Kodak back in profit

Kodak’s latest Q3 figures show net earnings of $19m, marking a welcome return to profit for the company since its chapter 11 bankruptcy. Operational EBITDA increased to $89 million in the third quarter from $42 million in the previous-year quarter.

“Our first profitable quarter since our emergence is a milestone,” said Jeff Clarke, Chief Executive Officer. “Strategic technology product areas, especially in our graphics business, are showing momentum, and we continue to invest significantly in our technology and to build our installed base.

Sales in the quarter were $564 million, up $1 million from the previous-year quarter, despite declines totaling $43 million in the Consumer Inkjet and Entertainment Imaging films mature businesses.

But the Graphics, Entertainment & Commercial Films (GECF) division saw revenue of $400m, 13 percent up from $353m in the previous year, and gross profit of $102m, a significant improvement on the $44m from the same quarter of 2013. CtP devices and plates, as well as the Flexcel NX system are still growing. Kodak claims that the number of pages printed via its Prosper inkjet systems have doubled, though digital printing declined from $6 million in the 2013 third quarter to zero in the 2014 quarter, which Kodak blames on a drop in consumer inkjet ink sales.

Chief Financial Officer John McMullen said, “Kodak is on track to meet guidance for 2014 revenue of $2.1 to $2.3 billion and Operational EBITDA of $145 to $165 million. Liquidity remains strong, with a cash balance of $744 million.”

However, Clarke pointed out that Kodak is still operating close to its breakeven point, adding: “While our costs are down, we will continue to re-engineer processes, streamline our organization, and improve execution and accountability to accelerate and broaden our momentum.”

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