Kodak Reaffirms Plan to Be Profitable Starting in 2012
NEW YORK—Feb. 03, 2011—At its annual strategy meeting today with investors, Eastman Kodak will detail plans to complete its transformation into a digital company with sustainable profits by 2012.
Kodak expects that revenue in its core growth businesses—Consumer and Commercial Inkjet Printing, Workflow Software & Services, and Packaging Solutions—will more than double in size by the end of 2013. During this time, Kodak will effectively manage its large, cash-producing businesses, and drive toward sustainable, profitable growth on the strength of its unmatched expertise in materials science and digital imaging science.
Consumer Inkjet will achieve positive gross profit dollars during 2011, with full-year positive operational earnings in 2012, and the company’s Commercial Inkjet business will achieve profitability during 2012.
“The success of our core growth businesses demonstrates that our strategy is working,” said Antonio M. Perez, Chairman and CEO, Eastman Kodak. “Over the next three years, we will continue to improve our digital performance, as our core growth businesses begin to achieve profitability this year and turn profitable as a group in 2013. We are also well-positioned in several large and established digital markets, and we are committed to managing those businesses to maximize earnings and cash generation. We have sufficient resources and the financial flexibility necessary to fully implement our strategy and deliver shareholder value.”
For 2011, Kodak is focused on two key financial metrics:
• Continue to build the scale of its four digital growth businesses—Consumer and Commercial Inkjet, Workflow Software & Services, and Packaging Solutions—and achieve greater than 40 percent aggregate revenue growth from these businesses.
• Achieve positive cash generation before restructuring payments.
On a continuing operations basis, the company is also targeting the following in 2011:
• Operational earnings of negative $200 million to breakeven, on total company revenue of between $6.4 billion to $6.7 billion;