013.

    Established in 1998, the Kodak Polychrome Graphics venture has about 4,000 employees and is expected to generate $1.7 billion in 2004 revenue.

    With the deal scheduled to close in April, Kodak expects the unit to add 5 cents a share to its 2005 earnings and $1.1 billion to 2005 revenue after eliminating inter-company sales. Kodak said operating income, which excludes items, would be boosted by 8 cents a share in 2005.

    For 2006, when Kodak will have owned the venture for the full year, the camera company said it expects an extra 14 cents in both net earnings and operating earnings with additional revenue of $1.4 billion.

    The 14-cent boost was included in Kodak’s stated goal of reaching an operating profit of $3 a share in 2006, the company said.

    Analysts surveyed by Thomson First Call expect the company to post a profit of $2.52 in 2004 and $2.55 in 2005. A single analyst venturing a guess for 2006 expects a profit of $2.55.

    Kodak said it will operate Kodak Polychrome Graphics, which is based in Norwalk, Conn., as a wholly-owned unit. The venture’s chief executive, Jeff Jacobson, will remain in charge, reporting the James Langley, Kodak’s graphics communications group president.

    Kodak said Wednesday that the acquisition would fit into its strategy of transforming itself from a film company to a digital company. While that effort has led to thousands of job cuts, Kodak will keep all 4,000 of the venture’s employees, a spokesman said.

    Kodak Finished 2003 with about 64,000 employees, but pledged to cut 12,000 to 15,000 jobs, which it has been doing over the past year. The spokesman said 2004 employement figures weren’t yet available.

    Wednesday’s deal deosn’t Require sharholder approval for either Kodak or Sun Chemical.