Kodak is out with its second quarter results, and while the company is not profitable yet, officials say performance is improving.
Kodak saw a net loss for the quarter of $24 million, down from the loss of $62 million a year ago.
Revenues of $458 million were down 13 percent compared to last year, which the company says was due in part to currency fluctuations, as well as the decline in sales of consumer inkjet cartridges and motion picture film.
Kodak CEO Jeff Clarke says he is pleased with the company’s second quarter operating performance. “We saw solid results from our core printing business divisions and strong growth in our industry leading product lines: SONORA, FLEXCEL NX and PROSPER. I am confident Kodak is on track to meet our financial goals for the year,” Clarke said in a statement
At Brighton Securities, Chairman George Conboy says he doesn't expect the company to become profitable in the near future.
“Kodak is not profitable and frankly it doesn’t look like they will be profitable during this year at all. If we stay with the hospital analogy, we’d say that the bleeding is somewhat less.”
Conboy says Kodak may be making some good products, but competition is tough in the commercial printing and packaging that the company now focuses on.
“It’s a very competitive marketplace. Kodak has some skilled people, and I think they have savvy management, but they’re fighting an uphill struggle in a very tight market, they’re doing the best they can, but it isn’t printing any money yet.”
Kodak now employs about 1750 people in Rochester, compared to 2090 a year ago, a 16 percent reduction.
Worldwide, employment is now at 6700, down 18 percent from a year ago.
A company spokesperson says Kodak continues to make necessary but painful cost cutting decisions as it focuses n returning to profitability and growth
