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Here’s one way of understanding Eastman Kodak’s (EK) problems: The company has twice...

Here’s one way of understanding Eastman Kodak’s (EK) problems: The company has twice as many retirees drawing benefits in the U.S. as it has active employees worldwide. The company said in its Chapter 11 filing that it is liable for $1.3B in U.S. retirement benefits such as health care, plus $1.2B in non-U.S. pensions. (also)
Comments (2)
  • Yes, Kodak has about 38,000 drawing pensions/healthcare and only 17,000 worldwide employees. Only 9,100 employees in the USA with 1,100 being part-time. Thus, there are 5,500 hourly employees and now only 3,600 Salaried employees. This is a company that once had over 140,000 employees. Kodak had 63,000 employees when Perez arrived in 2003 and you can see what's happened. NO WAY 17,000 employees can pay full pension/healthcare to 38,000 retirees. Sad but true. According to CEO Perez yesterday - "it is what it is".....
    Main reason for the Chapter 11 was to reduce this obligation. Kodak is a $4.5B company which could no longer support it's $6.75B in liabilities. It all "hangs" now on IP sells and lawsuit settlements. It's not about the Consumer or Commercial Businesses. Kodak has 18 months to repay Citigroup the $1B loan - or Citigroup takes over all assets. Should be a nice ride for us employees that haven't jump ship.
    20 Jan 2012, 11:07 AM Reply Like
  • If the lawsuits and IP sales don't materialize...JUMP.
    20 Jan 2012, 01:37 PM Reply Like
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