Kodak reported a loss from continuing operations of US$360 million for the first quarter of 2009. The company’s worldwide sales of US$1.47 billion are down 29 percent from the first quarter of 2008.
Kodak’s Graphics Communications Group (GCG) posted a US$60 million loss for the quarter, compared to a loss of one million in Q1 the year prior, while GCG’s revenue fell 26 percent when compared with Q1 2008 (from US$812 million to US$603 million). These declines were attributed to continued industry weakness and buying slowdowns in prepress and associated workflow software, along with foreign exchange corrections.
Kodak’s chairman and CEO, Antonio Perez (pictured), holds to the belief the economy will stabilize in the second half of the year, and on the bright side, Perez highlighted packaging as a fast growing segment for Kodak and indicated that investment in Stream inkjet technology is also delivering results.
"We now have a total of five global beta sites for the Stream inkjet technology print head," said Perez. He went on to confirm that the company is on track to having full Stream presses in the marketplace by early next year. (the Stream concept press, pictured below, was demonstrated at drupa 2008)
In efforts to scale back costs, Kodak announced temporary pay cuts of 10 percent for senior executives (Perez will reduce his salary by 15%), and U.S. employees will take one week unpaid leave. The company also eliminated approximately 1,600 positions during the first quarter.
"We are making significant progress in adjusting our cost structure and I have confidence that we will enter 2010 as a leaner and a stronger company, ready to grow when the market recovers," said Perez.
