Kodak slashing debt and boosting earnings but still running at a loss

Kodak has said its improved earnings and debt position reflect its "momentum upon emergence from Chapter 11".

The company posted a US$2 billion ($2.1 billion) profit for the third quarter of the 2013 calendar year, compared to a US$312 million loss at the same period in 2012.

However, the US$2 billion profit became a US$155 million loss once "reorganisation items and discontinued operations" were excluded.

Revenue also fell 14.7% to US$563 million for Kodak, which continues to restructure following its emergence from Chapter 11 bankruptcy.

Operational earnings before interest, taxes, depreciation and amortisation (EBITDA) improved from a $23 million loss in 2012 to a $3 million profit.

[Related: Kodak Australasia bullish about future]

The company's debt position improved from US$1.4 billion at 31 December 2012 to US$679 million at 30 September 2013.

Chief executive Antonio Perez said: "We are pleased with our progress on earnings this quarter, with operational EBITDA on track with expectations.

"Further, our customers are telling us they are impressed with our technologies, and increasingly ready to adopt and apply our solutions to help grow their businesses."

Perez added: "Our strengths in imaging for business markets, including packaging, functional printing, graphic communications and professional services, position us well to move forward on our strategy with increasing momentum."

Kodak reported that "a large number of customers continued to convert to Kodak Sonora process-free plates" and that "customers around the world continued to invest in Kodak Prosper solutions, including the UK’s largest order to date for Prosper S30 imprinting systems".

[Related: More finance news]

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