Eastman Kodak Co. (EKDKQ.PK) Friday reported a wider loss for the first quarter, hurt mainly by reorganization costs associated with its bankruptcy filing as well as on lower sales. Nevertheless, the company said the results for its existing two segments improved.
Kodak in January filed for bankruptcy protection for business reorganization, as the 131-year-old company has been struggling to sell its non-core assets to stay afloat and transform itself into a digital company.
Rochester, New York-based Kodak's first-quarter net loss widened to $366 million from $246 million last year. The recent quarter results include reorganization charges of $88 million. Restructuring charges increased to $94 million from $33 million last year.
Revenues for the quarter dropped 27 percent to $965 million from $1.32 billion last year, hurt mainly by the company's decision to stop selling digital cameras and video cameras, while its traditional business continued to deteriorate.
Kodak in February announced plans to phase out its capture devices business, which includes digital cameras, pocket video cameras and digital picture frames. Pursuant to which Kodak's consumer business will focus on online and retail-based photo printing, and desktop inkjet printing.
Kodak also recorded a $61 million revenue decline related to a tax refund sharing agreement with intellectual property licensees.
Meanwhile, selling, general and administrative expenses declined 27 percent to $227 million, as the company exited the unprofitable capture device business, with focus now on two segments - Commercial and Consumer. Research and developmental costs also decreased to $66 million from $78 million last year.
Chief Executive Antonio Perez said, "During the quarter, we took decisive steps - including filing for Chapter 11 and exiting unprofitable businesses - to accelerate our transformation and emerge in 2013 as a profitable, sustainable business. As a result, during the quarter we saw improved profitability of our Commercial and Consumer business segments."
Losses from Consumer segment narrowed 12 percent to $164 million from $187 million last year, due mainly to lower costs. Meanwhile, losses at Commercial business was lower at $64 million, compared to $67 million last year. This was due mainly to lower sales and operating costs.
"Kodak is focusing on its opportunities, reducing costs, and fine-tuning the balance between liquidity and growth to enable the enterprise to emerge from its Chapter 11 restructuring in 2013 as a leaner, stronger, and sustainable business," Perez added.
Kodak's shares are currently trading at $0.29, up $0.01 or 3.57% on OTC.
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