Earnings amounted to $12 million, up from the total of $7 million recorded in 2014.
The $12 million (€10 million) figure signified a $21 million (€18 million) year-on-year comparative improvement, while continuing operations before income taxes improved to a $50 million (€44 million) shortfall, up from 2014’s first quarter loss of $60 million (€53 million).
Net losses were reported at $54 million (€48 million), increasing from $34 million (€30 million) in the first quarter of 2014, with the latter figure including $19 million (€16 million) in income from discontinued operations related to Kodak Alaris. Sales were registered at $427 million (€379 million), down $61 million (€54 million) or 13 percent from $488 million (€433 million) in the first quarter of 2014. The company says “adverse impacts of currency exchange and the expected declines in revenue from legacy products” has caused the shift, which “more than offset” the sales increases in Kodak’s key strategic products.
The Print Systems Division, Kodak’s largest, enjoyed first quarter sales of $254 million (€225 million), dropping $34 million (€30 million) or 12 percent, from $288 million (€256 million) in the 2014 first quarter. This was “driven by the impact of currency exchange and competitive industry pricing”. Revenue was raised to $13 million (€11 million) in the first quarter of 2015 from $12 million (€10 million) in the 2014 period, with “increases in aluminum costs and competitive pricing pressures […] more than offset by cost reductions and manufacturing productivity improvements”.
In turn, the Enterprise Inkjet Systems Division registered $39 million (€34 million) in sales for 1Q2015, a decrease of $9 million (€8 million) or 19 percent from 2014’s first quarter. The drop concurs with “an expected decline in revenues from legacy inkjet printing systems and the impact of currency exchange” in 1Q2014. Revenue was negative $13 million (€11 million) for the quarter, with negative $12 million (€10 million) in the first quarter of 2014.
Jeff Clarke, CEO of Kodak, said: “I am pleased with our first quarter performance and we are clearly seeing the benefits of our new divisional structure. Our continued progress in improving productivity and reengineering our cost structure, with $35 million in year-over-year operating expense savings in the first quarter, is reflected in the improved performance.”
He continued: “Our transition to sustained growth and profitability will become more evident in the second half of the year as we continue to drive revenue growth in key strategic products and leverage our improved operating performance.”
The results are the first to come under the OEM’s new corporate organisational structure, which came into operation at the beginning of 2015.