Date: Thursday May 1, 2008 02:18:25 pm
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AnonymousInactive
http://www.reuters.com/article/ousiv/idUSN0129253420080501Kodak posts wider-than-expected quarterly lossMay
2008 – Eastman Kodak Co posted a bigger-than-expected quarterly loss
on Thursday as higher silver and aluminum costs and increased spending
on its inkjet printer business weighed on margins.
Shares fell more than 5 percent.
Kodak,
the top maker of photographic film, has completed the major elements of
an expensive transformation into a smaller company that focuses on
digital photography products and services.It reported a first-quarter
loss of $114 million, or 40 cents a share, compared with a loss of $175
million, or 61 cents a share, a year earlier.Excluding special items,
the company’s lost 39 cents a share, far more than the loss of 6 cents
a share expected by Wall Street analysts, according to Reuters
Estimates. Estimates of four analysts ranged from a loss of 18 cents to
a profit of 7 cents, according to Reuters Estimates.Kodak said revenue
rose 1 percent to $2.09 billion, while gross profit margin slipped to
20.3 percent from 20.6 percent in the year-ago period, on significant
increases in silver, aluminum and other raw materials costs.
Analyst
Shannon Cross called the margins “the lowest level seen historically”
and noted that commodity prices played a large part, particularly at
Kodak’s commercial printing unit, which reported an operating loss of
$1 million even as sales rose 4 percent.”Their commercial print
business … has never had a loss — that was supposed to be one of the
crown jewels,” she said. “Its commodities (that hurt it) and investment
in their new inkjet business, and they weren’t able to offset it.”The
raw materials are used in the making of such Kodak products as
traditional film and plates for commercial printers.Spot silver prices
were significantly higher in the first quarter — reaching a 27-year
high in March — driven by strong investment demand and the strength of
gold and other hard assets. Prices have cooled in recent weeks but
remain higher than one year ago.Similarly, demand for aluminum is
robust globally with brisk business from a number of industrial
sectors. Aluminum inventories are expected to remain at low
levels.Kodak reaffirmed its forecast for 2008 of total revenue growth
in the range of flat to 2 percent. The company reported revenue of
$10.301 billion in 2007Kodak shares fell $1.04 percent to $16.85 on the
New York Stock Exchange.
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