In addition to the targeted cost reduction program announced earlier this year, US-based employees of the company will take one week of unpaid leave during 2009.
Kodak’s Consumer Digital Imaging Group (CDG) recorded sales of US-$ 369 million during the first quarter, a decline of 33 percent compared with the same period last year. The loss from continuing operations increased from US-$ 111 million in the first quarter 2008 to US-$ 157 million. According to Kodak, the decline is mainly due to weak consumer spending which resulted in a drop in sales by 44 percent in the digital capture and devices segment. Net sales of Kodak’s Retail Systems Solutions, which includes kiosks and related media as well as the APEX dry lab systems, decreased 21 percent in the first quarter of 2009, mainly due to lower media volume, unfavorable price mix and unfavorable foreign exchange rates. The decline in media volumes was largely driven by inventory contraction at major US retailers, whereas global consumer demand increased slightly, Kodak said. Net sales of Consumer Inkjet Systems increased significantly, the company pointed out. Sales of Kodak’s Film, Photofinishing and Entertainment Group (FPEG) decreased 31 percent to US-$ 503 million, mainly due to decreasing sales in the film capture and traditional photofinishing businesses, which a decline of 49 percent and 30 percent, respectively. FPEG’s earnings from operations declined by 69 percent to US-$ 8 million.
Kodak’s Graphic Communications Group recorded sales of US-$ 603 million in the first quarter, a decline of 26 percent, mainly due to weak demand in the global printing industry. The operating result of the group decreased from a loss of US-$ 1 miilion in the first quarter 2008 to US-$ 60 this year.
For the full year 2009, Kodak’s CEO Antonio Perez upholds his forecast of an overall revenue decline in the range of 12 to 18 percent with earnings before interest, taxes, depreciation, amortisation and restructuring costs of US-$ 457 million to US-$ 675 million.