Eastman Kodak: Profit in the third quarter

The company’s third quarter earnings from continuing operations before interest, other income (charges), net, and income taxes were US-$ 20 million, compared with a loss of US-$ 11 million in the year-ago quarter. Digital earnings improved by US-$ 54 million to US-$ 82 million.

Kodak’s Consumer Digital Imaging Group recorded sales of US-$ 1.123 billion in the third quarter (plus 1 percent) with revenues from digital products growing by 16 percent versus the prior year, driven by growth in digital capture, kiosks and related media. Earnings from operation improved by US-$ 13 million to US-$ 10 million. According to a press release, the company continues to expand retail distribution for its new consumer inkjet printer line, which is now available at more than 7,600 retail outlets worldwide. Kodak remains focused on selling 500,000 units this year and achieving US-$ 1 billion in sales with its inkjet products in 2010.

While the Film Products Group showed a decrease in sales of 18 percent to US-$ 488 million in line with expectations, the Group recorded earnings from operations of US-$ 122 million, compared with US-$ 115 million in the year-ago quarter. Sales of Kodak’s Graphic Communications Group were up 5 percent to US-$ 928 million, mainly driven by increased sales of digital plates , Nexpress digital color printing presses and digital printing consumables. Earnings from operations improved by US-$ 16 million to US-$ 42 million. The company upholds its goal for 2007 full-year digital earnings from operations of US-$ 150 million to US-$ 250 million and its goal for total earnings from operations of US-$ 300 million to US-$ 400 million, corresponding to a GAAP loss from continuing operations before interest, other income (charges), net, and income taxes for the full year of US-$ 425 million to US-$ 525 million. The company forecasts its 2007 digital revenue growth to be at the high end of the previously communicated range of 3 percent to 5 percent, with the total 2007 revenue decline expected to be at the low end of the range of 4 percent to 7 percent.