Kodak announces second quarter results

According to a press release, Kodak’s second quarter results reflect the weak global economic climate and were also affected by unfavorable foreign exchange effects. “During the second quarter we continued to execute on our strategy, with our consumer inkjet hardware and ink revenue growth significantly outpacing the market”, said Antonio M. Perez, Chairman and CEO of Eastman Kodak Company. “We have every expectation that our cash flow pattern this year will mirror the pattern of previous years with a sizable increase in cash generation in the second half of 2009.”

Kodak’s Consumer Digital Imaging Group recorded sales of US-$ 503 million in the 2nd quarter, a 33 percent decline from the same period last year, including 5 percent of unfavorable foreign exchange impact. Loss from operations for the segment was US-$ 99 million, compared with a loss of US-$ 49 million in the year-ago quarter. Consumer inkjet systems show a 44 percent revenue increase in printer hardware and ink. Sales of Kodak’s Film, Photofinishing and Entertainment Group were US-$ 593 million in the second quarter, a 30 percent decline from the year-ago period. Earnings from operations for the segment reached US-$ 51 million, after US-$ 54 million in the second quarter of 2008. According to Kodak, the results were affected by declines in consumer film sales, price/mix across several product lines and unfavorable foreign exchange effects, primarily in Entertainment Imaging, largely offset by operational improvements in traditional photofinishing, significant cost reductions across the segment, improvement in raw material costs and the impact of previously announced changes in post-employment benefits.

For the second half of 2009, Kodak is targeting digital revenue to grow by 1 to 3 percent and total company revenue to decline 4 to 6 percent. For the full year, the company expects revenues in the ranges that it presented in its February forecast, including a digital revenue decline of 6 to 12 percent and a total revenue decline of 12 to 18 percent. While the company forecasted a 2009 GAAP loss from continuing operations of US-$ 200 million to US-$ 400 million, it now forecasts that GAAP results will be at the low end of this range, reflecting its latest assessment of restructuring charges, interest expense and interest income. The company reiterated its goal of achieving positive cash generation before restructuring in 2009.