Eastman Kodak posts profit for its first quarter
Eastman Kodak posts a profit thanks to patent sale, will file reorganization plan on Tuesday
ROCHESTER, N.Y. (AP) -- Eastman Kodak Co. posted a profit for its fiscal first quarter thanks to the sale of its digital imaging patent portfolio.
The Rochester, N.Y., company also said Monday that it plans to file its reorganization plan with a bankruptcy court Tuesday that will outline its roadmap for recovery.
Founded in 1880, Kodak filed for bankruptcy protection at the beginning of 2012. Since then, it has sold off several businesses and said it would shut others so it can focus on commercial and packaging printing.
The company announced separately earlier Monday that it plans to sell its personalized and document-imaging businesses to its U.K. pension plan for $650 million as part of an agreement that settles $2.8 billion in claims that the retirement fund had sought from the photography pioneer.
Eastman Kodak reported that it earned $283 million for the first quarter, versus a $366 million loss in the first quarter last year. Its revenue from continuing operations was $849 million, down 9 percent from $928 million last year.
The latest quarter includes a $535 million gain from the sale of its digital imaging patent portfolio, which was partially offset by a $77 million non-cash goodwill impairment charge related to the patent sale.
Eastman Kodak said the quarter reflects improved performance by its commercial imaging segments. Its digital printing and enterprise business had a loss of $8 million, versus an $89 million loss in the same quarter last year, as it lowered costs and focused more heavily on its consumer inkjet business. Its graphics, entertainment and commercial segment delivered a $38 million profit, versus a loss of $84 million in the prior year, helped by licensing revenue, improved prices and cost cuts.
Chairman and CEO Antonio M. Perez said the results show that Kodak is on the right track.
"As we continue to drive improvements in our business to complete our transformation, I am more confident than ever that we will succeed," Perez said in a statement.
