Eastman Kodaku2019s US headquarters has neither confirmed nor denied a report that it plans to cut compact camera production in the wake of a 25% slump in revenue.
Eastman Kodak?s US headquarters has neither confirmed nor denied a report that it plans to cut compact camera production in the wake of a 25% slump in revenue.
Yesterday, Kodak?s CEO Antonio Perez was quoted as telling Wall Street analysts that the firm plans to dispose of its less successful businesses.
?He did not give details but indicated by way of example that Kodak might cut back on its point-and-shoot digital camera business,? reported the Rochester Democrat and Chronicle newspaper.
Asked to comment on the report, Eastman Kodak spokesman David Lanzillo told us: ?Antonio?s comment was meant to convey the fact that we are continuing to follow the strategy that is already in place in our Digital Capture and Devices business ? essentially, we will continue to aggressively focus on the profitable segments of that market, and we are willing to trade top-line growth for improved earnings.?
He added: ?That strategy is already paying off. In 2010, excluding intellectual property revenue, Digital Capture and Devices finished the year with a higher gross profit rate and comparable gross profit dollars, despite the fact that revenues declined by 13%.?
Kodak sales revenue dropped 25% to $1.93billion for the last three months of 2010, compared to the same quarter a year earlier.
Kodak achieved a 5% increase in Consumer Digital Imaging Group sales.
It attributed a boost in earnings in this sector to a rise in Consumer Inkjet profits and licensing of its intellectual property.
Gross profits on Kodak?s printer ink doubled in 2010.