Kodak Posts 4th-Quarter Profit, Revenues Increase 6%, Ink-Jet Hardware And Cartridge Revenue Increases 81%
January 29, 2010 - Eastman Kodak Company is reporting its first profit in five quarters, with fourth-quarter 2009 sales of $2.582 billion, an increase of 45% compared to 2009's third quarter, and a 6% increase compared to 2008's fourth quarter. For its consumer ink-jet printer/All-in-Ones, which the company began marketing in 2007, Kodak reported an 81% increase in hardware and cartridge revenue versus 2008's fourth quarter.
Altogether, the company reported fourth-quarter 2009 earnings of $430 million, or $1.36 per share.
Kodak's ESP 7250 color ink-jet All-in-One, which it introduced in early January 2010.
Kodak says its fourth-quarter results reflect increased sales of both its consumer and commercial ink-jet imaging devices, as well as sales of digital plates, revenue derived from intellectual-property licensing royalties, and a leaner cost structure.
Revenue from digital businesses totaled $1.991 billion, a 12% increase from the $1.779 billion reported for fourth-quarter 2008, while revenue from the company’s traditional business decreased 10% to $589 million for fourth-quarter 2009--Kodak however says that this revenue decline rate was significantly lower compared to the first three quarters of 2009, reflecting improved demand across all traditional businesses, particularly Entertainment Imaging.
Kodak CEO and Chairman Antonio M. Perez states that during 2009, Kodak doubled the installed base of its consumer ink-jet printers (from approximately one to two million units). He also states that the company saw increased sales of its commercial ink-jet systems, including a 33% increase in sales of its VL2000 production-printing system.
Following is performance by each of the company's business units:
Within the Consumer Digital Imaging Group, which includes consumer ink-jet printers/All-in-Ones, fourth-quarter sales were $1.212 billion, a 27-percent increase from the prior-year quarter. Fourth-quarter earnings were $380 million, compared with a loss of $41 million for 2008's fourth quarter. Kodak says these improvements were driven by a combination of higher intellectual-property licensing revenue, and improved profitability in consumer ink-jet printers (including the 81% revenue increase in consumer ink-jet hardware and ink). Also contributing were improved performance by Digital Capture & Devices and Retail Systems Solutions, and reduced SG&A expenses across the segment. Excluding revenue from intellectual-property royalties, segment earnings improved by more than $100 million. The Graphic Communications Group's fourth-quarter 2009 sales were $779 million, a 5% decline from fourth-quarter 2008. Fourth-quarter earnings from operations for the segment were $36 million, a $40 million improvement versus 2008's fourth quarter. Kodak says this earnings increase was primarily driven by operational improvements across all product lines, increased demand for digital plates and enterprise workflow products, and lower raw material costs. The Film, Photofinishing and Entertainment Group reported fourth-quarter 2009 sales of $589 million, a 10% decline compared to 2008's fourth quarter. 2009 fourth-quarter earnings from operations for this segment were $53 million, compared with earnings of $39 million for 2008's fourth quarter. The firm says the increase in earnings was driven by operational improvements in Traditional Photofinishing (film), cost reductions across the segment, favorable foreign exchange, and improvement in raw material costs, partially offset by industry-related volume declines in Film Capture, and negative price/mix.
Full-Year 2009
For full-year 2009, the company reported a loss of $232 million, or $0.87 per share. This compares to a loss of $727 million, or $2.58 per share for full-year 2008. Full-year 2009 revenue totaled $7.606 billion, a 19% decline compared to full-year 2008. Full-year 2009 digital revenue totaled $5.345 billion, a 17% decline compared to full-year 2008.
The complete press release detailing the company's fourth-quarter and 2009 results can be accessed here.