Eastman Kodak Co.’s CEO Antonio Perez remains optimistic as small signs of recovery shine light on otherwise gloomy results for the company’s third quarter of 2009, announced on October 29th.
Kodak CEO Antonio Perez photographed at PRINT 09 in Chicago, Friday, September 11, 2009
Overall, Eastman Kodak’s Q3 consolidated revenues were $1.781 billion, a decline of 26 percent when compared with last year’s third quarter, leading to a loss of $81 million, compared with earnings of $147 million in the year-ago quarter.
Revenue for the Graphic Communications Group (it’s graphic arts division) was $674 million for Q3, an 18 percent decline from $821 million Q3/2008. And earnings for the GCG operations were $10 million for the quarter, a drop of $12 million from the third quarter of 2008.
The company noted "quarterly sequential improvements" in its graphic arts consumables business from the start of the year, specifically citing the rate of revenue decline for digital printing plates (its largest consumable product category) has been improving since Q1.
During the company’s earnings call with analysts, Perez indicated the lowest point in consumables demand was in the first quarter of the year with gradual increases accumulating, leading to the belief the printing industry is showing signs of recovery. "We believe that that is a real trend because it has been going on for a while now in this economy."
In addition, despite the forecast of another decline in year-over-year plate sales in the fourth quarter, the margins on the plate business are expected to improve—due mostly lower aluminum pricing. (Aluminum has been between US$0.80 and US$0.90 a pound all year, compared with the period from early-2006 to mid-2008 when prices hovered between US$1.10 and US$1.50/lb.)
Also, in the graphic arts business, the company indicated it has received growing customer interest in its colour Stream inkjet technology (now labeled Kodak Prosper) which is slated to become commercially available in early 2010.
