Jan 31, 2006

Kodak's digital sales overtake film

For the first time in the company’s history, Kodak's digital sales made up 54% of total revenue for 2005, exceeding the film revenue. The news came on the same day that the company reported that total losses for this year could top $1 billion, after the fifth consecutive quarter of losses. On the positive side, sales of Kodak digital cameras are up.

“Kodak is now a thriving digital company,” said Antonio M. Perez, Chairman and Chief Executive Officer, Eastman Kodak Company. “The fourth quarter marked the first time that we managed the company as it will be run in 2006, and the digital earnings performance was exceptional. And for all of 2005, we made tremendous progress on our digital transformation. We completed an aggressive acquisition program that established Kodak as a powerhouse in the graphic communications market, we strengthened our market position in consumer digital with several innovative new product introductions, and we made substantial progress on our goal of reducing our traditional manufacturing footprint, while benefiting from the strong cash flows available from that business. We enjoy a solid cash position, and we are determined to expand profit margins in the sizable digital businesses that we have assembled.”