Kodak losses continue to mount in latest monthly report

According to the troubled Rochester-based manufacturer’s latest monthly operating report, which does not include the company’s international businesses that were not part of the Chapter 11 bankruptcy filing, it made an operating loss of US$52.3 million and a pre-tax loss of US$78.5 million for the month of July.

It’s gross result – a US$3.2 million loss – was a reversal on the previous month’s US$19.2 million gross profit, the first Kodak had recorded since entering Chapter 11 at the start of the year.

Excluding March and June, when the net result was skewed by exceptionally high restructuring and reorganisation costs respectively, Kodak’s monthly net loss has been on an improving trend, going from a US$100 million loss in January, to a US$97 million loss in February, a US$91 million loss in April, an US$88 million loss in May and a US$78 million loss in July.

Research and development (R&D) spend has declined 22% in that time, from the highs of US$18 million in January and March to US$14 million in each of the last three months. Selling, general and administrative expenses (SG&A) had fallen from US$41 million in January to US$34 million in April.

Kodak then recorded a spike in SG&A in the Drupa month of May, back up to US$40 million, although this dropped back to US$30 million in June before rising again last month to US$39 million.

Revenues fluctuated throughout the first half of the year, with the best three months trading falling in February (US$168 million), May (US$173 million) and June (US$180 million) and the worst in January (US$143 million), March (US$108 million) and April (US$156 million).

Despite the improvements in Kodak’s net result since the start of the year, the company remains a long way off profitability and is burning through cash at an increasing rate – the group’s US operations finished July with US$438 million cash in hand, down US$72 million on June’s US$510 million.

This continued a trend, with Kodak burning through US$22 million in March, US$43 million in both April and May, and US$64 million in June. In that time, cash reserves have fallen from US$682 million on 29 February to US$438 million on 31 July.

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This article originally appeared at printweek.com

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