Kodak records revenue drop, but Stream press on track for launch in early 2010

The company as a whole recorded a US$360 million (A$487m) loss from continuing operations. Sales for the quarter totalled US$1.477 billion (A$1.998bn) – a 29% drop from a year ago.

However, the GCG division reported sales of US$603m (A$816m), down 26% from the same quarter last year. The figure included a 6% impact from unfavourable foreign exchange.

Kodak cited the “market-related decline” of 30% within the company’s pre-press solutions and associated workflow as a key driver behind the drop in sales.

Despite this, the company maintained its commitment to its Stream continuous inkjet technology and said it was set to bring the press to market by early 2010, adding that the beta operation was running ahead of plan.

Elsewhere, the Consumer Digital Imaging Group recorded sales of US$369m (A$500m), a 33% decline, while the Film, Photofinishing and Entertainment Group reported a 31% fall with sales of US$503m (A$681m).

Antonio Perez, chairman and chief executive of Kodak, said: “Despite the ongoing impact of the global recession, Kodak continues to bring to market innovative products that customers are embracing, and we are gaining or maintaining market share.”

The company has set its sights for the coming year on maintaining an overall revenue decline of between 12% of 18% and a GAAP loss from continuing operations of US$200m to US$400m.

Perez is to reduce his salary by 15%, while members of Kodak’s board of directors are set to cut their direct cash compensation by 10% for 2009. In addition, all other US-based Kodak staff are to take one week unpaid leave before the year is out.

Read the original article at www.printweek.com.

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