Kodak Expected to Take $17 Million Loss for Sale of Prosper Commercial-Inkjet-Printing Business
The Democrat & Chronicle reports that Eastman Kodak may take a loss of $17 million related to restructuring and related charges when it completes the sale of its Prosper commercial-inkjet printing business.
Kodak had reported in 2016 that it wanted to sell its Prosper business, which is located in Ohio, in order to focus on developing its Ultrastream inkjet printer that can handle mainstream commercial printing and package-printing jobs.
In a filing with the U.S. Securities and Exchange Commission last week, Kodak stated that it would incur somewhere between $12 million and $17 million in costs related to selling its Prosper business. According to The Democrat & Chronicle, as much as $7 million of that will be for employee separation benefits; $6 million in inventory write-downs; $3 million for asset write-offs; and up to $1 million in cash charges.
The Democrat & Chronicle also states:
“Kodak expects that between $3 million and $5 million in separation benefits will require cash expenditures related to special termination benefits from the company’s pension plans.
Kodak said last month that the sale of the Propser business would extend into 2017.
Details of the sale remain confidential, although CEO Jeffrey Clark has remained upbeat on the sale in reports to investors. Kodak announced the charges as a way to streamline costs in the Prosper sale.”
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