Kodak Reports 1st-Quarter Sales of $2.889 Billion

Kodak Reports 1st-Quarter Sales of $2.889 Billion

Eastman Kodak Company reported that revenue rose 2% in the first quarter, led by a 29% increase in the sale of digital products and services. On the basis of generally accepted accounting principles in the U.S. (GAAP), the company reported a first-quarter loss of $298 million, or $1.04 per share, largely stemming from restructuring charges ($197 million after taxes) and rising silver and oil costs.

“Our first quarter results continue to show the expected strong seasonality of our business. Our results are essentially on plan, with some units ahead and some behind,” said Antonio M. Perez, Chairman and Chief Executive Officer, Eastman Kodak Company. “My expectations for Kodak’s financial performance this year are essentially unchanged. We expect to achieve our 2006 performance targets in the areas of digital earnings growth, digital revenue growth, and cash generation.

“We ended the quarter with more than $1 billion in cash on our balance sheet, and our cash consumption was essentially on plan,” said Perez. “Digital earnings improved, compared to the same period last year, and that improvement accelerated during March, which increases our confidence for a solid full-year performance. We now expect to achieve profitability in our entire digital portfolio during the third quarter, a full quarter sooner than last year.”

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