August 8, 2013
Democrat and Chronicle reported on Kodak’s 2Q2013 results, which included sales of $583 million (€436.4 million), a 17 percent drop from the previous year. However, the site notes that the OEM is, “if not exactly close”, then “getting closer” to profitability after declaring bankruptcy in January 2012.
Sales were down in “motion picture” film, digital printing plates and desktop inkjet, which the OEM is moving away from, but on a positive note, losses were $224 million (€167.6 million), an improvement from the losses of $299 million (€223.8 million) from last year’s 2Q results.
Commercial printing sales increased and gross profit improved as well, to $133 million (€99.5 million) from $101 million (€75.6 million) last year, with Kodak attributing this to “price increases, lower manufacturing costs” and discontinuation of desktop printers. However, gross profits “don’t account” for costs such as research and development or bankruptcy payments, which total $72 million (€53.8 million) a month, and job cuts have continued despite improvements.
The OEM is however in the process of selling its Document Imaging and Personalised Imaging businesses, and the news site notes that if the latest results removed those businesses, the OEM would only have seen losses of $208 million (€155.6 million), meaning it would have been “far closer to breaking even”, a positive sign for the future, with Kodak expecting to come out of bankruptcy in September.
Outgoing CEO Antonio Perez stated of the results: “Everyone at Kodak is focused on achieving our (financial) goals for 2013 and on emerging from Chapter 11 as a company that – having removed excess legacy costs and infrastructure and exited non-core businesses – is leaner, financially stronger, and poised for growth with a great portfolio of businesses in commercial imaging.”
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