Kodak’s first post-emergence figures are in, with imaging giant delivering general improvements across its portfolios, with profits creeping back into the balance sheets and a massive cut in debt.
- Antonio Perez, CEO, Kodak
The graphics giant reported a net income of $1.99 billion for the third quarter, despite dips in sales and some hard knocks from ‘fresh start’ accounting following its worldwide emergence from bankruptcy on September 1. After these details are factored in and various reorganisation items and discontinued operations are excluded, the company concedes an overall net loss of $155 million for the period.
The third quarter totals combine two sets of figures, respectively from its ‘predecessor’ period, from July 1 to August 31, and its current ‘successor’ period, from the emergence event. The $1.99 billion income figure actually comprises a $2.01 billion income for the predecessor company and a loss of $18 million since emergence. Backing up its aggressive focus on profitability, Kodak reports an 8% improvement in year-over-year gross profit for the quarter.
Antonio Perez, Kodak CEO, said, “We are pleased with our progress on earnings this quarter, with operational EBITDA on track with expectations. Further, our customers are telling us they are impressed with our technologies, and increasingly ready to adopt and apply our solutions to help grow their businesses. Our strengths in imaging for business markets, including packaging, functional printing, graphic communications and professional services, position us well to move forward on our strategy with increasing momentum.”
The results note a broad decline in sales and turnover in both its graphics and film, and digital printing segments, but a boost in its print profits, which it attributes to a favourable price/mix within consumer inkjet and higher component placements in digital.
By comparison the Q3 2013 income figure of $1.99 billion is a huge leap from its reported loss of $312 million in the corresponding period for 2012. Excluding the fresh-start accounting adjustments the company’s earning before interest, taxes, depreciation and amortisation clock in at a respectable $30 million, well up on 2012’s loss of $23 million.
According to the Q3 results, Kodak’s debt facility has dropped from $1.446 billion, as of December 2012, to $679 million. Inventory revaluation owing to 'fresh start' accounting chipped away $12 million from the graphics segment's performance, leaving gross profits at $44 million, and cutting $14 million from digital printing, which delivered $47 million gross profit.