Kodak Reaffirms Plan to Be Profitable Starting in 2012
• 2011 GAAP loss from continuing operations in the range of $300 million to $100 million;
• A year-end cash balance of $1.5 billion to $1.6 billion, after taking into account all cash actions, including modest debt payments due during 2011.
Kodak’s Core Growth Businesses: Gaining Market Share and Achieving Profitability
Kodak is well-positioned in the consumer digital imaging and graphic communications markets, with a portfolio of innovative products and services that offer unique value propositions. The company’s core digital growth businesses—Consumer and Commercial Inkjet, Workflow Software & Services, and Packaging Solutions—together grew 18 percent during 2010.
Between 2011 and 2013, the company expects revenue from these businesses to more than double, with annuity sales, from ink and consumables, growing as a percentage of revenue. In 2013, Kodak expects revenue from these businesses will approach $2.0 billion, with positive earnings.
On the consumer side, this performance will be driven by an expanding portfolio of innovative and differentiated consumer inkjet products that will be sold through an expanding global retail network. During 2010, Kodak outpaced the market in consumer inkjet printer sales by growing 45 percent, while maintaining a 30 percent price premium. During 2011, Kodak expects to grow printer unit sales by 50 percent and to again double ink gross profit dollars.
As the commercial printing industry continues to transition from traditional to digital technology, Kodak is uniquely positioned with revolutionary products and customized services that help grow customers’ businesses and Kodak’s business along with them.
Commercial inkjet growth will be driven by the company’s innovative Prosper inkjet portfolio, including the Prosper 1000 Press, Prosper 5000XL Press, and the Prosper S10 Imprinting System, all of which offer the industry’s highest-speed inkjet printing with quality, cost, and media options that rival offset printing. Kodak’s Prosper technology also provides the ability to print variable data, which offset cannot provide, and which creates new business opportunities for commercial printers.