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Kodak posts 1st quarterly profit in more than year

Kodak posts 1st quarterly profit in more than year

Eastman Kodak Co. posted its first quarterly profit in over a year, lifted by consumer and commercial inkjet printer sales, leaner costs and royalties on digital imaging inventions. Its shares soared almost 16 percent in premarket trading.
After running up four consecutive quarterly losses, the photography pioneer said Thursday it earned $443 million, or $1.40 a share, in the October-December period. That contrasted with a loss of $918 million, or $3.42 a share, a year earlier.
Sales rose 6 percent to $2.58 billion from $2.43 billion.
Excluding one-time items, Kodak says it earned $1.08 a share. Analysts surveyed by Thomson Reuters expected, on average, a much lower profit excluding one-time items of 18 cents a share on lower sales of $2.38 billion.
Its shares rose 75 cents, or 15.8 percent, to $5.50 in premarket trading.
Kodak drastically cut costs as it underwent a costly transition from film to digital imaging from 2004 to 2007. It was gathering momentum as a digital heavyweight in the fall of 2008 when it ran into the global economic downturn, which undermined sales of both digital and film-based photography products.
"Despite a difficult economic environment, we delivered in 2009," said Chief Executive Antonio Perez. "Our momentum is returning and our strategy is paying off."
Digital sales rose 12 percent to $1.99 billion from $1.78 billion, while traditional film-based revenue fell 10 percent to $589 million from $652 million.
Kodak said its gross profit margin widened to 34.4 percent of sales from 20.4 percent a year earlier. About 6 percentage points of the increase was driven by productivity gains and higher demand for digital plates and thermal paper for retailers, plus productivity gains for digital cameras, consumer inkjet printers, electrophotographic printing and traditional photofinishing.
Another 8 points came from nonrecurring intellectual property licensing agreements.
After a yearlong legal tussle, Kodak negotiated royalty paying deals with Samsung Electronics Co. and LG Electronics Inc. last month. It followed up in January by suing Apple Inc. and Research in Motion Ltd. over digital-camera technology in their iPhone and BlackBerry smart phones.
Kodak expects to generate, on average, $250 million to $350 million in annual intellectual property income from 2009 to 2011.
For all of 2009, Kodak lost $210 million, or 78 cents a share, compared with a loss of $442 million, or $1.57 in 2008. Sales fell 19 percent to $7.6 billion from $9.4 billion. Analysts were expecting a wider loss of $1.47 a share on $7.4 million in sales.
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http://www.kodak.com


Updated : 2021-07-25 08:05 GMT+08:00