Eastman Kodak announces 2012 results

Excluding reorganization and restructuring costs totaling $ 1.07 billion, the loss for the year would have been $ 308 million, according to Kodak. The company’s commercial Imaging segments (Digital Printing and Enterprise and Graphics, Entertainment and Commercial Films), which will be Kodak’s strategic focus in the future, recorded sales of US$ 2.682 billion, a minus of 38.2 percent compared with 2011, mainly due to unfavorable price/mix in Graphics, competitive pricing within the prepress solutions industry, increased costs within Entertainment Imaging & Commercial Films driven by lower production volumes and volume declines within Digital Printing attributable to lower placements of commercial equipment. The operating loss for the Commercial Imaging segments (Digital Printing and Enterprise and Graphics, Entertainment and Commercial Films) improved by $ 278 million in 2012 to US$ 244 million.

The Personalized and Document Imaging Segment recorded sales of US$ 1.432 billion, a decline of approximately 20% compared with 2011, primarily due to reduced demand for paper and output systems (-8%) and consumer film (-2%). Also contributing to the revenue decline was lower revenue within Intellectual Property (-9%) due to the $ 61 million license revenue reduction reflecting sharing, with licensees, of the withholding tax refund received in the first quarter of 2012. As a result, the segment recorded a loss from operations of US$ 56 million, compared with a profit of US$ 75 million in the previous year.

“We progressed in 2012 by maintaining absolute focus on our customers,” commented Antonio M. Perez, Chairman and Chief Executive Officer of Eastman Kodak Company. “We earned our customers’ continuing loyalty, and look forward to moving ahead with even deeper business relationships built around the industry’s most comprehensive and innovative portfolio of solutions. We also optimized our use of the Chapter 11 process, which offers valuable restructuring advantages despite the many demands it also imposes. Our momentum continues as we work to file our Plan of Reorganization and then complete the final actions that will enable us to emerge from Chapter 11 in mid-2013.”

Eastman Kodak Company’s worldwide cash balance was US$ 1.14 billion at the end of 2012.