The company says the earnings decline was primarily driven by higher aluminium costs, seasonality in equipment and workflow sales associated with drupe as well as increased investment in the company’s digital printing businesses.

Kodak says investments include costs to develop and commercialise its Stream technology, a continuous inkjet printing system, which is expected to provide offset class reliability, productivity, cost and quality with the full benefits of variable data digital printing.

The company continues the Stream technology was among 25 new products that it successfully introduced at drupa and which generated a significant order volume that the company is now beginning to fulfil.

Kodak also reported it second quarter digital revenue is up 10 per cent to $1.6bn, while film, photofinishing, and entertainment group revenue declined 14 per cent to $847m from $980m in the second quarter of 2007.

Antonio Perez, CEO of Kodak says, “The digital franchise that we have built performed well during the quarter. Customer acceptance of our digital plates, retail printing systems, and consumer and commercial inkjet products remains strong.”

Perez continues, “We have decided to increase our investment in a number of product lines. We are increasing the projected volumes for our consumer inkjet printers for 2009 and pulling forward by three to six months the delivery date of our new Stream inkjet technology for commercial printers.”

The company’s second-quarter earnings from continuing operations, before interest expense, other income, net, and income taxes improved by $18m to $207m, compared with $189m in the year-ago quarter.

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