For the first quarter, Kodak reported a loss from continuing operations of $360 million, or $1.34 per share, and a Net Loss of $353 million, or $1.32 per share. First-quarter sales were $1.477 billion, a 29% decline from the year-ago quarter, including approximately 6% of unfavorable foreign exchange impact.
“In the first quarter, our consumer inkjet printer hardware and ink revenue grew by more than 100% in a market that declined with the overall economy. We also just announced the fifth beta site for our innovative Stream inkjet technology printhead, which is ahead of plan and which gives us increased confidence that we will have a full Stream press available by early 2010. Our cash usage during the quarter was consistent with our seasonal trend, we have the financial resources to fully execute our business strategy, and we are maintaining our full-year goals.” Said Antonio M. Perez, Chairman and Chief Executive Officer, Eastman Kodak Company.
“Despite the ongoing impact of the global recession, Kodak continues to bring to market innovative products that customers are embracing, and we are gaining or maintaining market share.”
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 first-quarter sales were $369 million, a 33% decline from the prior-year quarter, including approximately 5% of unfavorable foreign exchange impact. First-quarter loss from operations for the segment was $157 million, compared with a loss of $111 million in the year-ago quarter. The first-quarter loss was driven primarily by market-related volume declines, including inventory resets by retailers and price/mix impacts, including lower intellectual property licensing royalties, and unfavorable foreign exchange. This was partially offset by improved profitability in consumer inkjet systems, driven by a more than 100% revenue increase in consumer inkjet printer hardware and ink along with lower costs as a result of the company’s move to a more efficient product platform, and reduced SG&A and R&D expenses across the segment. Kodak continues to forecast an average of $250 million to $350 million in intellectual property licensing revenue in 2009 and for the next few years.
- Graphic Communications Group first-quarter 2009 sales were $603 million, a 26% decline from the first-quarter of 2008, including approximately 6% of unfavorable foreign exchange impact. This revenue decrease was primarily driven by a market-related decline of 30% in Prepress Solutions and associated workflow, including inventory resets by distributors,and a 12% price/mix-related decline in digital printing. First-quarter loss from operations for the segment totaled $60 million, compared with a loss of $1 million in the year-ago quarter. This earnings decline was primarily driven by lower volume and price/mix across several product lines, along with a negative impact from foreign exchange, partially offset by reductions in SG&A and R&D costs.
- Film, Photofinishing and Entertainment Group first-quarter sales were $503 million, a 31% decline from the year-ago quarter, including approximately 7% of unfavorable foreign exchange impact. First-quarter earnings from operations for the segment were $8 million, compared with earnings of $26 million in the year-ago period. These earnings results were driven by declines in consumer film sales volumes, price/mix across several product lines and unfavorable foreign exchange impacts, primarily in Entertainment Imaging, partially offset by significant cost reductions and the impact of previously announced changes in post-employment benefits.