Kodak to Stop Selling Consumer Inkjet Printers

[Anonymous]

Kodak to Stop Selling Consumer Inkjet Printers

 Eastman Kodak Co.  further narrowed its vision for what the company will look like if it emerges from bankruptcy, saying it will wind down its consumer printing business and run it for cash.

The Rochester, N.Y., company said that, starting next year, it will focus on the sale of ink to its installed base of printers, and halt sales of consumer inkjet printers. It expects the change will significantly improve cash flow in the U.S. beginning in the first half of 2013.

Kodak also said it will cut 200 more jobs than previously planned and will seek to extend its exclusive right to file a bankruptcy reorganization plan until Feb. 28.

"Kodak is making good progress toward emergence from Chapter 11, taking significant actions to reorganize our core ongoing businesses, reduce costs, sell assets, and streamline our organizational structure," Chief Executive Antonio Perez said.

Kodak filed for Chapter 11 protection in January, blaming an inability to attract buyers for its patents, the burden of retiree benefits, a weak economy and moves by vendors to cut ties to the company.

It said it will further reduce its workforce by at least 1,200 employees, which is 200 more than it said it would cut earlier this month. Kodak estimates that the 23% headcount reduction will result in savings of more than $340 million per year and a smaller workforce of about 13,100 employees.

It added that while the sale process for its personalized imaging and document imaging businesses is still in its early stages, "there has already been significant interest among potential buyers for these businesses."

Earlier this month, Kodak revealed a new management structure, under which co-President Philip J. Faraci and Chief Financial Officer Antoinette P. McCorvey will leave the company.

Kodak has previously said it will phase out its capture-devices business, which includes digital cameras, pocket video cameras and digital picture frames, during the first half of this year as it focuses its consumer business on retail and desktop-inkjet printing.

Kodak plans to have three divisions, including one that houses the businesses on the selling block. A digital-printing and enterprise segment will include high-volume printers and other equipment, while the graphics, entertainment and commercial-films segment supplies movie studios and other business customers.

Last month, Kodak blamed steep reorganization costs for a wider second-quarter loss as revenue declined 27%.

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September 28, 2012 at 9:46 AM