Rochester, N.Y. — Eastman Kodak reported a 29 percent decline in sales and a net loss three times higher than last year’s first quarter, as well as issuing more cost-cutting measures.
Sales for the quarter were $1.47 billion, down 29 percent from the first quarter of last year, including about 6 percent of unfavorable foreign exchange impact. The first-quarter net loss was $360 million, compared with the year-earlier loss of $114 million.
As a result, as well as cutting 3,500 to 4.500 jobs worldwide which was previously announced, chairman/CEO Antonio M. Perez and Kodak’s board will cut their compensation 15 percent and 10 percent, respectively. Other members of the senior leadership team will cut their base salaries by 10 percent for the balance of the year. All other U.S.-based Kodak employees will take one week of unpaid leave between now and the final pay period of the year.
Kodak is looking at other “alternatives to conserve cash in other countries and regions beyond the U.S.,” it said in a statement.
The consumer digital imaging group had first-quarter sales of $369 million, a 33 percent decline from the prior-year quarter, with a loss of $157 million, up from last year’s $111 million loss.
The graphic communications group had sales of $603 million, a 26 percent decline from the prior-year’s quarter, and a loss of $60 million compared with last year’s $1 million loss.
In the film, photofinishing and entertainment group, sales were down 31 percent from the prior year’s quarter to $503 million. Operating earnings were $8 million, down from the prior year’s $26 million.
“Despite the ongoing impact of the global recession, Kodak continues to bring to market innovative products that customers are embracing, and we are gaining or maintaining market share,” said Perez. “In the first quarter, our consumer inkjet printer hardware and ink revenue grew by more than 100 percent in a market that declined with the overall economy. We also just announced the fifth beta site for our innovative Stream inkjet technology printhead, which is ahead of plan and which gives us increased confidence that we will have a full Stream press available by early 2010. Our cash usage during the quarter was consistent with our seasonal trend. We have the financial resources to fully execute our business strategy, and we are maintaining our full-year goals.”