Kodak Posts Loss
As the silver-halide film business continues to shrink in the wake of digital photography, Eastman Kodak Co. has posted its seventh quarterly loss in a row and plans to eliminate 2,000 jobs by the end of next year, according to the Associated Press. This is in addition to the 22,000 to 25,000 jobs already targeted since January 2004.
Kodak lost $282 million between April and June, mostly due to $214 million in restructuring costs related to its “digital transformation.” A Kodak press release says the loss was “essentially in line with the company’s expectations.”
Antonio Perez, chief executive officer, anticipates that the majority of the restructuring costs will be behind the company by the end of next year, and Kodak will be positioned for success in digital markets. Kodak expects to earn $350 million to $450 million from digital operations in 2006.