KODAK 2Q PROFIT DECLINES 19%

[Anonymous]

http://money.cnn.com/news/newsfeeds/articles/reuters/MTFH50773_2009-07-30_13-20-44_N30330926.htm
KODAK 2Q PROFIT DECLINES 19%
* Q2 oper loss $0.43/shr misses Wall St view loss $0.36/shr
* Q2 revs down 29 pct to $1.77 bln vs view $1.83 bln

NEW
YORK july 2009 – Eastman Kodak Co posted disappointing second-quarter
results Thursday as weak demandhurt its film and digital photography
businesses, but said it saw signs the rest of the year may be
better.Citing cost cutting and hints of optimism among consumers who
buy its digital cameras and desktop printers, Kodak said its loss for
the year would likely be at the lower end of the range it forecast in
February.

Its shares eased about 2 percent in premarket trading.
The stock has risen about 13 percent in the past month, but is still
down almost 50 percent this year on concerns that investors will have
to wait longer to see sustained profits after years of
restructuring.Kodak posted a second-quarter loss of $189 million, or 70
cents a share, compared with a profit of $495 million, or $1.72, a year
earlier.Excluding special items, the loss was 43 cents a share.
Analysts, on average, expected a loss of 36 cents share, according to
Reuters Estimates.

Kodak said its gross profit margin fell to
18.5 percent from 23.6 percent as sales declined and intellectual
property licensing royalties decreased.Revenue fell 29 percent to $1.77
billion from $2.49 billion. Analysts expected $1.83 billion, according
to Reuters Estimates.The company attributed the weak sales to a global
recession that has limited consumer spending on travel and other
activities that spur usage of cameras and snapshot printers.Also, tight
credit markets have muted corporate plans to invest in Kodak’s
commercial printing systems and services.

Kodak’s traditional
film business continued to shrink, with sales falling 30 percent in the
quarter, hurt in part by uncertainty over Hollywood labor talks, which
have since been resolved.Kodak Chief Executive Antonio Perez said there
are signs that retailers are more optimistic about the second half of
the year, which could help Kodak generate earnings and cash that will
be better than first-half levels.”We have every expectation that our
cash flow pattern this year will mirror the pattern of previous years,
with a sizable increase in cash generation in the second half of 2009,”
he said in a statement.

Kodak said it sees digital revenue
growing 1 percent to 3 percent for the second half of the year, with
total company revenue declining 4 percent to 6 percent.For full-year
2009, it still expects to see a decline of 6 percent to 12 percent in
digital revenue and a drop of 12 percent to 18 percent in total revenue.

Kodak
has spent the last six years shifting its focus from cameras and
traditional film to digital printing systems and long-life photographic
ink. It has said it needs partners to further develop some of its
cutting-edge technologies, such as CMOS image sensors and super-thin
OLED screens.Its shares slipped to $3.20 in premarket trade after
closing at $3.28 Wednesday on the New York Stock Exchange.

[Author]

July 30, 2009 at 11:12 AM