Kodak Reports Improved Profits; Inkjet Businesses Show Revenue Growth
• The carrying value of the company’s debt stood at $1.25 billion as of Sept. 30, 2010, with total debt maturities of approximately $1.37 billion, including amounts classified as equity.
Other segment sales and earnings from continuing operations before interest, taxes and other income and charges (segment earnings from operations), are as follows:
• Consumer Digital Imaging Group third-quarter sales were $670 million, compared with $535 million in the prior-year quarter. This performance was driven by increased unit volume in Digital Capture & Devices and Consumer Inkjet, and the successful completion of an intellectual property licensing agreement, partially offset by competitive pricing pressure.
Third-quarter earnings from operations for the segment improved by $171 million to $82 million from an $89 million loss in the prior-year quarter.
• Film, Photofinishing and Entertainment Group third-quarter sales were $431 million, a 25 percent decline from the year-ago quarter, driven by continuing industry-related declines.
Third-quarter earnings from operations for the segment were $20 million, compared with earnings of $47 million in the year-ago period. This decrease in earnings was primarily driven by industry-related declines in volumes and increased raw material costs, partially offset by cost reductions across the segment.
For 2010, Kodak remains focused on three key financial goals, which the company first announced at its February investor meeting: digital revenue growth, earnings from operations, and cash generation. Kodak’s ability to achieve its full-year 2010 goals is predicated upon successful implementation of the company’s new product and marketing programs, continued growth in the company’s major strategic digital growth businesses, continued operational improvements, and ongoing execution of the company’s intellectual property licensing program.
• For 2010, Kodak continues to target total company revenue of $7.5 billion to $7.7 billion.
• Kodak is targeting 2010 segment earnings from operations that will be within the previously communicated range of $350 million to $450 million. This equates to GAAP earnings from continuing operations before interest expense, other income (charges), net and income taxes of $275 million to $375 million.