Kodak Sees Profits Decline In The 3rd Quarter
Kodak saw a loss in its most recent quarter. But officials feel they are making solid progress on their plans to transform the company.
It's been just over two years since Kodak emerged from Chapter 11 bankruptcy, and became a smaller company focusing now on commercial printing and packaging.
The company is not profitable yet. In the third quarter, Kodak reported a net loss of $21 million, compared with a profit of $19 million in the same quarter last year, but officials say that was partly due to the fact that last year saw one-time revenues from selling patent licenses.
Overall, revenues of $446 million for the most recent quarter were down 21 percent compared to a year ago, which the company attributes partly to currency fluctuations and a decline in revenues from its older line of inkjet printer cartridges.
George Conboy, Chairman of Brighton Securities, says Kodak is working hard to turn itself around, but it's still struggling.
"Even accounting for some one-time events, sales were down about 13 percent for Kodak and it's tough to make money when your sales keep going down that much. "
Kodak CEO Jeff Clarke says the third quarter saw signficant progress in Kodak's transformation, and he says they did see strong growth in some product lines. The company says it's on track to achieve revenue and earnings goals for this year.
Kodak also expects to cut costs by more than $100 million for 2015 overall.
Worldwide employment at the end of the 3rd quarter was just over 7,400 down 12 percent from a year ago.