Eastman Kodak is out with its 2nd quarter earnings report, and the company is reporting an increase in profits and a drop in sales.
Net earnings of $201 million were a lot higher than the profits of $4 million a year ago. But that is due mostly to the gain realized from the sale of the company’s Flexographic Packaging Division.
At Brighton Securities, George Conboy notes that without the sale off that division, Kodak would have seen a $ 6 million loss.
“Now, that’s not a huge number for a company even the size of the new, small Kodak, but the ink is still red and it doesn’t look like they’ll turn it black really soon,” Conboy said. He also says that Kodak has about two years of cash left at the rate they are currently going through cash, but he says if they can slow the rate of loss or turn a profit, the company can extend its future.
Revenues for the 2nd quarter were $307 million down $25 million from a year ago.
The company says it saw strong year-over-year growth in key product lines in the quarter, including volume for its KODAK SONORA Process Free Plates which grew by 25%.
“Refinancing the remaining balance of our term debt was a critical step toward creating the foundation for future success,” said Jim Continenza, Kodak’s Executive Chairman. “Our priority is generating cash by better serving customers in our core print, film and advanced materials businesses and driving further cost efficiencies.”
Kodak also recently announced it has reached an agreement with Lucky HuaGuang Graphics Company to establish a strategic relationship in China. The company says that by partnering with that company it seeks to significantly increase the adoption of its SONORA plates in China.