Eastman Kodak Company: high loss in the third quarter

Total sales increased five percent to US-$ 3.55 billion in the third quarter, with a 47 percent increase in digital revenue to US-$ 1.888 billion. Sales of the traditional products declined 20 percent to US-$ 1.661 billion. The company’s loss from continuing operations in the quarter was US-$ 103 million, compared with earnings from operations of US-$ 3 million in the year-ago quarter.

Kodak’s Digital & Film Imaging business recorded total sales of US-$ 1.995 billion, down 16 percent. Earnings from operations for the segment were US-$ 108 million, compared with US-$ 230 million a year ago. Sales of Kodak Picture Maker Kiosks and related media showed a 48 percent increase, while the turnover with home printing products and media, including Koak EasyShare Printer Docks, grew 45 percent. Sales of consumer digital capture products, including Kodak EasyShare cameras, recorded a 20 percent increase.

Kodak’s Graphic Communications Group reached sales of US-$ 886 million, up 158 percent, largely reflecting the acquisition of KPG and Creo. Earnings from operations in the third quarter were US-$ 15 million, compared with a loss of US-$ 16 million in the year-ago quarter.

The sales of Kodak’s Health Group were down one percent to US-$ 635 million with earnings from operations of US-$ 90 million, after US-$ 106 million in the same period last year.

“As I indicated at our investor meeting on September 28, we anticipate that more than 40 percent of the company’s total digital revenue in 2005 will occur in the last four months of the year, reflecting the seasonality common to digital markets and the company’s acquisitions earlier this year,” Perez said. “As those sales occur, we will enjoy increased digital earnings, as September’s performance shows.”