Kodak loses 137 million in 4th quarter

[Pickett Wilson]

http://www.startribune.com/science/38593427.html

 

[whickus]

no surprise really, everyone's losing money right now. let's just hope they don't decide to restructure by cutting back or eliminating their film division.

 

[f6andBthere]

If Kodak intend keeping their money tree healthy in the predicted economic downturn they'll need to cut out some deadwood, they will not hesitate to reduce film production IMO. In fact I'd expect it to be one of the first cuts they make.

Freestyle's recently aquired supply of Arista Premium, which appears to be re-packaged TX 400, was not a healthy sign.

 

[capitalK]

Kodak has a pretty healthy film industry in movie stock, I don't know that I'd worry about film.

I'm not so much worried about the manufacture, more the distribution.

Sending large reels to a few select film houses is one thing, but the distribution of millions of small rolls to all corners of the globe is another. That's why it may be more economical for them to sell the film at a lower cost through Freestyle and let them worry about distribution.

 

[bmattock]

Kodak has a pretty healthy film industry in movie stock, I don't know that I'd worry about film.

It depends upon how one chooses to interpret the numbers.

The Associated Press spins it one way:

http://www.google.com/hostednews/ap/article/ALeqM5iNPdeosIa3ZveIJ0TNHIm_KIcqBAD960REBG0

Its consumer digital imaging division absorbed a $40 million operating loss in the quarter compared with a year-ago profit of $91 million as sales slid 30 percent to $958 million from $1.37 billion.
...
The film, photofinishing and entertainment unit more than doubled its operating profit to $39 million from $17 million despite a 27 percent drop in sales to $652 million. Sharp cost reductions and lower retiree benefits were partially offset by a slide in consumer film sales and higher silver costs.

But when you read the Kodak Press Release, it says something different (same info, just presented differently):

http://www.kodak.com/eknec/PageQuer...reLocale=true&pq-locale=en_US&_requestid=9578

Revenue from digital businesses totaled $1.779 billion, a 23% decline from $2.325 billion in the prior-year quarter. Revenue from the company’s traditional business decreased 27% to $652 million as a result of accelerated industry-related declines in Film Capture and Traditional Photofinishing.

If you look at profit, it appears film is making more of it that digital for Kodak. However, AP acknowledges that part of that 'profit' came from 'cost reductions' (layoffs) and retiree benefit cuts (there's a limit to how much you can cut there).

If you look at revenue, film screwed the pooch compared to digital.

Profit wins over revenue, but if it is artificially achieved by cost cuts that cannot be extended year-on-year, then it's a temporary reprieve.

I don't know what comes next for Kodak. I hope for the best, for both their film and digital product line.

 

[Pickett Wilson]

2009 will probably be a make or break year for Kodak. Maybe they will be looking for a bailout soon.

 

[bmattock]

2009 will probably be a make or break year for Kodak. Maybe they will be looking for a bailout soon.

1 billion or so in debt, 2 billion or so in cash or cash equivalents. Their burn rate is not so bad. I think they can make it through 2009, one way or another. But times are tough - for all of us, not just Kodak.

 

[yanidel]

1 billion or so in debt, 2 billion or so in cash or cash equivalents. Their burn rate is not so bad. I think they can make it through 2009, one way or another. But times are tough - for all of us, not just Kodak.

Correct, yet being in the red already means their overall business model is not good as 2008 was a good year for most companies.
If the economy does not pick up by the end of year, they could be in deep trouble quickly (like others).