Kodak’s sales slide 11 percent, but net loss isn’t as bad
Though some companies around the globe are starting to see their finances improve as the recession tapers off, Eastman Kodak Co. remains hard hit.
The Rochester-based photo and imaging company saw its sales continue to slide in the second quarter of 2010, though its losses are not as severe.
“We are building a new company during a difficult time,” CEO Antonio Perez said today during a conference call with investment analysts. “And we are making progress. I’m pleased with the direction and the pace of our progress.”
The growth of the company’s digital business “makes me optimistic about the future,” he added.
Overall sales for the three months ending June 30 were $1.57 billion, down 11 percent from the same three months a year earlier. And those second-quarter sales in 2009 were down 29 percent from 2008.
After expenses, Kodak lost $167 million, or 62 cents per share, in the recent quarter — better than the $191 million or 71 cents per share it lost a year earlier.
Subtract out what are considered one-time costs, such as money spent on restructuring and legal costs, and Kodak would have lost 51 cents a share. Analysts surveyed by Thomson Reuters had predicted, on average, a loss of 31 cents a share.
Kodak cut 275 positions worldwide during the quarter, including 125 in North America. Kodak is among the Rochester area’s largest employers, with more than 8,000 workers.
Taking a slightly longer view, Kodak’s numbers look somewhat better. For the first six months of 2010 overall, the company’s $3.5 billion in sales are up nearly 8 percent over the first half of 2009, while its net loss of $48 million is a fraction of the $551 million in red ink it saw at this time in 2009.
Business was down across all three of Kodak’s segments — consumer digital imaging; film, photofinishing and entertainment; and graphic communication.
Among the bad news: a sizable drop in sales of the retail photo systems Kodak has in numerous big-box stores and drugstores and continuing big drops in the traditional photo and entertainment imaging businesses.
Among the good news: sales up of image sensors and pocket video cameras. And the inkjet printing business, on which Kodak is staking much of its future, is showing signs of strength. Consumer inkjet printers and ink sales combined were up 50 percent for the quarter.
And Kodak said sales of its digital printing solutions were up 9 percent, driven by more of its Versamark VL printers and Prosper S10 printing systems being out in the field.
Kodak continues to expect revenues this year to total $7.5 billion to $7.7 billion and a loss from continuing operations of $50 million to $150 million — $102 million of that coming from early paying off of some debt.
