KODAK First Quarter 2009 Earnings

Film Photography Kodak News Photography Business Printers & Printing Uncategorized

KodakThis morning KODAK announced earnings and financial information via a conference call and webcast. Eastman Kodak Company Chairman and CEO Antonio M. Perez and CFO Frank Sklarsky in an Earnings Conference call that lasted a few minutes over an hour reported on Kodak’s First Quarter – 2009 financials.

Kodak, a marquee name in the photography and imaging business, has experienced impact from economic and business conditions that have been seen around the world. Sales declines and Foreign Exchange fluctuations contributed to lower revenues. There was unexpected strength in certain revenues that did not fit with seasonal variations. First Quarter trends are usually lower as year end sales are the strongest and there is a downturn that follows. KODAK did have a very poor 4Q 2008.

CEO Perez and CFO Sklarsky emphasized topics regarding cash management and conservation. Dividend suspension and compensation reductions, (the execs are taking a pay cut) were two methods along with further reductions in personnel that have been implemented to manage cost and cash outlay. The two officers appeared satisfied with the cash expenditures and the in excess of $1Billions US on hand in cash reserve at the conclusion of the 1Q-2009.

Kodak is pursuing a new model with an approximate %200 business/sales revenue increase in inkjet printing according to statement by Perez. There current Kodak customer cartridge usage of about 7.9 yearly vs the industry average of less than 4 indicates that the lower cost and more efficient ink pricing is attracting customers who use the printers at a significantly higher rate than is typical. If this will continue or is an effective new business model remains to be seen and little additional formal guidance was offered.

Kodak considers their Stream (- click for added information from Kodak ) Printing technology to be a core business that will be emphasized for future revenue growth.

Commercial Printing business has suffered some declines. Details regarding this sector are also seasonally, Forex, and economically impacted. The plate business has suffered from the 2008 decline in commercial printing, particularly during the 2008-4Q.


Kodak’s photography and printing services have been in recent years separated into the Consumer Digital Imaging and Film, Photofinishing and Entertainment Groups.

Digital Cameras are in CDI and experienced little decline in volume, but sales were greater in the lower end and thus lower margin models. Retailers have not been restocking at previous levels, again reflecting difficult times in business.

Film, Photofinishing and Entertainment, yes you film fans at Photography Review I finally got to this section, had earning of $8 Million on sales of $503 Million which is a staggering 31% decline from the previous quarter in 2008 . What is called print film sales increased in the Entertainment group, but originating film was down dramatically in sales. Copies of movies/films are being made but new movies are not being currently shot. Much of this is related to the SAG labor issues. Photofinishing including Kiosk business has declined. Details of 1Q-2009 vs, 1Q-2008 are at the website.

Questions were primarily of the financial and investment variety with one that did lean towards the photography business, but with a more general leaning as to market strength in the future.

This conference call and webcast will be available for replay via this link for approximately a week -

Kodak Earning Conference Call web cast replay for 1Q -2009.

Information including PDF documents of financial reports and SEC filings are accessible from KODAK through web links at the Kodak Web site. Added information on topics in this article are also resources that Kodak provides in the links listed.

Additional Resources and Links for KODAK

Kodak Film & Digital Camera User Reviews
Kodak – Our Company Home
Kodak – History
Kodak – Science and Technology
More Kodak News & Articles

April 30, 2009 CDPrice -’drg’ for Photography Review

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