Kodak Posts Larger-than Expected 2Q Loss, Boosts Digital Business

FOXBusiness

Eastman Kodak (NYSE:EK) reported a second-quarter loss driven primarily by declines in its traditional businesses, though partially offset by improvements in its newer digital segments.

Kodak, which last earned an annual profit in 2004, said its second quarter net loss decreased to $168 million, or 63 cents a share, compared with $189 million, or 70 cents a share, in the same quarter last year. Excluding special items, Kodak reported a loss of 51 cents a share, much worse than average estimates of 32 cents.

Continue Reading Below

Revenue for the camera producer hit $1.57 billion, an 11% decrease from $1.766 billion in the year-earlier period, and falling short of expectations of $1.67 billion. Revenue was boosted by a 6% increase the company’s digital businesses and impeded by a 21% drop in sales in its film, photofinishing and entertainment group.

“We continue to gain share in our growth businesses, maintain cost discipline, and drive improved profitability,” said Kodak CEO Antonio M. Perez, adding that new digital businesses, particularly consumer and commercial inkjet, have continued to “gain traction” with sales growth “outpacing the competition.”

“We remain focused on building a leaner, more competitive company powered by innovative products that compete in large, new markets,” he said.

Reflecting half-year results and an increase in its digital portfolio, the Rochester, New York-based company chose to continue its full-year revenue outlook in the range of $7.5 billion to $7.7 billion.

What do you think?

Click the button below to comment on this article.