Kodak Reports Revenue Decline for Quarter, Digital Profits Improve
Other second-quarter 2010 details:
• The company’s second-quarter loss from continuing operations, before interest expense, other income (charges), net, and income taxes was $100 million, a $19 million improvement as compared to a $119 million loss in the year-ago quarter. This was driven by operational improvements, including productivity gains, and lower restructuring charges.
• Gross Profit improved to 19.3% of sales, as compared to 18.5% in the year-ago period. This increase in margin was driven by continued productivity improvements.
• Selling, General and Administrative (SG&A) expenses were $313 million in the second quarter, down 3%, from $324 million in the year-ago quarter.
• Research and Development expenses were $81 million in the second quarter, as compared to $84 million in the year-ago quarter, as the company focuses research dollars on its core growth businesses.
• Second-quarter 2010 cash generation, before restructuring payments, reflected a use of $170 million. This compared with cash usage on the same basis of $136 million in the year-ago quarter. This corresponds to net cash used in continuing operations from operating activities on a GAAP basis of $173 million in the second quarter, compared with net cash used of $161 million in the second quarter of 2009. As has been the case in previous years, the company expects to generate the majority of its cash flow during the second half of the year, consistent with its historic seasonal pattern.
• Kodak held $1.3 billion in cash and cash equivalents as of June 30, 2010, compared with $1.1 billion as of June 30, 2009.
• The carrying value of the company’s debt stood at $1.3 billion as of June 30, 2010, with total debt maturities of approximately $1.4 billion, including amounts classified as equity.
Segment sales and earnings from continuing operations before interest, taxes, and other income and charges (segment earnings from operations), are as follows: