Kodak reports $1.38 billion consolidated net loss for 2012; revenue falls

By Jim Witters

Wilmington, Del., March 11 - Eastman Kodak Co. reported a 2012 consolidated net loss of $1.38 billion, according to the 2012 Form 10-K filed March 11 with the Securities and Exchange Commission.

Excluding reorganization and restructuring costs of $1.07 billion, the loss for the year would have been $308 million.

Meanwhile, Kodak reported improved earnings for its two segments that comprise the company's commercial imaging, which will be the strategic focus of the business in the future.

The operating loss for the digital printing and enterprise segment and the graphics, entertainment and commercial films segment improved by $278 million in 2012.

The company cut $226 million in selling, general and administrative costs during the year.

With other profit improvement initiatives implemented for 2013, Kodak believes it is on a path to emerge from Chapter 11 reorganization in mid-2013, according to the 10-K.

Kodak's revenue declined 20% from 2011 to $4.11 billion in 2012.

The company says the drop reflects "strategic decisions to focus on profitable businesses and accounts, soft industry demand as a result of the broader economic downturn in some businesses and regions, lower sales of traditional products, and unfavorable foreign exchange impact."

"We progressed in 2012 by maintaining absolute focus on our customers," said Antonio M. Perez, chairman and chief executive officer. "We earned our customers' continuing loyalty, and look forward to moving ahead with even deeper business relationships built around the industry's most comprehensive and innovative portfolio of solutions.

"We also optimized our use of the Chapter 11 process, which offers valuable restructuring advantages despite the many demands it also imposes."

The company's worldwide cash balance was $1.14 billion at the end of 2012.

Kodak is a Rochester, N.Y.-based imaging technology products and services provider to the photographic and graphic communications markets. The company filed for bankruptcy on Jan. 19, 2012 in the U.S. Bankruptcy Court for the Southern District of New York under Chapter 11 case number 12-10202.

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