'New' Kodak comes out blazing

Kodak's ceo, Antonio Perez, has a bold new vision for the company and its future.

"It is with great pride that I introduce the new Kodak, a company with a new spirit and winning attitude," said Perez, (pictured) chairman and ceo, Eastman Kodak company.

Perez is referring to Kodak's plans of unveiling a new company designed to generate profit in materials science and digital image science. Over the next four years, Kodak intends to focus on leading its portfolio of digital businesses while also increasing revenue. In 2008, Kodak expects GAAP earnings from continuing operations of $250 million to $275 million and cash generation of $400 million to $500 million.

Kodak entered 2008 with a strong balance sheet and the financial flexibility to make the necessary investments to achieve greater scale in its growing digital businesses.

On average, the company expects to grow total revenue by a compound annual growth rate of 5 per cent per year from 2008 to 2011, with a compound annual growth rate of digital revenues of 10 per cent to 12 per cent per year during that period.

Kodak is targeting gross profit margins of 28 per cent to 30 per cent and earnings from operations of 8 per cent to 10 per cent of revenues by 2011. The company is also targeting cash generation before dividends to surpass $1.0 billion annually by the end of the planning period.

"Kodak is now a company with a broad portfolio of digital businesses with diverse sources of revenue, and earnings powered by an unmatched intellectual property position and a sustainable traditional business model," Perez said. "I am confident that we will continue to achieve success in digital markets and create value for our shareholders in 2008 and beyond."