Third-quarter earnings from operations for the segment totalled $10m, compared with earnings of $22m in the year-ago quarter. This earnings decline was primarily driven by lower volume, which resulted in unfavourable factory absorption and negative price/mix across several product lines, along with a negative impact from foreign exchange, partially offset by cost reduction efforts across all product lines and operational improvements, according to Kodak.

Company-wide sales totalled $1.781bn, a decrease of 26 per cent from $2.405bn in the third quarter of 2008, including two per cent of unfavourable foreign exchange impact.

For the full year, Kodak now expects its total revenue decline rate to be at the high end of the previously forecasted range of 12-18 per cent, due in part to results to date and to the company’s increased focus on cash and earnings.

Antonio Perez, CEO of Kodak says, “Our sales are stabilizing and some businesses are showing real signs of growth in the fourth quarter. That, combined with operational improvements in several of our key product lines, increases our optimism for significant improvement in the fourth quarter.”

He continues, “We also continue to gain significant traction with our new consumer and commercial inkjet businesses, and the productivity improvements that we’ve implemented thus far are helping to drive improved cash performance. While consumer demand and commercial credit markets remain constrained for the time being, we are well positioned to deliver sustained profitability as the economy improves.”

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