In Landmark Third Quarter, Kodak Returns to Profitability
Digital Printing and Enterprise (DP&E): The DP&E Segment consists of Digital Printing,Packaging and Functional Printing, Enterprise Services & Solutions, and Consumer Inkjet Systems businesses.
| Millions of dollars | 3Q 2014 | 3Q 2013 | 9 Months 2014 |
9 Months 2013 |
| Revenue | $ 164 | $ 198 | $ 498 | $ 593 |
| Gross Profit | $ 40 | $ 47 | $ 121 | $ 158 |
| Percent of Revenue | 24% | 24% | 24% | 27% |
| Selling, General and Administrative (“SG&A”) | $ 35 | $ 45 | $ 119 | $ 145 |
| Research and Development (“R&D”) | $ 19 | $ 23 | $ 68 | $ 63 |
| Segment Loss | $ (14) | $ (21) | $ (66) | $ (50) |
| Operational EBITDA 1 | – | $ 6 | $ (15) | $ 8 |
DP&E had sales of $164 million in the third quarter of 2014, a decline of 17% from the $198 million of the previous-year quarter, driven primarily by the decline in the Consumer Inkjet business that Kodak has exited.
Sales of KODAK FLEXCEL NX Products for package printing continued to enjoy strong growth in the quarter, on track with expectations, with revenue from FLEXCEL NX Plates up by 34%.
Operational EBITDA for the DP&E Segment declined from $6 million in the 2013 third quarter to zero in the 2014 quarter, largely as a result of the decrease in consumer inkjet ink sales. Gross profit percent remained essentially flat, with positive impacts from inventory revaluation as a result of fresh start accounting being offset by consumer inkjet ink sales constituting a lower percentage of the segment’s gross profit dollars, as well as lower sales of consumables in the digital printing business.