Kodak Digital Imaging Posts Lower Q4 Sales

TWICE Staff -- TWICE, 1/26/2011

Rochester, N.Y. - Eastman Kodak's consumer digital imaging group reported lower sales and a loss for its fiscal fourth quarter, ended Dec. 31.

For the fourth quarter, sales for the segment were $731 million, a decrease from $1.2 billion in the prior-year quarter.

Fourth-quarter loss from operations was $57 million, compared with earnings on the same basis of $380 million in the prior-year quarter. The results were primarily driven by a nonrecurring intellectual property licensing transaction in the prior-year quarter.

However, for the year, the group reported higher sales and operating profits. The group's full-year 2010 sales were $2.739 billion, a 5 percent increase from the prior year.

Full-year earnings from operations for the segment were $330 million, a $295 million increase from the prior year.

The year-over-year improvement was driven by intellectual property licensing transactions and improving profitability in consumer inkjet, which doubled gross profit dollars from ink during 2010. This was partially offset by declines in retail systems solutions.

Company-wide sales for the full year were $7.19 billion, down 6 percent from the prior year. Kodak reported a full year loss of $58 million, compared with a loss of $232 million for the prior year.

The company's digital businesses delivered $301 million in earnings from operations in the year, a $308 million improvement from 2009.