Eastman Kodak reports 3rd-Quarter results

Earnings from continuing operations were $2 million, compared with a loss of $123 million in the year-ago quarter. The company reported a third-quarter net loss of $37 million, or $0.13 per share, including after-tax restructuring costs of $202 million, or $0.70 per share. In the 3rd quarter 2005, Eastman Kodak recorded a net loss of $914, including a $778 million non-cash charge to record a valuation allowance against the net deferred tax assets in the U.S.

Digital earnings were in the 3rd quarter were $105 million, compared with $7 million in the same period a year ago, marking the first time that Kodak’s quarterly digital earnings growth exceeded the quarterly decline in traditional earnings, the company said.

Graphic Communications Group sales were $880 million, slightly down $ 6 million, with earnings from operations of $31 million, compared with $7 million in the year-ago quarter. Consumer Digital Group sales totaled $640 million, down 3%. The operational result of the group improved from a loss of $61 million in the year-ago period, to earnings of $24 million.

Film and Photofinishing System sales were $1.074 billion, down from $1.353 billion in the year-ago quarter, with earnings from operations of $139 million, compared with $174 million in the year-ago quarter.

Health Group sales were $597 million, down 6%, with earnings from operations of $68 million, compared with $96 million a year ago.

For the full year 2006, Eastman Kodak expects a loss from continuing operations of $400 million to $600 million, before interest, other income (charges), net, and income taxes, but including approximately $1.0 billion in pre-tax restructuring charges. According to a press release, this corresponds to digital earnings from operations this year in a range of $350 million to $450 million. The company forecasts 2006 digital revenue growth somewhat below 10%, reflecting the company’s focus on targeted participation in the consumer digital market. Total 2006 revenue is expected to be down approximately 6%.