Eastman Kodak Reports Deeper Losses in Q1

by Angela Nazworth | April 30, 2012 3:30 am

Eastman Kodak Reports Deeper Losses in Q1

Droopy sales, reorganization efforts and bankruptcy-related[1] expenses resulted in lackluster first-quarter results for Eastman Kodak (PINK:EKDKQ[2]).

The iconic photography company, which was once almost synonymous with the camera, reported losses of $366 million ($1.35 per share) compared to last year’s loss of $246 million (91 cents per share). Revenues of $965 million fell about 27%. The struggling company attributes the falling revenue to its decision to stop selling digital cameras, digital photo frames and pocket video cameras. EKDKQ shares were down about 2% on the news.

As demonstrated by the recent sale of its Kodak Gallery[3] to Shutterfly (NASDAQ:SFLY[4]), the merger of its consumer and commercial business segments and its focus on items like home photo printers and software products, the company is basing its survival chances on becoming a smaller company.

“Kodak is focusing on its opportunities, reducing costs, and fine-tuning the balance between liquidity and growth to enable the enterprise to emerge from its Chapter 11 restructuring in 2013 as a leaner, stronger, and sustainable business,” Antonio Perez,  chairman and CEO, said in a press release[5].

Kodak did see a few positive results thanks to its joint commercial and consumer line. Its cash balance grew to $1.4 billion, which is about a $500 million jump from the end of last year.

Endnotes:
  1. bankruptcy-related: http://investorplace.com/2012/01/eastman-kodak-chapter-11-bankruptcy-ek/
  2. EKDKQ: http://studio-5.financialcontent.com/investplace/quote?Symbol=EKDKQ
  3. recent sale of its Kodak Gallery: http://investorplace.com/2012/04/shutterfly-to-buy-kodak-gallery-for-23-8-million/
  4. SFLY: http://studio-5.financialcontent.com/investplace/quote?Symbol=SFLY
  5. said in a press release: http://www.kodak.com/ek/US/en/Kodak_s_1st_Quarter_Results_Show_Improvement_in_Segment_Profitability_and_Reduced_Operating_Costs.htm

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