Kodak Posts Big Loss; Suspends Div; Cutting More Costs

Eastman Kodak (EK) this morning posted a larger-than-expected first quarter loss , suspended dividend payments and announced some new steps to cut costs. For the quarter, Kodak posted sales of $1.48 billion, down 29% from a year ago, and well below the Street consensus of $1.64 billion. The company lost $1.34 a share in the quarter, including 39 cents a share in restructuring charges; the loss of 95 cents on a pro forma basis was much worse than the Street consensus for a loss of 33 cents a share. Gross margin the quarter was 13.1%, down from 20.3% a year ago. I would note that SG&A was down 20% and R&D was off 21% - both less than the rate of decline at the top line. Kodak has $1.309 billion in cash - and $1.306 billion in debt. To conserve cash, the company is suspending dividends on its common stock. The company also said it will cut the salary of CEO Antonio Perez by 15%. Board member compensation will be reduced by 10%. Senior management will also have a 10% salary cut ... (link)