Kodak finally turns a profit
DIGITAL OPERATIONS MAKE THE DIFFERENCE. After eight straight quarterly losses in a row, Eastman Kodak Company recently announce a modest profit ($16 million) for the fourth quarter of 2006. For the first time, Kodak generated more earnings from digital photography and commercial printing than from its film business.
(Kodak’s “commercial printing” is a mix of digital and conventional offset printing supported by Kodak workflow software, computer to plate and digital printing solutions. It also includes Kodak thermal printing plate makers and Kodak’s Matchprint Inkjet Proofing System.)
Despite shrinking film sales in recent years, Kodak has benefited from the demise of former competing film operations at Japan’s Konica Minolta and Belgium’s Agfa-Gevaert NV.
Even though Kodak made more money from traditional businesses (like film) last year, the profits from their digital businesses rose to 92 percent in the fourth quarter, for a total of $271 million. Older businesses profits only came to $98 million.
Kodak’s Chief Executive, Antonio Perez, who helped develop Hewlett-Packard’s very profitable inkjet-printer business (before being hired by Kodak in 2003), is excited about Kodak’s future. Kodak is gearing up next week for a long-awaited entry into the home inkjet-printer market that has been dominated by Hewlett-Packard Co.
Analysts estimate that Kodak has invested more than $400 million into its inkjet projects, yet they feel this is an area that offers a greater profit opportunity.
Posted by Royce Bair on 02/02 at 12:06 PM
Next entry: Kodak plans to break the ink cartel with cheaper ink