Kodak's Q2 Revenue Declines 27%
Eastman Kodak Company today reported that it continued to make progress in focusing on its most profitable businesses and strengthening operating performance and cost controls, as it develops a plan of reorganization that will enable it to emerge in 2013 as a profitable, sustainable company.
Second quarter segment earnings improved for its Commercial and Consumer segments by a combined total of $82 million, compared to the same quarter in the prior year as operating expenses were reduced ahead of revenue declines. The gross profit margin increased by two percentage points due to an enhanced mix of higher-margin consumables. Second quarter loss from continuing operations before interest expense, other income (charges), net, reorganization items, net and income taxes improved by $79 million compared to the prior-year quarter. The cash balance at the end of the quarter stood at $1.257 billion.
"I am pleased with our progress, and our operating results are both improved from last year and also ahead of our plan," said Antonio M. Perez, Chairman and Chief Executive Officer. "We are committed to sustaining the progress required to successfully emerge from Chapter 11."
Kodak's revenue of $1.077 billion in the second quarter represented a decline of 27% from the year-ago quarter, reflecting the exit of digital cameras, reduced sales of traditional products, participation choices across its businesses, and the negative impact of currency exchange.
On the basis of GAAP, the company reported a net loss of $299 million, compared to $179 million in the second quarter of 2011. Before reorganization items, the second quarter net loss was $139 million, an improvement of $40 million over the prior-year quarter. Second quarter reorganization items totaled $160 million, primarily reflecting second quarter non-cash provisions for allowed reorganization claims.
"The improvement in the operating performance of our businesses reflects the dedication of our people to serving customers and in turn, the positive response we are seeing from our customers," Perez said. "Across our businesses, we continue to offer unique technologies and strong value propositions. We will continue improving our operating performance while balancing liquidity and growth. We are on the right path to complete our successful reorganization."
A full disclosure of Kodak's quarterly performance is contained in a 10-Q report filed today with the U.S. Securities and Exchange Commission.