Kodak’s Operating Loss in Commercial Imaging Segments Narrows in 2012
Tuesday, March 12, 2013
Press release from the issuing company
ROCHESTER, N.Y. -- Eastman Kodak Company today filed its 2012 Form 10-K with the U.S. Securities and Exchange Commission, reporting an improvement in earnings for the two reporting segments comprising Commercial Imaging that it has indicated will be the strategic focus of the company in the future.
The operating loss for the Commercial Imaging segments (Digital Printing and Enterprise and Graphics, Entertainment and Commercial Films) improved by $278 million in 2012. On a GAAP basis, the consolidated 2012 loss from continuing operations before interest expense, other income (charges), net, reorganization items, net and income taxes increased by $33 million.
Selling, general and administrative costs fell by $226 million as Kodak continued its focus on cost reductions. With other profit improvement initiatives implemented for 2013, Kodak believes it is on a path to emerge from Chapter 11 reorganization in mid-2013.
Kodak reported a 2012 consolidated net loss of $1.38 billion. Excluding reorganization and restructuring costs totaling $1.07 billion, the loss for the year would have been $308 million.
Kodak’s revenue of $4.11 billion in 2012 was a decline of 20% from the previous year, reflecting strategic decisions to focus on profitable businesses and accounts, soft industry demand as a result of the broader economic downturn in some businesses and regions, lower sales of traditional products, and unfavorable foreign exchange impact.
“We progressed in 2012 by maintaining absolute focus on our customers,” said Antonio M. Perez, Chairman and Chief Executive Officer. “We earned our customers’ continuing loyalty, and look forward to moving ahead with even deeper business relationships built around the industry’s most comprehensive and innovative portfolio of solutions.
“We also optimized our use of the Chapter 11 process, which offers valuable restructuring advantages despite the many demands it also imposes.”
The company’s worldwide cash balance was $1.14 billion at the end of 2012.
“Our momentum continues as we work to file our Plan of Reorganization and then complete the final actions that will enable us to emerge from Chapter 11 in mid-2013,” said Perez. "Thanks to the talent and dedication of our employees, our 2012 performance was on track or ahead of our adjusted EBITDA and cash projections, and we have remained in compliance with the covenants of our debtor-in-possession facility, laying the foundation for emergence as a profitable, sustainable company.”
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