The 54% year-on-year decline came in spite of a US$79 million improvement in the second quarter operating result, after the firm recorded more than US$200 million in interest and reorganisation costs in the three months to 30 June 2012.
Meanwhile, in a potential blow for the firm’s pension fund, which is owed US$2.8 billion by Kodak, the company has requested permission to defer its June 2012 payment “in order to finance certain restructuring charges in Europe”.
Kodak listed its expected 2012 contribution to its major US and non-US defined benefit pension plans as US$86 million.
Following the expiration of the 17 July deadline for potential creditors to file proof of claims, Kodak revealed that it had received approximately 5,900 claims with an aggregate value of at least US$20.5 billion.
This amount relates to the total value of “liquidated claims” Kodak has received, which are claims where the value is not in dispute; the potential aggregate value of “unliquidated” or disputed claims was not given.
Kodak said that, “in light of the substantial number of claims filed, the claims resolution process may take considerable time to complete”.
Net sales came in at US$1.1 billion and US$2 billion for the second quarter and first half respectively, down from US$1.5 billion and US$2.8 billion in 2011. That reflected Kodak’s “exit of digital cameras, reduced sales of traditional products, participation choices across its businesses and the negative impact of currency exchange”.
Kodak highlighted its second quarter operating result, which improved from a US$174 million loss to a US$95m loss year-on-year, following a US$73 million reduction in SG&A expenses and the US$19 million proceeds from the sale of its Kodak Gallery online photo business.
Kodak chief executive Antonio Perez said: “I am pleased with our progress, and our operating results are both improved from last year and also ahead of our plan. We are committed to sustaining the progress required to successfully emerge from Chapter 11.”
However, following interest and reorganisation costs of US$41 million and US$160 million respectively, the quarterly pre-tax loss came in at US$300 million, while the corresponding result for the half also worsened, going from a US$468 million loss in 2011 to a US$776 million loss in the first six months of this year.
Since the start of the year, Kodak eliminated approximately 2,050 positions worldwide, including 1,200 in the United States and Canada and 850 in the rest of the world, and has incurred restructuring costs of US$113 million.
Meanwhile, the firm also revealed its environmental liabilities, relating to future investigation, remediation and monitoring costs, to be US$93 million at the 30 June 2012.
The only update on Kodak’s ongoing digital imaging patents sale process was confirmation that the final date for designation of the approved bidder(s) was 13 August.
This article originally appeared at printweek.com
Comment below to have your say on this story.
If you have a news story or tip-off, get in touch at editorial@sprinter.com.au.
Sign up to the Sprinter newsletter