Kodak's 2nd quarter segment earnings results show improvement
Posted at: 08/03/2012 3:21 PM | Updated at: 08/03/2012 5:39 PM
There are still big loses for Kodak but for the first time since filing for bankruptcy, there is some positive news in the company's earnings report.
Second quarter results show sales of $1.1-billion between April and June, that's down 27-percent from the same period last year and Kodak lost $299-million, which represents $1.10 per share. But experts say what Kodak is doing is working because the losses aren't as great as they have been.
Kodak is not out of the woods yet but these numbers indicate the former film giant is moving in the right direction. That's according to George Conboy, the president of Brighton Securities. He says Kodak is still losing money, but not as much as had been expected or as much money as the company had been losing.
Conboy says it means Kodak is getting closer to breaking even and perhaps making a profit next year.
In its quarterly report filed with the Securities and Exchange Commission, Kodak reported eliminating 2,050 jobs. That and selling off some of its businesses that were losing money have helped.
Conboy says to see further growth, Kodak will have to continue to reduce its expenses and increase revenue. He says Kodak has been doing both but may need be even more aggressive. “It's like plugging holes in the hull. Now you have to bail the water out but less water is coming in so the second quarter looks better. The company is not profitable yet -- a little like you at your house, you’re not making enough to pay the bills. You'll want to bring the income up and the expenses down until those two lines meet. Kodak's doing the same thing.”
Kodak filed for bankruptcy protection January 19. Its sales for the first six months of the year have been just over $2-billion – which is down 27-percent when compared to the first half of 2011.
The next big date for Kodak is August 13. That is when the company patents go on sale. It’s predicted those patents could go anywhere from $2-billion on up depending on how the bidding warn turns out. This money will be operating capital for Kodak while it continues restructuring.