Kodak Expands Chinese Facility - Analyst Blog
Last week, Eastman Kodak Company (EK) announced plans to open the second production line for its Xiamen printing plate manufacturing facility in China and the Asia-Pacific region. The expanded, state-of-the-art facility in China’s southeastern city will enhance Kodak’s manufacturing capacity for offset products and underline the company’s commitment to strengthen its production base for customers in the fast-growing market.
In 2009, Kodak expanded its Center of Operations and Support, comprising customer service and internal operations, in Xiamen. The center offers order processing, business procedures and other services, as well as human resources and financial support. In August 2009, Kodak relocated its Southeast Asia-based Logistics Center to Xiamen to support its fast-growing business in the Asian market. These two strategic moves demonstrate the company’s commitment to its key markets.
Recently, Kodak reported results for the fourth quarter and fiscal year 2009. Earnings came in at $1.36 per share, compared to a loss of $3.40 per share in the fourth quarter of 2008. Results were much above the Zacks Consensus Estimate of 18 cents. Full- year 2009 losses were $232 million or 87 cents 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 million, 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. Full-year revenue totaled $7,606 million, a 19% decline from 2008. These results reflect the recession’s impact on demand, especially in the first half of 2009.
In January 2009, Kodak executed a targeted cost reduction program (the 2009 Program) to resize itself in view of the current economic environment. This, along with new product launches and numerous expansion programs, will enable the company to grow despite the difficult environment.
Read the full analyst report on "EK"
Zacks Investment Research
The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
