Eastman Kodak Co. (NYSE: EK) is doomed. It has already been rumored in prior weeks that the company was going to restructure. Now its earnings could make a rumor a self-fulfilling prophecy if repeated a couple more times. To make matters worse, it appears to need to raise capital.
The company lost $222 million, which came to -$0.83 EPS. Revenue was down 17% to $1.46 billion. On top of losses, Kodak now sees 2011 revenue down in a range of $6.3 to $6.4 billion versus its prior forecast of $6.4 to $6.7 billion.
Eastman Kodak’s cash reserves were down to $862 million from $957 million in the summer report. The imaging company gave guidance for te cash balance to be $1.3 to $1.4 billion. That figure is said to exclude any intellectual-property pacts. Eastman Kodak had previously projected $1.6 to $1.7 billion as the year-end target.
What is happening is a capital raise, and this could go very well or very poorly for the company. The sum appears to be $500 million. Things are so low there now that Eastman Kodak has a market value of only $322 million.
JON C. OGG
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