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Kodak posts smaller loss, lower sales in fourth quarter

By MIKE DICKINSON - 3/19/2014 4:19:35 PM

Eastman Kodak Co. reported a net loss of $63 million in the fourth quarter, down from $402 million a year ago. The report released Wednesday after the market closed reflects the first full quarter of results since the company emerged Sept. 3 from Chapter 11 bankruptcy.

The company (NYSE: KODK) logged $607 million in revenues for the quarter, down from $739 million a year earlier.

Kodak ended the year with $844 million in cash and debt of $678 million, the company said.

For the full year, Kodak logged sales of $2.35 billion, down 14 percent from $2.72 billion. The 2013 numbers included both the current company’s results and the pre-emergence results.

Kodak posted a profit of $1.99 billion in 2013, compared with a loss of $1.4 billion in 2012. The 2013 profit included a $2.01 billion net gain in reorganization items as well as a gain of $535 million related to the sale of its digital imaging patent portfolio. Those gains were offset by a $77 million non-cash charge.

The business emergence plan revenue projection for 2013 was roughly $2.5 billion.

“We had significant year-over-year improvement in our operating performance, but our sales fell short of our plan,” said Becky Roof, chief financial officer, in a statement. “The decline was primarily due to the accelerated decline in our motion picture film business, the decline in revenues in our consumer inkjet business with the end of printer sales and the loss of revenue while we were in reorganization.”

Kodak’s new CEO, Jeffrey Clarke, focused his comments on 2014.

“I am excited about the strong increases we are seeing in revenues from our emerging technology businesses that will create the foundation for Kodak’s future growth,” he said in a statement. “We expect to mitigate the earnings declines in some of our mature businesses with improved performance from our strategic technology businesses. I also believe there are significant opportunities to improve the productivity and effectiveness of our sales, manufacturing and administrative functions.”

The company estimates revenue in 2014 will be $2.1 billion to $2.3 billion. It also projects substantial year-over-year sales growth in its emerging technology businesses, led by digital printing, packaging and functional printing; stability in its enterprise services and graphics communications businesses; and revenue declines for motion picture film and consumer inkjet printer ink sales.

The company expects to achieve earnings from continuing operations in the range of a loss of $40 million to breakeven. It also expects capital expenditures of some $50 million.

Clarke last week said part of his focus will be investing in new technologies.

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