17 Jul 2018

Kodak Q4 Revenues Increase and Profits Surge


Kodak Logo

Eastman Kodak Company today reported fourth-quarter 2009 earnings from continuing operations of $430 million, or $1.36 per share, on sales of $2.582 billion, reflecting the emergence of a company able to deliver improved profitability especially as the economy recovers.

"Despite a difficult economic environment, we delivered in 2009," said Antonio M. Perez, Chairman and Chief Executive Officer, Eastman Kodak Company. "Our momentum is returning and our strategy is paying off. During 2009, we generated significant traction with our key digital businesses, we achieved sustainable operational improvements across the company, our earnings improved substantially, and we ended the year with more than $2.0 billion in cash on our balance sheet."

The company's fourth-quarter results demonstrate the success of the focused investments that Kodak is making in new products and growth businesses, including consumer and commercial inkjet and digital plates; the successful conclusion of intellectual property licensing agreements; improved profit margins; and a lean cost structure.

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% of 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% to $589 million for the fourth quarter. This revenue decline rate was significantly reduced compared to the first three quarters of 2009, reflecting sequentially improved demand across all traditional businesses, particularly Entertainment Imaging.

On the basis of U.S. generally accepted accounting principles (GAAP), the company reported fourth-quarter earnings from continuing operations of $430 million, or $1.36 per share, compared with a loss on the same basis of $914 million, or $3.40 per share, in the year-ago period. Items of net benefit that impacted comparability in the fourth quarter of 2009 totaled $90 million after tax, or $0.28 per share, primarily related to benefits from asset sales and tax-related items, partially offset by restructuring charges and other miscellaneous items. Items of net expense that impacted comparability in the fourth quarter of 2008 totaled $893 million after tax, or $3.32 per share, primarily related to a goodwill impairment charge, restructuring charges, a legal contingency, and tax-related items. (Please refer to the attached Items of Comparability table for more information.)

For full-year 2009, the company reported a loss from continuing operations of $232 million, or $0.87 per share. This compares to a loss of $727 million, or $2.58 per share, in 2008. 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 $2.257billion, a 24% decline. These results reflect the recession's impact on demand, especially in the first half of 2009. The company expects that customer demand for its digital products will continue to grow, as the economy recovers.


Other 2009 details:


  • In the fourth quarter of 2009, Gross Profit margin was 34.4% of sales, an increase from 20.4% in the year-ago period. Approximately six percentage points of this increase was driven by productivity improvements and higher demand for digital plates and kiosk media, productivity gains for digital cameras and devices, consumer inkjet, electrophotographic printing and traditional photofinishing, and favorable foreign exchange. The balance of the increase was driven by non-recurring intellectual property licensing agreements.
  • Selling, General and Administrative (SG&A) expenses, on a GAAP basis, were $347 million in the fourth quarter, down 15%, or $61 million, from $408 million in the year-ago quarter, as a result of company-wide efficiency gains.
  • Research and Development expenses, on a GAAP basis, were $86 million in the fourth quarter, down 25%, or $28 million, from $114 million in the year-ago quarter, reflecting the continued focusing of resources to core growth businesses, which require lower research and development investment versus a year ago.
  • Fourth-quarter cash generation, before restructuring payments, was $909 million, compared with $508 million in the year-ago quarter. This corresponds to net cash provided by continuing operations from operating activities of $822 million for the fourth quarter of 2009 and $520 million for the year-ago period. For full-year 2009, cash generation, before restructuring payments, was $45 million, compared with cash usage on the same basis of $147 million for 2008. This corresponds to net cash used in continuing operations from operating activities of $136 million for 2009, compared with a net cash usage of $128 million for 2008.
  • Kodak held $2.024 billion in cash and cash equivalents as of December 31, 2009, up from $1.147 billion on September 30, 2009.
  • The carrying value of the company's debt, on a GAAP basis, stood at $1.191 billion as of December 31, 2009.



Segment sales and earnings from continuing operations before interest, taxes, and other income and charges (segment earnings from operations), are as follows:


  • Consumer Digital Imaging Group fourth-quarter sales were $1.212 billion, a 27% increase from the prior-year quarter. Fourth-quarter earnings from operations for the segment were $380 million, compared with a loss of $41 million in the year-ago quarter. The year-over-year improvement was driven by a combination of higher non-recurring intellectual property licensing revenue; improved profitability in consumer inkjet systems, including an 81% revenue increase in consumer inkjet printer hardware and ink; improved operating performance in Digital Capture & Devices and Retail Systems Solutions; and reduced SG&A expenses across the segment. Excluding the impact of non-recurring intellectual property royalties, segment earnings improved by more than $100 million.
  • Graphic Communications Group fourth-quarter 2009 sales were $779 million, a 5% decline from the fourth quarter of 2008. Fourth-quarter earnings from operations for the segment were $36 million, a $40 million improvement over the year-ago quarter. This earnings increase was primarily driven by operational improvements across all product lines, increased demand for digital plates and enterprise workflow products, and lower raw material costs.
  • Film, Photofinishing and Entertainment Group fourth-quarter sales were $589 million, a 10% decline from the year-ago quarter. Fourth-quarter earnings from operations for the segment were $53 million, compared with earnings of $39 million in the year-ago period. The increase in earnings was driven by significant operational improvements in Traditional Photofinishing, cost reductions across the segment, favorable foreign exchange, and improvement in raw material costs, partially offset by industry-related volume declines in Film Capture, and negative price/mix.


"In the second half of 2009 we began to see some improvement in the economy, and that helped to highlight the true strength of our digital portfolio," said Perez. "During 2009, we doubled the installed base for our consumer inkjet printers while maintaining our price premium. In the fourth quarter, we grew sales of commercial inkjet products, including a 33% increase in sales of our VL2000 printing system and enjoyed continued strong customer orders for our PROSPER product line. We delivered positive cash performance before restructuring for the past two quarters and for all of 2009, and our cost structure is providing us with significant operating leverage as the economic recovery continues. We enter the new year with the most competitive digital portfolio ever, strong presence in key markets, and a significant amount of positive momentum. All of this positions us well for improved performance in 2010."


Sign & Digital UK 2010 – Register for chance to win an Old Trafford VIP Package


Old Trafford

While the main priority for visitors attending the UK’s premier trade event for the visual communications industry is to do business, there are a plethora of other reasons why attendance at Sign & Digital UK 2010 is essential. This years show aims to provide the visitor with the best experience yet.

As well as the usual feast of exhibitors and networking opportunities on the show floor, there are some other exciting benefits to be taken advantage of. As usual, entrance to the event is FREE, all you need to do is simply register online.

Sign & Digital UK brings you the best visitor competitions, and this year is no different. We are offering the opportunity for you and a guest to win VIP tickets to a match at Old Trafford. As part of the package, which is being sponsored by Hybrid Services, you will receive over night accommodation, food and refreshments, entertainment, the chance to meet a famous face and utilise on-site parking.

To register for FREE entrance into the 2010 Sign & Digital UK show, and for further information and to enter the visitor VIP competition visit www.signanddigitaluk.com or email This email address is being protected from spambots. You need JavaScript enabled to view it.

The exhibitor list keeps on growing, and some of the latest to book stands include; agripaflex Ltd, Autobanner, CNC World, Eurostand Display Ltd, Fattorini, Isik Plastik, Polychromal b.v , Profile Tension Systems, The Magic Touch and Taylor Signs

In addition to some of the new exhibitors, some of the biggest names from industry have signed up including Hexis, William Smith, Roland DG, Oce, Hybrid Services/Mimaki, Grafityp and Fujifilm Sericol and many more.

Another fantastic seminar programme is on the cards, with Terry Steeley from Iridius giving demonstrations, tips and creative solutions on Adobe Creative Suite 4, including Photoshop, Bridge, InDesign, Illustrator, Acrobat Pro and Snow Leopard. Also part of the seminar programme will be Corel, who will be demonstrating their latest technology. There will also be more information coming soon on the NEW Software Theatre so keep your eyes peeled!

Following the success of FREE internet access last year at the Sign Makers Bar, this popular feature area returns to the 2010 floor plan. Take a break from the show, it’s a great place to meet industry movers and shakers, network with your peers, pick up your emails and recharge your batteries.


6th HP Digital Production Forum and “Digital Printing Meets Finishing” Open House in Hamburg

Hp 300

"Pure digital print" is the theme of the four-day digital printing event, from 24-27 February, in Quickborn, near Hamburg.

The event, which HP is organising with finishing partner Horizon at Horizon's new German headquarters, comprises the 6th HP digital production forum as well as the "Digital Printing Meets Finishing" open house.

The event is aimed primarily at print service providers and marketing decision-makers who want to get into digital colour printing or who want to expand their digital print service.

The central approach of HP is partnership with customers to help them build their business capabilities and grasp new opportunities.

At the 6th HP DP Forum, which takes place in the first two days, there are two principle themes on the agenda:

"From web-to-print to web-to-business" shows the benefits, applications and earning potential of web-to-print solutions. HP Indigo customer Claus-Peter Scorsch, of novaconcept Schorsch, will give a practical insight into the day-to-day workings of web-to-print applications as tailored solutions for customers and sales channels.

Stefan Hase, owner of consultancy "Wirkung Plus" and of the first German sales academy "Eins Plus"Sales, will speak on strategy and business expansion in the printing sector.

The "Digital printing meets Finishing" open house is a Horizon GmbH. Event and will explore comprehensive end-to-end digital print solutions as well as the high value results possible with the HP Indigo 7000 Digital Press and Horizon finishing systems.

The 6th HP Digital Production Forum takes place on 24 - 25 Feb 2010 from 9.30 -12.30. To register for this event, please visit: www.hp.com/de/dp-forum

The Digital Printing Meets Finishing" open house form HP and Horizon takes place 24 - 26 February 10.00 -18.00 and on the 27th from 10.00 - 16.00.

MK2010 Digital Expo in Milton Keynes on 23rd and 24th February 2010



Celebrate a new decade and discover new print opportunities at MK2010 Digital Expo

Screen is partnering with Konica Minolta, Morgana and Friedheim International for the first MK2010 Digital Expo in Milton Keynes on 23rd and 24th February 2010. As we enter a new decade, the event is designed to showcase the tremendous potential and flexibility of today’s digital print technology to create profitable new applications that energize print businesses and breathe new life into marketing and sales campaigns.

MK2010 brings together top manufacturers, the latest hardware and software, leading industry experts and hands-on workshops in one focused event. This is an extraordinary chance to see the power of print today to produce print-on-demand books and magazines, stunning display graphics, personalized brochures and streamlined web to print in action.

There is a free, open invitation to the event which will run over two days, 23 and 24 February, and is aimed at printers who are looking at digital options, public sector and print room managers, universities and large format users looking for higher quality output.

This is a rare opportunity to see, under one roof, end-to-end production with powerful workflow, print-on-demand and finishing solutions. Industry experts will also be on hand to track the latest trends and explain how businesses can be re-energised in 2010 and beyond.

“MK2010 is a great opportunity for printers looking for digital and finishing options and also for Screen and Konica Minolta workflow users to gain some useful tips and tricks,” says Brian Filler, managing director of Screen UK. “With easy access from London and its close proximity to the M1, Milton Keynes is the perfect location for the UK’s digital print hub.”

For more information and to book a free place go to: www.mk2010digitalexpo.co.uk

or contact Dawn Tate at This email address is being protected from spambots. You need JavaScript enabled to view it. T: 01908 848500.



Recommended cash offer by Canon for all the issued and outstanding ordinary shares of Océ N.V. to create global leader in printing industry

Canon Logo

With reference to the joint press releases of Canon Inc. (trading symbol CAJ) ("Canon") and Océ N.V. (trading symbol OCE) ("Océ") of 16 November 2009 and 14 December 2009, Canon Finance Netherlands B.V., a wholly owned subsidiary of Canon (the "Offeror") and Océ hereby jointly announce that the Offeror is making a fully self-funded, public cash offer for all the issued and outstanding ordinary shares with a nominal value of EUR 0.50 each in the capital of Océ (the "Shares") at an offer price of EUR 8.60 in cash per Share (the "Offer").

Terms not defined herein shall have the meaning as set forth in the Offer Memorandum


  • Canon and Océ aim to create the overall No. 1 presence in the printing industry.
  • The Offer is a fully self-funded and recommended cash offer for all the Shares at an offer price of EUR 8.60 in cash per Share.
  • The Offer represents a premium of 70% over the closing price of Friday 13 November 2009 (being the last trading day before the public announcement of the intended Offer) and 137% over the average share price over the last 12 months prior to 16 November 2009.
  • The Offer presents the best possible way forward for Océ at conditions that are favourable to its Shareholders and all other stakeholders.
  • The Supervisory Board and the Management Board of Océ fully support and unanimously recommend the Offer to all Shareholders for acceptance.
  • The acceptance period under the Offer begins at 9:00 hours, Amsterdam time, on 29 January 2010 and ends at 17:30 hours, Amsterdam time, on 1 March 2010, unless extended.
  • Océ will convene an Extraordinary General Meeting of Shareholders at 14:30 hours, Amsterdam time, on 12 February 2010 at Van der Grintenstraat 1, 5914 HD, Venlo, the Netherlands during which, amongst other things, the Offer will be discussed.
  • The Offer shall be subject to the fulfilment of the Offer Conditions as set out in the Offer Memorandum, including but not limited to, the condition that on the Acceptance Closing Date the number of Tendered Shares together with the Shares that are directly or indirectly held at that time by the Offeror represents at least 85% of the Shares on a fully diluted basis. The Offeror has the right, but not the obligation, to waive certain Offer Conditions, including but not limited to, the 85% acceptance threshold, as further described in the Offer Memorandum.
  • The Depositary Receipt Holders, Ducatus, ASR and ING (approximately 19% of the total share capital), agreed to sell their interests to Canon; large Shareholder Bestinver Gestion S.A., SGIIC (approximately 9.5% of the Shares) has provided an irrevocable undertaking to tender.
  • As at the date of the Offer Memorandum, Canon holds indirectly through the Offeror 23,807,737 Shares, which represent approximately 22.18% of the Company's total issued share capital and 28.05% of the Shares.
Further details, and the full release related to the above is available for review on the Canon website

International Ipex 2010 Media Summit announces Impressive Line-up

Ipex 2010 Logo

The Ipex organisers have revealed the final line-up of companies that will participate at the Ipex 2010 Media Summit, which will take place from 7th – 11th February at the ExCeL Centre in London. Canon Europe, C.P. Bourg, Domino Printing Sciences, Fujifilm Europe, Océ, Pitney Bowes, Red Tie, Ricoh and Xerox will give journalists from over 100 global publications an exclusive preview on what they will showcase at Ipex 2010.

In addition to presentations from exhibitors, the Ipex organisers will also update the media on the current shape of the event as well as new visitor features and initiatives. There will also be a presentation from Pira International about The Great Print Debates at Ipex 2010 - a panel debate that will tackle some of the most critical issues facing the print industry today. Nick Devine, the Print Coach, will be talking about the new seminar sessions at the Printers’ Profit Zone at Ipex 2010.

Comments Trevor Crawford, Ipex 2010 Event Director: “We’re delighted with the level of interest in the Summit from exhibitors and the tremendous commitment from the international media. In holding the event we’re able to further support our exhibitors in targeting the media with their key messages and providing the press with an exciting preview of what Ipex 2010 has in store.“

Jan Hol, Océ’s Senior Vice-President, Marketing Communications, says: "In light of the envisaged transaction between Océ and Canon, we expect strong interest from the media. Océ's presentation will focus on highlights of the envisaged deal and will provide an overview on our latest inkjet and toner based solution highlights for full colour high volume production printing. And we also anticipate making an important announcement on the day that will be of interest to visitors to Ipex!”

Graham Moore, Director of Business Development, Production Printing Business Group at Ricoh, says: “We see the Media Summit as a major platform from which we can reach the wider European production print marketplace with a demonstration of the forward strides Ricoh is making.”

Ronald van Hees, Director of Marketing at Pitney Bowes DMTi Europe, states: “We are enormously excited by Ipex and see February's Media Summit as an ideal opportunity to begin the buzz around Pitney Bowes' presence at the event.

"Pitney Bowes' Ipex 2010 focus is on the integration of print and mail, demonstrating how bringing these two functions together can create significant efficiencies and more optimised ways of working. Key to this integration is Pitney Bowes' new IntelliJet Printing System - a new production colour printing system for high-volume transactional mailers that is already gaining headlines across Europe and North America.

"With the addition of the IntelliJet Printing System to the Pitney Bowes portfolio, the Pitney Bowes stand will be the only place that Ipex visitors can see solutions that play across the entire full integrity end-to-end output management, production colour digital printing and Mailstream production process.

“The Ipex 2010 Media Summit will come at a crucial time in our preparations for Ipex, as it offers a great opportunity to network and to communicate our plans at the show to an international audience.”

Daniel Vande Poel, Managing Director at C.P. Bourg Group says: “We have chosen to participate in the Ipex International Media Summit as part of our core marketing strategy. Although the company has been a leading supplier of print finishing equipment for nearly 50 years, for much of that time many of its products have been sold under other labels through partners such as Xerox, HP Indigo, Kodak and Océ, Heidelberg and Canon. With thousands of users of Bourg equipment benefiting from the in-line solutions, C.P. Bourg Group is now adding focus on marketing its own brand through its global distribution network.”

“At the Ipex Media Summit we’ll outline Xerox’s plans for the show which includes technology advancements and enhancements, workflow and business development solutions – all geared to help graphic communications providers succeed in an ever-changing business environment,” says Eric Armour, President, Global Business Group at Xerox. “Our presentation will also feature customers from around the world discussing how they are growing business and generating new revenue opportunities with Xerox technology and services. Xerox’s all-digital stand promises to be an exciting place at Ipex 2010.”