Eastman Kodak Company (EK) reported results for the fourth quarter and fiscal year 2009.
Kodak reported earnings from continuing operations of $439 million, or $1.36 per share, compared to a loss of $914 million or $3.40 per share in the fourth quarter of 2008. Reported EPS was far above the Zacks Consensus Estimate of $0.18. Full-year 2009 losses were $232 million or $0.87 versus a loss of $727 million or $2.58 in 2008 and a loss of $1.47 according to the Zacks Consensus Estimate.
Fourth-quarter sales were $2.582 billion, a sequential increase of 45% from the third quarter of 2009 and a 6% increase from the year-ago quarter, including 4% from a favorable foreign exchange impact.
Revenue from digital businesses totaled $1.991 billion, a 12% increase from $1.779 billion in the prior-year quarter, resulting from the combination of an increase in non-recurring intellectual property licensing revenue and increased demand for consumer inkjet printer systems, kiosk media and digital plates. Revenue from the company’s traditional business decreased 10% year over year to $589 million for the fourth quarter due to the reduction in demand across all traditional businesses, particularly Entertainment Imaging.
Full-year revenue totaled $7.606 billion, a 19% decline from 2008. Full-year digital revenue totaled $5.345 billion, a 17% decline from 2008, and traditional revenue totaled $2.257 billion, a 24% decline. These results reflect the recession’s impact on demand, especially in the first half of 2009.
Net cash used in continuing operations from operating activities increased $8 million for the year ended December 31, 2009 compared with the prior year. However, Kodak has a strong balance sheet with net cash of $833 million at the end of December 2009.
During the fourth quarter, the company announced plans to implement a targeted cost reduction program (the 2009 Program) to more appropriately size the organization in view of the current economic environment. The execution of the program began in January 2009. This, along with new product launches, will enable the company grow despite the difficult environment.
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