The OEM grew sales and earnings in the third quarter, but consumer inkjet sales declined.
The results include net earnings of $19 million (€15 million) and a growth in sales of $1 million (€800,378) year-over-year to $564 million (€451 million), despite declines in consumer inkjet and film of around $43 million (€34 million), with forecasts for the year set to see revenue of between $2.1 billion (€1.6 billion) and $2.3 billion (€1.8 billion) due to “strong sales growth achieved for key strategic technology products”.
The OEM’s digital printing and enterprise segment, containing digital printing, packaging and functional printing, enterprise services and solutions and consumer inkjets, saw however a fall in sales of 17 percent from $198 million (€158 million) year-over-year to $164 million (€131 million), said to have been “driven primarily by the decline in the consumer inkjet business”. The unit did however remain at the same percentage of overall revenue, at 24 percent.
The unit’s profit “remained essentially flat”, though “positive impacts” were seen from “inventory revaluation as a result of fresh start accounting being offset by consumer inkjet sales”, which in turn constituted a “lower percentage of the segment’s gross profit dollars, as well as lower sales of consumables in the digital printing business”.
Jeff Clarke, CEO of Kodak, stated: “Our first profitable quarter since our emergence [from bankruptcy] is a milestone. Strategic technology product areas, especially in our graphics business, are showing momentum, and we continue to invest significantly in our technology and to build our installed base.
“However, Kodak continues to operate too closely to our breakeven point. While our costs are down, we will continue to reengineer processes, streamline our organisation, and improve execution and accountability to accelerate and broaden our momentum.”
John McMullen, CFO, added that “Kodak is on track to meet guidance for 2014 revenue of $2.1 to $2.3 billion. Liquidity remains strong, with a cash balance of $744 million (€595 million)”.