Earnings Preview: Kodak Braced For Slowdown

BEN DOBBIN

ROCHESTER, N.Y. (AP) — Photographic products maker Eastman Kodak Co. reports its results for the third quarter on Thursday. The following is a summary of key developments and analyst opinion related to the period.

OVERVIEW: Kodak, undergoing a tough transition from film to digital imaging, is bracing for a 12 percent to 18 percent drop in 2009 sales because of the economic downturn. Based on 2008 sales of $9.4 billion, its estimate implies sales of $7.7 billion to $8.3 billion. Analysts on average expect sales of $7.32 billion.

Switching the bulk of its business from chemical to electronic technologies cost Kodak $3.4 billion from 2004 through 2007, when it pared its global payroll from 64,000 to 26,900. It is shedding 3,500 to 4,500 jobs this year as the recession erodes sales of digital cameras, film, commercial printers and other products and services. Its work force will shrink to around 20,000 from a 1988 peak of 145,300.

The picture-taking pioneer is investing deeply in consumer inkjet printers and high-speed commercial presses and software while leaning on cash generated by motion-picture film, retailer kiosks and other high-margin products. This year, it aims to double to more than 2 million the number of inkjet printers sold to consumers. Yet that business isn't expected to become profitable until 2011.