Rochester, N.Y. -
reported Thursday a first-quarter loss on a 31 percent revenue drop as declining film sales out stripped increases in its digital businesses.
In addition to slowing sales, the company said a 14 percent decline from the film business in the period was impacted by rising materials costs, especially the skyrocketing price of silver, which is a key component in film manufacturing.
In total, the company showed a first-quarter loss of $249 million, compared with a $119 profit a year ago.
Kodak said the Consumer Digital Imaging Group saw first-quarter sales of $330 million, compared with $884 million in the period a year ago.
The company's consumer inkjet printer business rose by more than 50 percent in the period.
A first-quarter loss from operations for the segment was $168 million, compared to earnings of $401 million in the prior-year quarter. This decline in revenue and earnings was primarily due to the $550 million non-recurring intellectual property transaction in the first quarter of 2010, the company said.
Revenue dropped 31 percent to $1.3 billion. Excluding the intellectual property transaction, revenue fell 3 percent as the digital business showed a 2 percent revenue increase from the same period last year, Kodak said.
Kodak Chief Executive Antonio Perez said with the digital increases and other positive factors he continues to expect a return to sustainable profitability by 2012.