Kodak’s Graphic Communications Group first-quarter 2009 sales were $603m, a 26 per cent drop from the first-quarter of 2008. The company says the revenue decrease was driven by a market-related decline of 30 per cent in prepress solutions and a 12 per cent price and mix-related decline in digital printing.
The company reports that first-quarter loss from operations for the segment totalled $60m, compared with a loss of just $1m in the year-ago quarter. This earnings decline was primarily driven by lower volume and price across several product lines, along with a negative impact from foreign exchange, partially offset by reductions in SG&A and R&D costs.Kodak also says that in order to conserve cash and protect its investments in core digital growth businesses, its Board of Directors has decided to suspend future cash dividends on its common stock effective immediately.
In other movements, beginning immediately and continuing through the end of 2009, Antonio Perez, chairman and CEO of Eastman Kodak Company will reduce his salary by 15 per cent. Members of Kodak’s Board of Directors will also reduce their direct cash compensation by 10 per cent for the remainder of 2009. In addition, other members of the company’s senior leadership team will reduce their base salary for the balance of 2009 by 10 per cent.
Antonio Perez says, “In the face of this challenging economic environment, we continue to work on those things within our control – focusing on our core digital technologies, optimizing our portfolio of cash generating businesses, achieving the full potential of our transformational businesses, reducing our cost structure and conserving cash.”
He continues, “The additional steps we are announcing will enable us to continue our cost reduction efforts while helping to avoid the need for further position reductions beyond our current restructuring program.”
