According to Reuters, Eastman Kodak forecast a wider-than-expected loss and said revenue could drop as much as 18 percent in 2009.In a statement on Feb. 03, 2009, Kodak reps explained the company expected revenue to drop 12 percent to 18 percent in 2009, leading to a loss from continuing operations of $200 million to $400 million.
Analysts had expected a 2009 loss of only $35 million, according to Reuters.
In the statement, Chief Executive Antonio Perez said the company's balance sheet is "solid", but that it sees "no immediate signs of economic recovery."
Compounding its woes, the recession has pushed Kodak's consumer customers to scale back on vacations and other events that typically spur use of photography services. Meanwhile, businesses have reduced spending on printing systems.
One year ago, before the worst of the economic downturn, Kodak's perspective looked much brighter. It had anticipated revenue by a compound annual growth rate 5 percent from 2008 to 2011. A new restructuring plan was elaborated. During that restructuring, Kodak halved its workforce.
As a result of the economic environment, the company plans to cut costs, including investment in growth areas, such as Image Sensor Solutions, its Kodak Gallery online service, Electrophotographic Printing in GCG, and Organic Light Emitting Diodes (OLED).
Source: www.reuters.com
Key words: Kodak, economic downturn, loss in value
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