Saturday 19 November 2011

Kodak loss twice as bad as analysts expected

Kodak loss twice as bad as analysts expected: Kodak loss twice as bad as analysts expected

Kodak, the iconic photography brand, is reporting a larger third quarter loss than was expected by many industry analysts.

It is reporting a loss of $222 million, or 83 cents a share, which is twice what many analysts had predicted ahead of the reports. This time last year, Kodak had lost $43 million, or 16 cents a share.

Earlier in the year, shares fell by 25% after the company took out a £103 million loan and was forced to deny rumours of bankruptcy after hiring Jones Day, a law firm often associated with bankruptcy protection cases.

Kodak also reports that it has $862million in cash at the end of this quarter, down from $957million in the second quarter, leaving some analysts to worry that Kodak will use up the cash before too long.

Printer sales

Chief executive of the firm, Antonio M. Perez attempted to downplay the results, pointing to an increase in sale of digital printers and ink, which have jumped 44%. Packaging products were also up by 89%.

Kodak has recently been concentrating its effort on digital printers, and has been selling off various photography patents from its long history in a bid to raise money.

Revenue at the company has fallen 17%, to $1.46billion from the same period last year, mostly down to a decline in camera, both film and digital, sales.

Kodak previously forecast an annual loss of $200-$400 million, but is now expecting to post a 2011 loss of between $400-$600 million.



Source : google Reader

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