October 22, 2003

Photo kiosks Sales Up at Kodak

The company had a litany of positive results to back up the point. Kodak reported a 117% increase in consumer digital camera sales, a 43% increase in online photofinishing sales, a 33% increase in inkjet paper sales, and a 14% increase in the sale of photo kiosks and related media.

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Kodak earnings beat street


By Ben Rand
Staff writer

(October 22, 2003) � Eastman Kodak Co. rode an improving economy and growth in consumer digital photography to produce better-than-expected financial results during the third quarter.

Rochester�s largest employer, a company in the throes of a major technological shift, made $122 million or 42 cents a share during July, August and September. That�s down from $334 million or $1.15 a share in the same period a year ago.

But excluding a series of one-time charges, Kodak earned $252 million or 88 cents a share. Analysts had been expecting 57 cents a share.

The earnings report comes as a restless group of large shareholders prepares to meet in New York to consider challenging Kodak�s decision to hasten its transition from chemical to computerized imaging. The company cut its stock dividend in September to provide money to invest in businesses such as consumer digital photography, commercial and home printing, display screens for consumer electronics and others.

Some investors fear that Kodak�s strategy is high risk and are questioning whether it is the best use of shareholder resources.

Kodak appeared to be talking directly to that group in its earnings release this morning.

�With success,� Chairman and Chief Executive Officer Dan Carp said in a statement, �will come higher sales, profits and investment returns for Kodak shareholders. I am committed -- along with a management team experienced in digital markets -- to generate as much value as possible from Kodak�s assets, and we are convinced that the plan....represents the best way to achieve that goal.�

The company had a litany of positive results to back up the point. Kodak reported a 117% increase in consumer digital camera sales, a 43% increase in online photofinishing sales, a 33% increase in inkjet paper sales, and a 14% increase in the sale of photo kiosks and related media.

In a sign of the changing times, results of the company�s consumer photographic film business - its historic crown jewel - were not mentioned in the earnings news release.

Yet Kodak today announced an investment designed to support the film business as it moves into what the company describes as a slow, but permanent decline. Kodak has said it will selectively invest in film opportunities.

Kodak will spend about $100 million to purchase 20 percent of China Lucky Film Co., that country�s largest domestic maker of film.

Under the agreement, Kodak will, over time, provide Lucky with technical support, equipment upgrades and training. Lucky will pay Kodak for the use of selected technologies, and will pay dividends on the shares Kodak owns. The agreement will run for 20 years.

Posted by Craig at October 22, 2003 02:38 PM