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Kodak Post Q1 Profit After Taking $650M From UK Pension Fund
By Matthew Daneman
The first three months of 2013, Eastman Kodak Co. made a profit — its first such quarter in the black since 2010.For the quarter ending March 31, Kodak saw revenues of $849 million and, after expenses, profits of $283 million or $1.04 per share, according to paperwork filed Monday with the U.S. Securities and Exchange Commission. The same three months a year ago, just as Kodak was filing for Chapter 11 bankruptcy protection, it had revenues of $928 million and a loss of $366 million or $1.35 per share.
Kodak chalked up the better results to its commercial printing-related business doing better and — most importantly — $535 million the company made on selling nearly 1,100 digital imaging patents. For accounting purposes, that $535 million carried with it a $77 million non-cash impairment writedown.
Not counting such expenses as reorganization costs and taxes, Kodak’s Graphics, Entertainment and Commercial Films business unit was $38 million in the black for the quarter, compared to an $84 million loss a year ago, though much of that improvement was due to one-time windfalls such as $31 million in non-recurring brand license revenues.
The Digital Printing and Enterprise Segment was $8 million in the red — not counting such expenses as taxes — compared to an $89 million loss a year ago, as Kodak ends its desktop inkjet printer business and focuses just on ink sales.
“These results demonstrate that we are on track with our strategy to focus on Commercial Imaging, and that we are making operational improvements as Kodak takes the right steps to emerge as a profitable and sustainable company,” CEO Antonio M. Perez said in a statement.
Kodak’s Personalized and Digital Imaging businesses had a $9 million loss from continuing operations, same as a year ago. Kodak is selling those businesses to the United Kingdom pension fund representing roughly 15,000 current and former Kodak workers there.
During the quarter, Kodak spent $12 million on restructuring expenses such as severance as it eliminated 225 positions worldwide.
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Kodak To Sell-Off 2 More Imaging Divisions For $650Mln To Uk Pension Fund(Reuters) – Bankrupt photography pioneer Eastman Kodak Co EKDKQ.PK said it will sell two of its remaining imaging businesses to its UK pension fund for $650 million.
The agreement, subject to approval by the U.S. Bankruptcy Court in Manhattan, also settles the fund’s claims of about $2.8 billion against Kodak.
The settlement assures Kodak’s continued operations outside the United States, Chief Executive Antonio Perez said in a statement.
Kodak has been trying to sell most of its consumer and document imaging businesses and shift its focus to commercial imaging.
The two businesses being sold are personalized imaging, which includes most consumer products and retail printing kiosks, and its document imaging unit that makes scanners for enterprise customers.
Kodak’s commercial imaging business includes its graphic communication, film and specialty chemical products.
Kodak last month amended its financing deal that required it to raise at least $600 million from the sale of noncommercial imaging assets.
The company, which launched its first camera in 1888, was unable to successfully shift to digital imaging and filed for bankruptcy protection last year.
Its bankruptcy case is in Re: Eastman Kodak Co. et al, U.S. Bankruptcy Court, Southern District of New York, No. 12-10202.
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