Eastman Kodak is reporting first-quarter financial results, and they show a decline in both earnings and revenues.
The company saw a net loss of $111 million, compared to an $18 million loss a year ago. Kodak says the change is due in part to tax related charges for locations outside the U.S.
Revenues came in at $267 million, down from $291 million a year ago.
Kodak’s Executive Chairman, Jim Continenza, said, “Kodak started the quarter on a positive trajectory and the actions we took last year to strengthen our balance sheet are helping us manage through the slowdown. Kodak employees have risen to the challenge of the pandemic, continuing to serve our customers and redirecting resources to produce isopropyl alcohol for hand sanitizer and manufacture face masks using our ESTAR film base. Looking forward, we will continue with our plans to double down on digital print, launch exciting new products and realign our business to focus on customers.”
David Bullwinkle, Kodak’s CFO, said, “During the economic slowdown caused by the COVID-19 situation, we are managing our working capital tightly to ensure sustainability for our customers and employees. We continue to pursue cost-reduction efforts to preserve cash and position Kodak for a strong rebound when business conditions start to improve.”
At Brighton Securities, George Conboy said like a lot of companies, Kodak will be facing challenges this year due to the coronavirus pandemic.
"The pandemic has interrupted so many businesses and it appears Kodak is no different," Conboy said. "Because their printing businesses are media and advertising related in many cases, the decline in revenues in those fields is echoing in Kodak’s quarterly report."