Tags: US | Earns | Eastman | Kodak

Kodak Posts Narrower 3Q Loss of $43m

Thursday, 28 Oct 2010 09:10 AM

ROCHESTER, N.Y. (AP) — Vigorous inkjet printer sales, lower costs and a licensing gain from a rich array of digital-imaging inventions narrowed Eastman Kodak Co.'s third-quarter loss to $43 million.

Kodak's adjusted earnings handily beat Wall Street expectations.

In pre-market trading, Kodak shares jumped 6.8 percent, or 27 cents, to $4.24.

The photography and printing company said Thursday it lost the equivalent of 16 cents a share in the July-September period. That compared with a loss of $111 million, or 41 cents per share, a year earlier.

Sales fell 1 percent to $1.76 billion from $1.78 billion, though revenue from digital businesses rose 10 percent to $1.33 billion, boosting profitability in that segment for the fourth straight quarter. Revenue gains were driven by an unspecified, intellectual property licensing deal and a 26 percent jump in sales of consumer inkjet printers and ink.

Traditional film-based revenue slid 25 percent to $431 million from $572 million, hit by industry-related volume declines and rising costs for silver and aluminum.

Excluding items, Kodak said it lost $5 million, or 2 cents per share. Analysts polled by Thomson Reuters, whose estimates typically exclude items, expected Kodak to lose 31 cents per share on sales of $1.61 billion.

The 129-year-old photography pioneer, based in Rochester, N.Y., is banking on replacing the huge profits it once made from photographic film with ink revenue from promising new lines of digital inkjet printers for both consumer and commercial markets.

Those investments have yet to pay off. Kodak doesn't expect to generate its first profits from home inkjet printers until 2011, or from a bevy of versatile, high-speed digital presses until 2012.

Kodak is relying on leaner costs to see it through its transition into a digital powerhouse. It has chopped almost 50,000 jobs since 2002 and its work force of 20,300 is its smallest since the 1930s.

After a $3.4 billion turnaround from 2004 to 2007, Kodak's momentum was stalled by the economic downturn.

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ROCHESTER, N.Y. (AP) — Vigorous inkjet printer sales, lower costs and a licensing gain from a rich array of digital-imaging inventions narrowed Eastman Kodak Co.'s third-quarter loss to $43 million.Kodak's adjusted earnings handily beat Wall Street expectations.In...
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2010-10-28
 

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