Kodak Shows Earnings Improvement in Second Quarter; Key Strategic Technology Products Generate Solid Growth
(August 5, 2014) Rochester, NY -- Highlights:
Net loss of $62 million is a $162 million improvement from $224 million net loss in the previous-year quarter.
Key products in packaging, digital plates, digital printing and workflow software are meeting expectations for growth in revenue and margins.
Liquidity remains strong with cash of $768 million.
The company continues to expect that it will meet projections for 2014 of revenue between $2.1 and $2.3 billion and Operational EBITDA between $145 and $165 million.
Kodak expects to return to year-over-year revenue growth for the second half of 2014.
Eastman Kodak Company (NYSE: KODK) today reported a net loss of $62 million for the second quarter of 2014, a $162 million improvement from the $224 million net loss in the previous-year quarter.
Revenue in the quarter was $525 million, a decline of 10% from the $583 million of the previous-year quarter, with more than two-thirds of the decline attributable to declines in the Consumer Inkjet and Entertainment and Commercial Films mature businesses.
“Our progress continues. Kodak’s overarching imperative is to achieve the growth potential of our strategic technology businesses,” said Jeff Clarke, Chief Executive Officer. “Our products in packaging, digital printing, digital plates and workflow software form the foundation of the new Kodak, and are meeting our expectations for sales and margin growth. We have taken significant steps to simplify processes and reduce costs, which also will contribute to Kodak’s long-term success.
“In cooperation with our partners UniPixel and Kingsbury, we have made significant progress toward bringing our functional printing products into commercial production. We have also worked with our motion picture film customers to better position that business going forward. While we are currently behind our expectations in these businesses, these actions will position us well for 2015 and beyond.
“Based on a detailed review of first-half results, product and service pipelines, brand licensing and intellectual property opportunities, and anticipated cost savings, we believe we will be within the range of our projections of between $2.1 and $2.3 billion in revenue and Operational EBITDA of $145 to $165 million for the year.”
“For the second half, we expect Kodak to return to year-over-year revenue growth on the strength of anticipated double-digit growth in our strategic technology businesses.”
John McMullen, Chief Financial Officer, noted that liquidity remains strong with cash of $768 million. Net cash used in operating activities was $88 million for the second quarter, an improvement of $55 million from the previous-year quarter. Year-to-date, net cash used in operating activities is $270 million less than in 2013. Operational cash flow is expected to be positive for the second half of the year.
Source: Eastman Kodak Corporation