Eastman Kodak Reports First Quarterly Profit Since Bankruptcy Protection

(RTTNews) - Eastman Kodak Co. (KODK) on Tuesday reported its first quarterly profit since emerging from bankruptcy last year and said it remains on track to achieve its full-year revenue target.

However, the company's profit for the third quarter declined from last year, when results included a hefty gain.

Iconic photographic equipment maker Kodak emerged from Chapter 11 bankruptcy in September 2013 as a technology company focused on commercial imaging markets.

Jeff Clarke, Chief Executive Officer of Eastman Kodak said, "Our first profitable quarter since our emergence is a milestone. Strategic technology product areas, especially in our graphics business, are showing momentum, and we continue to invest significantly in our technology and to build our installed base."

Clarke added, "However, Kodak continues to operate too closely to our breakeven point. While our costs are down, we will continue to reengineer processes, streamline our organization, and improve execution and accountability to accelerate and broaden our momentum."

Net income attributable to the company for the third quarter was $17 million, down sharply from $1.99 billion in the year-ago quarter, which included a reorganization item gain of $2.21 billion.

However, sales for the third quarter edged up to $564 million from $563 million in the year-ago period.

Segment-wise, Graphics, Entertainment & Commercial Films sales for the quarter increased 13 percent to $400 million, as a significant decline in motion picture film was more than offset by $51 million in non-recurring intellectual property licensing revenue.

Digital Printing and Enterprise revenue declined 17 percent to $164 million, reflecting the decline in the Consumer Inkjet business.

Kodak noted that during the quarter, it recorded strong sales growth for key strategic technology products.

Looking ahead to fiscal 2014, Kodak said it expects to meet its target for revenue between $2.1 billion to $2.3 billion and operational EBITDA of $145 to $165 million.

EK closed Tuesday's trading at $20.87, down $0.80 or 3.69 percent on a volume of 222,684 shares.