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KODAK CEO WILL NOT CUT ANYMORE
JOBS !
CLICK ON THIS
LINK BELOW TO SEE LIVE VIDEO
http://www.youtube.com/watch?v=2wFunT78vp4&feature=player_embedded
Kodak presents growth
strategy to Wall Street
NEW YORK —
Eastman Kodak today is a $7.6 billion company selling digital cameras to
consumers, film to Hollywood, digital printing plates and software to
commercial printers and inkjet printers to homes and small offices.Kodak
by year’s end hopes to be a $7.7 billion company also selling massive
commercial inkjet printers and a lot more ink.And Kodak by 2012 aspires
to be an $8.5 billion company where digital products and services
account for more than 80 percent of sales and half of its film-making
assets are used for products other than film.“We are starting 2010 with
the best momentum possible — the best momentum I can remember with the
company,” CEO Antonio M. Perez told an audience of 200 on Thursday in an
ornate meeting room at the New York Stock Exchange.The meeting —
Kodak’s annual strategy session with Wall Street analysts — featured
executives such as Perez providing details about the company’s business
plans. Those plans are for a company increasingly reliant on recurring
revenue from sales of ink for its inkjet printers and services to
commercial printers and film makers, Perez said. The company, for
example, hopes to double its ink revenue this year.A watershed moment is
looming for Kodak. Just as digital revenue surpassed the traditional
film business in 2006, Perez said revenue from the consumer inkjet
business should surpass film this year. The good news for Rochester:
Most of that ink manufacturing is done at Eastman Business Park.And
while the film business — Kodak’s traditional cash cow — continues to
shrink, revenue generated by the company’s Film, Photofinishing and
Entertainment Group could conceivably level off by 2014. The group’s
stability could be achieved as Kodak increasingly uses its film-centric
manufacturing operations, which are heavily Rochester-based, to serve
related industries.Examples would include selling inks and dyes to the
personal care product industry and gels to the pharmaceutical industry,
said Brad Kruchten, group president.One other area where Kodak said it
hopes to carve out a market is in packaging printing. Currently a niche
business for the company, its Flexcel equipment and software could
double in value to a $300 million operation by 2012, said Kodak
President Philip J. Faraci.The company last week said it made a
profit in the fourth quarter for the first time in the past five
quarters, but it still lost money for the full year. Kodak officials
said Thursday they’re hoping for improved results this year because of
productivity gains. Like many companies, Kodak’s bottom line is being
helped by doing more with less. It eliminated 2,500 jobs worldwide last
year and now employs 20,300 people, 7,400 of them in the Rochester area.Kodak
plans to do $50 million to $60 million worth of restructuring this year
— a “dramatically reduced level,” said Chief Financial Officer Frank
Sklarsky.While the company did not provide details, that dollar amount
likely would translate into a few hundred jobs. Sklarsky said some of
those cuts would be overseas.“The major restructuring is behind us,” he
said. “(We’re) now focused on growth.”During the strategy meeting, Perez
indicated that the Kodak board, which he chairs, isn’t looking to
resume paying dividends on shares anytime soon. And he was visibly testy
in an exchange with one questioner who argued that Kodak depends on
past glories in intellectual property.Other investors were
willing to cut the company a bit more slack.“It looks like they’re
headed in the right direction,” said shareholder Joel Keller of New
Jersey. “It’s just the times now — every company is suffering. Kodak
will work out the problems.”
http://rocnow.com/article/business/20102050322
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