Kodak selling itself off?

[Pickett Wilson]

Kodak part of a story on failing companies from Yahoo Financials:

"Eastman Kodak's (NYSE: EK - News) run as a public company may be over soon. That would put the jobs of many of its 18,000 employees in jeopardy. Analysts think Kodak's patents may be worth much more than that the company. Kodak has begun the process to find a buyer for these patents. MDB Capital Group told Bloomberg that the digital-imaging patents owned by Kodak may be valued at $3 billion in a sale. A sale of patents could mean Kodak will not keep all of its divisions. Second quarter sales at the company were down 5% in the past quarter to $1.5 billion. Kodak lost $179 million in the same time period. Its Film, Photofinishing and Entertainment Group sales dropped 14% to $369 million for the quarter. This is the area of the company's business where it would be logical to start the next phase in a long line of lay-offs. Kodak's cash position has become desperate. It has $957 million on hand compared to $1.624 billion at the end of the second quarter a year ago."

 

[Keith]

"Momma don't take my Kodachrome away!"

Whoops, that's right ... they already did. 😀

Ho hum ... and so the lumbering giant struggles on! When the movie industry no longer wants it product then the real sh!t will hit the fan for it's film manufacturing business.

 

[Pickett Wilson]

EK's double digit percentage drops in income with their film division quarter over quarter continues unabated. It's no longer profitable. Doesn't bode well for its future.

 

[FalseDigital]

"Momma don't take my Kodachrome away!"

Whoops, that's right ... they already did. 😀

Ho hum ... and so the lumbering giant struggles on! When the movie industry no longer wants it product then the real sh!t will hit the fan for it's film manufacturing business.

Speaking of which, I noticed in the end credits of the last 5 movies I watched that they were all filmed using fujifilm technology.

 

[Keith]

When you consider the state of the US economy it's not surprising that their backs are now well and truly to the wall.

It's a shame though because you can't really separate the words 'Kodak' and 'photgraphy' in most people's minds ... unless they've been hiding under a rock for the last hundred years! 😀

 

[NLewis]

Actually, the film division is the only division that was profitable in the second quarter this year. They lost a little money for the half, but it was the most profitable for the first half.

http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MTAxMDAwfENoaWxkSUQ9LTF8VHlwZT0z&t=1

Their big losses were in Digital Imaging (mostly cameras) and Graphic Communications (mostly printers).

 

[Pickett Wilson]

The current obsession with 3D is forcing the movie industry, and theaters, to move more rapidly to digital than many thought would happen, given the initial cost.

 

[btgc]

The current obsession with 3D is forcing the movie industry, and theaters, to move more rapidly to digital than many thought would happen, given the initial cost.

I think 3D fad is over, isn't it?

 

[Keith]

I need the 3D movie experience like I need a hole in the head ... give me a good old Hollywood black and white classic any day! 😛

 

[FalseDigital]

^ I just can't afford to be their customer anymore. Porta 400 is like $8 a roll. I love it but compared to Fuji's lower price and the fact that I shoot a lot I just can't spend that.

 

[delft]

desparate?

desparate?

Kodak part of a story on failing companies from Yahoo Financials:

"[...]Kodak's cash position has become desperate. It has $957 million on hand [...]"

If only my cash-position was that desparate!

Dirk

 

[mani]

I'm fascinated by this phenomenon: people who simply long for bad things to happen to other people. I always wonder what happened to them during their childhood.

 

[Pickett Wilson]

mani, nobody is longing for bad things to happen to EK. Their problems are very real, long term, and many would say self-inflicted.

 

[Sparrow]

I'm fascinated by this phenomenon: people who simply long for bad things to happen to other people. I always wonder what happened to them during their childhood.

All business analysts, and none-exec directors for that matter, are locked in a dark cupboard during their formative years

the key words, and also an oxymoron coincidentally, are "Analysts think"

 

[Keith]

I don't think anyone realistically wants anything bad to happen to Kodak ... I use their product and so do a large percentage of RFFers. They've failed to move efectively with the times, have produced some god awful digital products and are now heading towards oblivion if they can't get their act together.

I feel very sorry for the 18,000 employees who want no more than a guaranteed income to feed their families and pay their mortgages. I hope they hold it all together personally.

 

[tunalegs]

If the patents really were worth anything you'd think they'd hang on to them and make some money, no?

Unless this is another case of short term profit greed for investors...

You know what they say, a dollar today may be worth more than the company tomorrow.

 

[btgc]

I'm trying to understand - Kodak worked to build homes, now they have some apertment properties and don't want to build homes anymore. They want to rent apartments and live from that?

 

[MikeAUS]

Where will the world be without KODAK ... not better ?

 

[Gabriel M.A.]

I think 3D fad is over, isn't it?

Yes, it is. And "digital" movie-making isn't new, no more than semi-monthly poorly-written horror movie (ok, that is a redundancy, I know) releases are.


So...back on topic...I see Kodak keeps on getting chatted up to get their stock bought, eh? I'm not biting.

 

[Gabriel M.A.]

I'm trying to understand - Kodak worked to build homes, now they have some apertment properties and don't want to build homes anymore. They want to rent apartments and live from that?

A bit of the retirement mentality. It may work for people, but for a corporation...unless you're Microsoft, which propped itself up with Vaporware. Not even in that they were innovative, but have worked the virtual asset universe very well. Definitely not Kodak's forté.