The Endless Unwinding of Eastman Kodak (EK)
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…
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
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
