Kodak Delays Debt Sale, Reiterates 2Q Guidance Despite Customer Bankruptcy
Press release from the issuing company
ROCHESTER, N.Y.-June 20, 2001--Eastman Kodak Company said it is delaying today's planned debt sale as a result of the anticipated bankruptcy filing by a customer, which will result in Kodak taking a non-recurring charge in the second quarter of about $75 million, relating to notes and trade receivables to this customer.
The anticipated bankruptcy filing does not change Kodak's earnings and financial guidance:
* To earn $1.00 to $1.30 a share in the second quarter excluding the previously announced restructuring charge and the charge discussed above.
* To generate at least $6 billion in free cash flow between 2001 and 2005.
"This action is being taken in the interest of full disclosure and to give our underwriters and bond investors the benefit of the most recent information we have at hand,'' said William G. Love, Kodak's Treasurer. "Given the timing of this development, we have decided to delay the sale. However, this issue does not represent a material impact on our cash flow, operating performance or financial condition, nor do I believe it impacts the attractiveness of our debt offering.''
WhatTheyThink is the global printing industry's leading independent media organization with both print and digital offerings, including WhatTheyThink.com, PrintingNews.com and WhatTheyThink magazine versioned with a Printing News and Wide-Format & Signage edition. Our mission is to provide cogent news and analysis about trends, technologies, operations, and events in all the markets that comprise today’s printing and sign industries including commercial, in-plant, mailing, finishing, sign, display, textile, industrial, finishing, labels, packaging, marketing technology, software and workflow.