Kodak Australia ‘profitable’ but worldwide losses increase

Kodak’s net loss rose 41% to US$312 million ($300 million) in the third quarter and 51% to US$977 million for the nine months to 30 September, as net sales fell 19% over the same periods, to US$1 billion and US$3 billion respectively.

Pre-tax losses from continuing operations rose 32% to US$284 million in Q3 and 56% to US$987 million in the first nine months, while gross profit fell US$20 million to US$160 million in Q3 and $79 million to US$404 million in the nine months to 30 September.

Australian managing director Adrian Fleming told ProPrint: “Revenues for Kodak locally have remained relatively stable in both commercial and personal imaging, and the local organisation remains profitable despite some very challenging market conditions in both commercial print and retail.”

The troubled US manufacturer, which recently filed a motion to delay filing its reorganisation plan with the US Bankruptcy Court until 28 February 2013, highlighted the fact its latest results include the impact of significant reorganisation and restructuring costs.

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These totalled US$173 million in Q3, compared with US$17 million in Q3 2011, and US$510 million over the past nine months, compared with US$77 million for the same period in the prior year.

Excluding these costs, Kodak’s net loss improved 37% to US$173 million in Q3 and 18% to US$467 million in the nine months to 30 September.

Net sales fell across the board at Kodak’s three divisions: Graphics, Entertainment and Commercial Films (GECF); Digital Printing and Enterprise (DPE); and Personalised and Document Imaging (PDI).

Of the three divisions, Personalised and Document Imaging was the only one to register a profit before interest, other charges, reorganisation items and income taxes in the third quarter.

Meanwhile, Kodak’s US operations have continued to burn through cash, with US$314 million available in cash and cash equivalents at 30 September, down from US$346 million at the end of August and US$438 million at the end of July.

This article originally appeared at printweek.com

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