Kodak Paper cost $$$$

[Skinny McGee]

I don't know if this post will work..


ROCHESTER, N.Y. - Eastman Kodak Co. is raising prices for photographic paper this summer to offset a steady rise in the cost of raw materials, including pulp, silver and petrochemicals.

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Kodak, which is in the midst of a mammoth digital overhaul, said Monday that the price hikes will take effect in July, varying from around 4 percent to 10 percent across a wide range of silver halide-based paper made for both consumer and professional markets.

"Over the past several years, Kodak has been absorbing unrelenting increases in the costs of raw materials," the company said in a statement.

"Other costs tied to the escalating price of energy, including transportation and packaging, also have increased," it said. "These pressures have reached the point where they can no longer be offset by Kodak's ongoing productivity programs."

The company has racked up $2.2 billion in restructuring costs since January 2004. It reported a $298 million loss in the first quarter — its sixth straight quarterly loss.

Kodak shares fell 41 cents, or 1.7 percent, to close at $23.45 on the New York Stock Exchange.

 

[Solinar]

Kodak isn't the only company that will be raising prices this year. - Inflation is rearing its ugly head in other areas as well.

 

[ch1]

Kodak isn't the only company that will be raising prices this year. - Inflation is rearing its ugly head in other areas as well.

Bingo!

About 25 years ago they "changed" the measure of inflation and removed "food and energy costs" from the basic index. The rationale was that these are volitile (rise and fall a lot) and thus "distort" the measure of what is considered the "core inflation rate".

That is why you often hear news reports that say that while "overall inflation" was up 0.6% this month, the "core rate" was only up 0.2%.

This is supposed to make us all feel better. And so we should, so long as we do not eat, drive a car, heat or cool our houses etc.

So what is happening is that reality is filtering through this political/economic hocus-pocus. The rise in commodity prices, espescially oil and semi-precisous metals (i.e. silver), is now filtering though to finished goods.

But look on the bright side. By giving up eating and driving your car and you can pay for the higher film and developing expenses without diminishing your overall buying power!

 

[Trius]

As Mark Twain said, "There are three kinds of lies: Lies, damned lies and statistics."

 

[danwilly]

It has very little to do with inflation and more to do with the fact that Kodak is losing its shirt (and pants) because of digital photography. The day is fast approaching when they will decide to discontinue all film- and darkroom-related products and focus on processing digital. I highly recommend Adorama's photo paper. It is a third less in cost and delivers the same quality as Ilford's line.

 

[Fedzilla_Bob]

Remember all of the major 3 "photographic" corporations are raising prices on their goods. Fuji and Ilford are doing it as well.

I'm betting it's a matter time before all do.

 

[ch1]

Remember all of the major 3 "photographic" corporations are raising prices on their goods. Fuji and Ilford are doing it as well.

I'm betting it's a matter time before all do.

Absolutely. Every one of the companies uses the same raw materials. As the "big boys" K and F are simply paving the way for smaller manufacturers.

It is a mature industry, primarily a duoploy wherein the two majors are intent on ensuring the survival of smaller "competitors" to stave off anti-trust lawsuits.

It's why Microsoft needs Mozilla and Intel needs AMD!

 

[rpsawin]

Just to clarify this post "K" stopped making B&W papers last years. So how much of an impact is this to you? Are you doing color processing?

Bob