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Kodak forecasts operating cash flow for 2013

October 15, 2012

OEM’s US operating forecast to lose $110 million in first six months of 2013, with total operating cash flow estimated at $33 million.

Kodak has published its 2013-2015 cash flow forecast for its Commercial Imaging business, reports PrintWeek, with the OEM’s operating cash flow expected to “remain in the red for all but two of the next 10 months”, the largest monthly loss being in January when the company is expecting to lose $49 million (€37.8 million).

A total operating cash flow of $33 million (€25.5 million) on revenue of $1.2 billion (€926 million) has been forecast for the first half of 2013, although Kodak’s US operation is due to lose $110 million (€84.8 million).

Despite the poor outlook for the first half of 2013, the forecast goes on to predict significant improvement for the rest of the year, with revenues of $1.5 billion (€1.15 billion) and total operating cash flow of $138 million (€106.5 million). This improvement is set to continue into 2014 and 2015, which are forecast to have total operating cash flow of $243 million (€187.5 million) and $285 million (€220 million) respectively on revenues of $2.8 billion (€2.16 billion) and $3 billion (€2.3 billion).

However, the article points out that “while the figures have been adjusted to reflect the impact of the sale of certain business units and estimated cost savings from the company’s restructuring programme […]they do not reflect the cash costs arising from its domestic and foreign pensions and other post-retirement benefit obligations”.

In a statement, Antonio Perez, CEO of Kodak spoke optimistically on the company’s planned emergence from Chapter 11 bankruptcy: “As we move forward to emergence and explore an array of financing options, we believe there is confidence and interest among the financial community in our Commercial Imaging business and its future business plans.

“We are gratified that there appears to be interest among several potential lenders to finance this business and its emergence, and with this disclosure, we are now better positioned to explore these funding opportunities.”

The Recycler reported recently on an interview with Perez in which he details reasons for Kodak filing for bankruptcy in January, as well as reporting last week on the company’s plans to terminate part of its retiree benefits.

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