Kodak Reports Eighth Straight Loss, but Shares Rise 5%

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Kodak Third-Quarter Loss Narrows, Shares Rise [Reuters]

Summary: Kodak reported a loss for the eighth consecutive quarter, but the company's cost-cutting measures were responsible for the 5% rise in its shares. The $37 million loss between July and September of 2006 is an improvement upon last year when the Rochester-based company was down $914 million due to an ongoing restructuring plan. Kodak warns that its growth in digital revenue for the year will be under its 10 percent goal since it is focusing on products which will bring higher profits . "The key to our strategy this year will remain our focus on margin expansion," said CEO, Antonio Perez. Continuing its extensive overhaul, Kodak is planning to cut 27,000 jobs and to trim its manufacturing operations.
Related Links:On a New High and an Old Price: Most Investors Are 6 Years Closer to Death–And None the Richer • A Very Human Index: Few People Realize Just How Arbitrary the Dow Is • Eastman Kodak Q3 2006 Earnings Call Transcript
Potentially impacted stocks and ETFs: Eastman Kodak (EK) • Competitors Canon (CAJ), Sony (SNE)

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Comments

[carleast:]

I can't see anyway back for Kodak. After taking far too long to get into the digital camera market the cameras that they do produce cameras that look dull and by all accounts average pictures. This is not a good way to gain ground in a market that is already saturated. Secondly, the compact camera market will eventually begin to feel the squeeze from mobile phones. I would say sometime in the next few years we will begin to stop buying compacts and rely on our phones most of the time.

So where does that leave the camera makers? They must diversify. Either by signing deals to get their optics and technology into mobile phones or by trying to gain in the fast growing slr market. Unfortunately Kodak is failing on both fronts here. Given Kodak lack of experience (Nikon/Canon) or lack of funds (Sony) I doubt they'll ever be able to make much headway in the slr market. I can't see how you can get a profit out of concentrating solely on mobile phone camera technology.

As for the rest of their business. Well we all know their main business of camera films is dying faster than Britney Spears can sign divorce papers. As for the rest of their business. Well it all seems worthless. That leaves us with some talk of their photosharing sites. Well, they've missed the boat there. The world needed a dominant photo sharing site 2 or 3 years ago. I doubt anyone will be able to create one now as the market is saturated with so many other photosharing sites or sites that offer something similar.

Kodak are dead as far as I'm concerned.

2006 Nov 08 09:39 AM