Kodak to exit consumer inkjet printer business

“Kodak is making good progress toward emergence from Chapter 11, taking significant actions to reorganize our core ongoing businesses, reduce costs, sell assets, and streamline our organizational structure,” said Antonio M. Perez, Kodak Chairman and Chief Executive Officer. “Steps such as the sale of Personalized Imaging and Document Imaging, and the Consumer Inkjet decision, will substantially advance the transformation of our business to focus on commercial, packaging & functional printing solutions and enterprise services. As we complete the other key objectives of our restructuring in the weeks ahead, we will be well positioned to emerge successfully in 2013.”

Kodak said it remains committed to its significant installed base of consumer inkjet printer customers, who recognize the value proposition of affordable ink, high-quality output because of Kodak’s unique pigment-based inks, and advanced features including cloud printing. The company will provide its customers and retail partners the same level of service and support they have come to expect from Kodak.

As a result of the decision, the Company currently expects to incur total charges of approximately $90 million, including $20 million of charges related to separation benefits, $32 million of non-cash related charges for accelerated depreciation and asset write-offs and $38 million in other cash related charges associated with this action. The Company estimates that approximately $9 million of the total charges for separation benefits will require cash expenditures and that the remainder will be provided in the form of special termination benefits from the Company’s defined benefit pension plans.