Kodak reports second quarter results

These results reflect separation of the Personalized Imaging and Document Imaging businesses, which are being spun off to Kodak Pension Plan, the pension plan for U.K. employees, and the discontinuation of certain consumer businesses, including Kodak Gallery and digital cameras. With discontinued operations included, the consolidated net loss for the quarter was US$224 million.

Kodak’s Graphics, Entertainment and Commercial Films (GECF) business reported a US$5 million segment loss, compared to a US$26 million loss in the prior-year quarter. Digital Printing and Enterprise (DPE) reported a US$13 million segment loss compared to a US$61 million loss in the second quarter of 2012.

“In this quarter we continued our progress in recreating Kodak as a technology company focused on imaging for business, and serving customers worldwide with breakthrough solutions and enterprise services,” said Antonio M. Perez, Chairman and Chief Executive Officer. “At the same time, we moved forward significantly with our restructuring, and we remain on track to emerge in the third quarter.”

Sales for the continuing operations in the second quarter were US$583 million, a decline of 17% year-on-year. GECF had sales of US$371 million, a decline of 17%, reflecting volume declines in Entertainment Imaging and Commercial Films, as well as lower sales for digital plates as the business focused on profitable accounts. DPE had a revenue decline of 11% from the prior-year quarter, primarily attributable to discontinuance of consumer inkjet printer production and lower sales of ink for the installed base of consumer inkjet printers. Partially offsetting these declines was an increase in sales within the commercial inkjet printing business.

The gross profit margin in the quarter from continuing operations improved to 23%, an improvement of more than nine percentage points compared to the same period in the previous year. Kodak also noted that it remained on track through the first half with its Adjusted EBITDA and cash goals.

“Our team is committed to continuing the improvement required to emerge in the coming weeks as a profitable and sustainable company,” Perez said. “Everyone at Kodak is focused on achieving our EBITDA and cash goals for 2013 and on emerging from Chapter 11 as a company that – having removed excess legacy costs and infrastructure and exited non-core businesses – is leaner, financially stronger, and poised for growth with a great portfolio of businesses in commercial imaging.”