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Eastman Kodak Co.’s second-quarter loss grew as revenues fell, but the company said its operating results improved and are ahead of its plan.
Kodak logged a net loss of $299 million or $1.10 a share, versus $179 million or 67 cents a share in the second quarter of 2011, the company reported Friday afternoon. Before reorganization items, the net loss was $139 million, an improvement of $40 million compared with a year ago.
The profitability of its two segments—commercial and consumer—improved by a total of $82 million, with operating expenses outpacing revenue declines. The second-quarter results from continuing operations before interest expense, reorganization items, other charges and income taxes improved by $79 million to a $95 million loss.
Revenue of $1.1 billion was down 27 percent from the year-ago quarter. The company cited its exit from the digital-camera business and reduced sales of traditional products, among other factors.
Kodak’s cash balance on June 30 was nearly $1.3 billion, down from $1.4 billion at the end of the first quarter but up from $957 million on June 30, 2011.
“I am pleased with our progress, and our operating results are both improved from last year and also ahead of our plan,” said Antonio Perez, chairman and CEO, in a statement. “We are committed to sustaining the progress required to successfully emerge from Chapter 11 (bankruptcy).”
Both segments posted improved numbers in the second quarter compared with the same period a year earlier. On an operating basis, the commercial segment lost $26 million versus $39 million, while the consumer segment’s loss fell to $27 million from $96 million.
Commercial-segment sales totaled $684 million, compared with $865 million a year ago; consumer-segment sales were $393 million, versus $620 million the prior year.
Kodak said second-quarter severance costs stemmed from the elimination of some 350 positions companywide, including roughly 175 manufacturing/service positions and 175 administrative positions. For the six months ended June 30, it reported the elimination of some 2,050 positions, including approximately 1,375 manufacturing/service positions, 425 administrative positions, and 250 research and development positions.
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