S&P: Eastman Kodak unaffected

Standard & Poor's said Eastman Kodak Co.'s (BBB-/Watch Negative/A-3) preliminary full-year 2004 results do not currently affect its ratings, which remain on CreditWatch negative.

S&P said Kodak's 2004 revenue, excluding foreign currency benefits, was flat as a 40% increase in digital sales (30% excluding acquisitions) offset a 16% deterioration in traditional sales. EBITDA, excluding restructuring expenses, was also flat year-over-year, primarily because of significant cost reductions.

Profitability was consistent with the company's guidance, but cost cutting cannot continue to support the company's operating results in light of rapid and accelerating declines in traditional photography revenue, according to S&P.

S&P said the CreditWatch listing continues to reflect concern about Kodak's near- to intermediate-term profit and cash flow prospects given its deteriorating traditional imaging businesses and the uncertain profit potential of its consumer digital and graphics communications businesses.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.