Kodak Gets Red Eye from Red Ink

ROCHESTER, N.Y. ( TheStreet) -- No one's smiling for the camera. In these troubled times, perhaps shoppers can't seem to find anything worth capturing -- resulting in a $189 million loss for Eastman Kodak ( EK).

That translates into a per-share loss for Kodak of 70 cents, its third consecutive period of red-ink. The reasons are well-documented: pinched by the recession, consumers are cutting back on digital-camera purchases, film and other photography products.

The news sent Kodak shares plummeting 11% to $2.96 in morning trading Thursday.

Results were a far cry from the profit of $495 million, or $1.62 a share, the company reported in the year-ago period.

Excluding one-time restructuring and tax charges of $75 million, or 28 cents a share, Kodak lost $116 million, or 42 cents a share, during the quarter. Those adjusted results still missed analysts' expectations of a 37-cent loss.

Sales tumbled 29% to $1.77 billion, as revenue from the company's digital businesses dropped 28% to $1.17 billion. Traditional film-based revenue -- on its way to obsolescence -- fell 30% to $593 million.

Investments in new products like higher-margin digital cameras and video cameras, weighed on second-quarter results, but the company said these moves will lead to improved cash and earnings in the second half of the year.

Going forward the company expects sales to sink between 12% and 18% this year, but sees 4% revenue growth on average through 2012.

Rival camera giant Canon ( CAJ) said earlier in the week that profit tumbled 86% to $164 million, while Sony ( SNE) reported a smaller-than-expected loss of $392 million.

-- Reported by Jeanine Poggi in New York.

Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.

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