Kodak and Xerox review Q3 numbers

Eastman Kodak Company, which reported a net loss of USD 21m and a decline in overall sales in Q3, remains positive due to significant growth in a number of product lines.

 

Meanwhile Xerox, the USD 19.5bn turnover group showed a decline in sales of 10% to USD 4.3bn during the period. On cue, chairman and chief executive Ursula Burns said Xerox was considering “a range of opportunities” aimed at maximising the shareholder value.

 

Kodak and Xerox said the decline was due to the adverse impact of currency exchange. Kodak stated there were expected declines in revenues from legacy consumer inkjet printer cartridge sales.

 

The highlights were: the turnover at Kodak’s Print Systems division was down 13% to USD 278m; while volumes of its Sonora process-free plates increased by 41% and the number of customers grew by 19% to more than 2,700.

 

In the Enterprise Inkjet Systems division, sales were down from USD 43m to USD 39m in Q3, compared to the same period last year. The company said results for this division also reflected “investments in a new generation of printer systems”, which will be unveiled in 2016. Revenues from Kodak’s Prosper inkjet presses jumped by 27%.

 

Kodak's chief financial officer John McMullen added: “We expect to generate cash in Q4 2015 and in 2016, with the majority of restructuring and legacy payments behind us. We have substantially reduced our cost structure and are in line to achieve a greater than USD 100m improvement in 2015."

 

Meanwhile Ursula Burns of Xerox was asked some tough questions by financial analysts during a conference call. These were related to the joint-venture with Fujifilm, whether the Xerox business could be up-for-sale; and finally if Xerox is on the lookout for suitable acquisitions of small- and medium-scale?

 

Burns said, “Although we already have taken steps to accelerate cost reductions and prioritise investments to drive improved productivity and higher margins, our board determined that undertaking a comprehensive review of structural options for the company’s portfolio is the right decision at this time.”

 

Kodak’s share price rose by 2.9% to USD 16.87 after the results (52 week low: USD 13.25; high: USD 23.82). Xerox’s share price fell by 3% to USD 10.03 after the Q3 results announcement.