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Earnings Up, But Revenue Down for Kodak’s Second Quarter

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On August 8th, the Eastman Kodak Company reported financial results for the second-quarter 2019, including net earnings of $201 million on revenues of $307 million and continued growth in key product areas.

Net earnings of $201 million were versus net earnings of $4 million for second-quarter 2018, but the gains were mostly due to Kodak’s sale of its Flexographic Packaging Division for $207 million

Revenues of $307 million were down $25 million from a year ago.

The company says it saw strong year-over-year growth in key product lines in the quarter, including volume for its KODAK SONORA Process Free Plates, which grew by 25 percent.

Kodak stated that these key  product lines achieved strong year-over-year growth for the second quarter 2019:

  • Sales for KODAK SONORA Process Free Plates grew by 25 percent.
  • Annuity revenues for the KODAK PROSPER inkjet platform grew by 9 percent.

“Refinancing the remaining balance of our term debt was a critical step toward creating the foundation for future success,” commented Jim Continenza, Kodak’s Executive Chairman.  “Our priority is generating cash by better serving customers in our core print, film and advanced materials businesses and driving further cost efficiencies.”

Kodak ended the quarter with a cash balance of $216 million, down from the March 31, 2019 cash balance of $240 million.

“By refinancing our term debt, we have eliminated significant interest costs and strengthened our balance sheet,” said David Bullwinkle, Kodak’s CFO.  “During the quarter we delivered continued strong performance in our key growth areas of SONORA Process Free Plates and in PROSPER inkjet annuities. Our goal is to build on that momentum and generate cash.”

Kodak also recently announced it has reached an agreement with Lucky HuaGuang Graphics Company to establish a strategic relationship in China. The company says that by partnering with that company it seeks to significantly  increase the adoption of its SONORA plates in China.

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