Kodak announced vastly improved second quarter operating figures in August which are underpinned by the improving health of its Consumer Digital Imaging (CDI) Group, as the transformation of the company to one centred around digital technology nears its conclusion.
The CDI Group is responsible for the EASYSHARE suite of products, including the AiO (All in One) inkjet printers and their associated low-cost ink cartridges launched in February this year. Its losses have been reduced by over $78million to only $55 million, making a substantial contribution to the company’s overall $121 million year-on-year improvement.
Kodak wants to sell over 500,000 AiO units this year and is increasing distribution and manufacturing capacity in line with the continuing strength of consumer demand for the product.
Kodak’s Chairman and Chief Executive, Antonio M. Perez, said: “Our product portfolio is more balanced. We have products that we didn’t have before, and that serves our customers better.”
“We continue to expect a strong second half, with double-digit sales growth in both of our major digital businesses, driven by a stronger-than-ever portfolio of digital products, including our revolutionary consumer inkjet printing system, new image sensors, workflow software, and an expanded line of NEXPRESS digital colour printing presses. I’m pleased with our first-half results, and I remain confident in our ability to achieve our 2007 key strategic objectives.” He continued.
Consumer Digital Imaging Group results improved by $78 million to a loss of $55 million, compared with a year-ago loss of $133 million. This improvement was driven by changes in product portfolio management and lower SG&A expenses, partially offset by scaling of the manufacturing and new product introduction activities in the Inkjet Systems business. Revenues for the second quarter totalled $1.000 billion, down from $1.105 billion in the year-ago quarter. This largely reflects anticipated decreases in traditional photofinishing products and services at retail, partially offset by growth in consumer imaging services and imaging sensors. The new consumer inkjet printer line continues to receive strong customer response and the company continues to expand retail distribution as it increases manufacturing capacity.