Struggling Kodak Still Committed to Nexpress
ROCHESTER, NY—A fourth-quarter loss of $137 million has prompted Eastman Kodak to announce that between 3,500 and 4,500 jobs will be eliminated, representing between 14 to 18 percent of its total workforce. The company lost 51 cents a share in the fourth quarter, compared to a 75 cent per share profit ($215 million) during the same period the previous year. Kodak’s Graphic Communications Group posted a $4 million operating loss during the quarter in contrast to its $30 million profit for the same period the previous year. Sales fell 14 percent to $821 million.
Kodak is preparing itself for a potential decline of 12 percent to 18 percent in sales for 2009 due to the impact of the recessionary economy. It is forecasting a loss of $200 million to $400 million.
The company also had to beat back a financial newspaper report (later retracted) that suggested Kodak was considering divesting several assets, including its toner-based Nexpress digital printing operation.
“We are not thinking of divesting any of those businesses. We have to find a way to continue to be in all those businesses without all the risk,” affirmed Antonio Perez, Kodak CEO.
For cost efficiencies and better transparency to clients, Kodak has aligned Nexpress and its ink-jet system company, Kodak Versamark, into a single organization called Kodak Digital Printing Solutions.