Kodak digital evolution is still causing pain

In spite of the loss, digital was again the top earner for Kodak with revenue increasing six per cent to reach $2.4 billion. Steve Green, managing director for Kodak GCG in Australia and New Zealand, says this indicates Kodak is well on its way to completing its conversion into a digital enterprise.

“Nobody in the Australian printing industry is doing summersaults at the moment and things are fairly hard across all sectors,” says Green. “But we are not disappointed with the second quarter results. Kodak GCG has just celebrated its first birthday and while we have got a long way to go, we are pleased with the progress so far,” he says.

Green’s positive outlook for GCG was reflected in its global sales during the second quarter that were up 14 per cent to reach $1.2 billion, a result attributed to the acquisitions of KPG and Creo. Antonio M. Perez, chairman and CEO of Eastman Kodak, says the second-quarter results indicate continued progress in the implementation of the company’s digital business strategy.

“We are coming into the final stages of our digital transformation. By the end of next year the majority of the restructuring costs will be behind us and Kodak will be positioned for sustained success in digital markets.”

Film continued to fall off the cliff during the second quarter with the company’s Film and Photofinishing Systems singled out as the primary reason behind the nine per cent decrease in total sales to $4.86 billion. Traditional revenue suffered a tumble of 22 per cent to $2 billion.

Kodak continues to shed jobs across the group’s different divisions with 1,630 positions eliminated during the second quarter. The company estimates the total number of job losses associated with its digital evolution will now be between 25,000 and 27,000 positions, costing Kodak as much as $4.5 billion.