Kodak Takes Next Steps toward Successful Emergence

[photo.net_industry_news]

<h2 id="prHeadline">Kodak Takes Next Steps toward Successful Emergence</h2>

<h3 id="prSubHeadline">Company to Focus Primarily on Commercial, Packaging and Functional Printing Solutions and Enterprise Services; Initiates Sales Processes for Personalized Imaging and Document Imaging Businesses; Discussions Continue on Digital Imaging Patent Portfolio, which May Be Sold or Retained</h3>

 

 

ROCHE STER, N.Y., August 23 --

<p>Eastman Kodak Company today outlined its next steps toward a successful emergence from Chapter 11 reorganization as a company primarily focused on commercial, packaging and fun ctional printing solutions and enterprise services. Accordingly, the company has initi ated sale processes for its market-leading Personalized Imaging and Document Imaging businesses.<br>

Ko dak believes that the sale of these assets, as well as continued cost-reduction initiatives, curta ilment of its legacy liabilities, and the monetization of the company’s digital i maging patent portfolio, will be significant milestones toward completing the company’s reorga nization and emergence from Chapter 11 during 2013.<br>

“The initiation of a p rocess to sell the Personalized Imaging and Document Imaging businesses i s an important step in our company’s reorganization to focus our business on the commercial markets and enable Kodak to accelerate its momentum toward emergence,&rdq uo; said Antonio M. Perez, Chairman and Chief Executive Officer. “In addition, we continue ou r initiatives to reduce our cost structure and streamline our operating models in an effort to return the company to profitability.”<br>

“We are reshaping Kodak. We continue to reb alance our company toward commercial, packaging and functional printing – in which we have the bro adest portfolio solutions – and enterprise services. These businesses have substantial long-term growth prospects worldwide and are core to the future of Kodak. We are confident that our competitive advanta ges in materials science and deposition technologies, as well as our know-how in digital imaging, will enab le us to capitalize on those opportunities and extend our leadership in key growth markets.”<br>

Kodak note d that in addition to the commercial, packaging and functional printing and enterprise services businesses, it also continues to own and operate the Consumer Inkjet, Entertainment Imaging, Commercial Film and Sp ecialty Chemicals businesses, given the company’s expertise, capabilities and strong customer relati onships in these markets, as well as their combined cash-generating capability.<br>

The Personalized I maging business consists of Retail Systems Solutions (RSS), Paper & Output Systems (P&OS) and Event I maging Solutions (EIS). RSS is the worldwide leader in retail print solutions with a global footprint of 105,000 K ODAK Picture Kiosks; P&OS includes the broadest portfolio of traditional photographic paper an d still camera film products; and EIS provides souvenir photo products at theme parks and other venues. The Do cument Imaging business provides a leading and comprehensive portfolio of scanners, capture software and service s to enterprise customers.<br>

“Personalized Imaging and Document Imaging are valuable businesses t hat enjoy leading market positions as a result of superior products and service offerings. We remain steadfast in our commitment to our customers, and we will work to ensure that they continue to receive the exceptional levels of quality and service they have come to expect from Kodak. Customers remain the top priority of all our businesses – those we intend to sell and those that will remain part of Kodak, ” Perez said.<br>

Kodak said it would move forward as quickly as possible and has targeted completing these transactions in the first half of 2013. Lazard is adviser to Kodak in the s ale process.<br>

In accordance with its prior announcement, the company is continuing discussions with parties with respect to the potential sale of its digital imaging patent portfolio. The company reitera tes that it has made no decision to sell the portfolio and Kodak may, in consultation with creditors, retain the portfolio as an alternative source of recovery for creditors.<br>

“As we move for ward with the Chapter 11 process, we are focused on delivering the highest value to our creditors so that we can emerge as a sustainable, profitable company that continues to meet the needs of our customers,” Perez concluded.</p>

<p>Source: <a href="http://www.kodak.co

m/ek/US/en/Kodak_Takes_Next_Steps_toward_Successful_Emergence.htm">http://www.kodak.com/ek/US/en/Kodak_Takes_Next _Steps_toward_Successful_Emergence.htm</a></p>

 

 

[hjoseph7]

<p>This guy Perez has been on board for who knows how long and is still batting a big fat ZERO. Not sure how long Koak is going to put up with this...</p>

[joseph_wisniewski]

<p>I did a little research. The first big reduction of film (both still and movie) R&D from the standard for viable companies (about 6%, in Kodak's sector) to an untenable 3% came in 2006. Regardless of what you saw in the press releases, that's where Kodak made it official corporate policy that they were shutting down their film business.</p>

<p>Last week, we saw Kodak renegotiate their movie film contracts so that they can shut down that business on short notice. The movie industry says that they expect to be at 100% digital distribution in 2015 or 16. Kodak obviously has the ability to run the numbers better than most "external" analysts, and it's obvious, in hind sight, that back in 2006 they implemented a 10-year plan to get shut of the film business.</p>

<p>Unfortunately, this required a good parallel 10-year plan to generate a viable business in some other sector, which they appear to have failed to do. They never finished the book, only making it up to chapter 11.</p>

[joseph_wisniewski]

<p>Harry, Peréz came on board in 2005. I just described what happened in 2006. You do the math...</p>

[MichaelChang]

<p>For all its faults, Kodak is still a $6B company and unlikely to disappear tomorrow. It's tough to steer an ailing elephant and we're likely to see more losses before any plan succeeds, if it ever does. </p>

[yuri_yupiter3]

<p>Re a 6 Billion dollar company.<br>

<br /> Where did you get that figure?<br>

<br /> Wall Street values Kodak stock at 24 cents with a market cap of just 66 Million; about 1/90th of the 6 Billion mentioned<br /> In the last year Kodak is in chapter 11 bankruptcy.<br>

Kodak stock got delisted as a NYSE stock and lost is EK ticker symbol.<br>

Kodak stock is now traded as a pink sheet iffy stock as ticker EKDKQ.<br>

The stock is no longer valued as a marginal stock since it is so risky ie garbage junk status., ie 100k worth of Kodak stock in a brokerage account is worth less than a single dime as far as a loan. Thus a dime in a margin account allows one to loan a nickel ; but 100k worth of kodak stock has zero value for a loan.<br>

<br /> Kodak was a Dow 30 stock in the Dow Jones from the 1930s to 2004 when it got booted from the index.<br>

<br /> Kodak might have 6 Billion in Assets, but an rational investor looks at the liabilities too.<br>

<br /> A neighbor who has a 1 million dollar house plus cars plus stocks is not worth 1 million if their debts are 1.2 million.<br>

<br /> Kodak is in the same boat, one as an investor looks at Kodak's assets and liabilities too.<br>

<br /> In Kodak's Bankruptcy papers in Jan 2012 :<br>

<br /> * Liabilities exceed assets by about $1.65 billion<br>

<br /> Kodak had a market cap of 31 Billion fifteen years ago. It was 66 million yesterday; a drop of over 400 times<br>

<br /> Last October Kodak had assets of about 5 billion and liabilities almost 7 billion.<br /><br /> Kodak has about 37k folks on pensions, toxic sites and not enough cash flow to make ends meet.<br>

Thus in January they got a 950 million line of credit from Citibank and are in bankruptcy selling off "the families silverware to pay the light bills" <br /><br /></p>

 

[MichaelChang]

<blockquote>

<p><em>"Re a 6 Billion dollar company. Where did you get that figure?"</em></p>

</blockquote>

<p><a href="http://www.sec.gov/Archives/edgar/data/915389/000091538912000031/emn2011form10_k.htm#item6">http://www.sec.gov/Archives/edgar/data/915389/000091538912000031/emn2011form10_k.htm#item6</a></p>

[yuri_yupiter3]

<p>HI Michael<br /> Your link is for a different company called Eastman Chemical that has the ticker symbol EMN. This company is not in bankruptcy and has an actually great profit and this company pays a dividend too. Eastman Chemical has a PE of 13.6 and has earnings of 4.06 per share. The shares are at 55.26 bucks</p>

<p>Eastman Chemical was founded by Kodak after World War I and made chemicals in the photo industry and during WW2 made RDX explosives for Army. They made over 1 million pounds per day of explosives during the WW2.</p>

<p>Eastman Chemical was spun off by Eastman Kodak back in 1994 and no longer is part of Eastman Kodak at all.</p>

<p>Investors who owned say 400 shares of Eastman Kodak stock in 1994 received 100 shares of the new spinoff company Eastman Chemical.</p>

<p>Since Eastman Kodak today is in Chapter 11 Bankruptcy they probably cannot spin off the film division. The high Kodak mucky mucks want hard cash to repay the loan sharks ie Citibank the 950 Million they owe.</p>

<p>Today EMN is a healthy profitable company. Today EXDKQ is a sick bankrupt company sell off things to keep the lights on</p>

[billangel]

I would suspect that the phrase "curtailment of its legacy liabilities" in its press

release is a euphemism for shedding the company of its responsibility to pay

pensions and health care benefits for its retirees.

[yuri_yupiter3]

<p>http://www.businessweek.com/news/2012-08-31/kodak-tribune-jefferson-county-amr-atp-bankruptcy</p>

<p>

[rossb]

<p>Well it sounds like Kodak film is going down the tube. I have stuck with Kodak all this time hoping my few dollars spent on kodak film would help along with many other consumers of course. Once the film is sold to another company if that were to actually happen I may or may not purchase kodak film. Just will have to see what happens. I have quite a bit of Kodak film currently and most likely will not purchase any more Kodak film as they will either be bankrupt or sold before I will need the film. I am not going to stockpile film as there is only one place in my city or county to have film processed. If I lose that place to process film then I am pretty much done in. I tried mail order and I cannot handle it when they lose my film and the next place to process the film is a day trip driving. Not something I am willing to do. I always have felt that it was a matter or time and now it looks as the time is upon us. I regret all the jobs and Pensions that have and will be lost.</p>

<p>The last time I went to Disneyland there was Kodak yellow all over the place. However I have a new grand daughter and she will grow up going to disneyland and never miss it. She has no idea and film will just be something they did back in the day. Well time marches on.</p>