Kodak reports $191 million second-quarter loss

Eastman Kodak Co., Rochester, N.Y., reported a second-quarter loss of $191 million on sales of $1.766 billion, compared to $200 million in earnings in 2008. Sales were down 29 percent from the same period last year. The company said the results “reflect the weak global economic climate” but expects results to improve in the second half. and forecasted improved financial results for the second half of the year. The company also said the results reflect the Kodak’s investments in new products and growth businesses.

“While we continue to be challenged by the global recession, we remain committed to our strategy and have the financial resources available to implement our business plans,” says Antonio M. Perez, chairman and CEO, Kodak. “We have every expectation that our cash flow pattern this year will mirror the pattern of previous years, with a sizable increase in cash generation in the second half of 2009…We are successfully focusing on those things within our control – strengthening the return on our cash-generating businesses, further developing our core growth businesses, maintaining and enhancing our leading market share position, introducing innovative new products, and driving a leaner cost structure – all of which will create operating leverage and position Kodak for a stronger second half of 2009.”

Revenue from digital businesses totaled $1.173 billion, a 28 percent decline from $1.636 billion in the prior-year quarter, primarily as a result of the global recession and continued restrictions in the credit markets. Revenue from the company’s traditional business decreased 30 percent to $593 million.

In the Consumer Digital Imaging Group, second-quarter sales were $503 million, a 33 percent decline from the prior-year quarter, including 5 percent of unfavorable foreign exchange impact. Second-quarter loss from operations for the segment was $99 million, compared with a loss of $49 million in the year-ago quarter. The year-over-year variance was driven primarily by price/mix impacts, including lower intellectual property licensing royalties and unfavorable foreign exchange, and market-related volume declines. The company says consumer inkjet revenues were up 44 percent.