Eastman Kodak Company reported its financial results for the third quarter 2017, ended September 30, 2017, delivering a net loss of US$46 million on revenues of US$379 million. The company generated net earnings of US$12 million in its corresponding 2016 quarter. Revenues for the quarter of US$379 million compared with revenues of US$411 million for the third quarter of 2016, a decline of $32 million or eight percent.
The GAAP results include US$58 million, net of tax, of non-cash impairments related to the write-off of goodwill in the Print Systems segment and assets for the previously announced exit from copper mesh touch screen products. This includes the construction of a new Flexcel NX manufacturing line in Weatherford, OK, and a contingent consideration payment related to the divestiture of Kodak Alaris in 2013.
In terms of key product lines, the volume for Kodak’s Sonora process-free plates grew by 24 percent for its most recent quarter. Sonora plates now account for 19 percent of the division’s total plate unit sales. Volume for Flexcel NX plates in 2017 Q3 grew by 11 percent and annuities revenue for Prosper inkjet grew by nine percent.
In releasing its results, Kodak pointed to a range of factors impacting its 2017 outlook, including a slowdown in the commercial printing industry and higher costs adversely impacting Print Systems Division, Software and Solutions Division and Enterprise Inkjet Systems Division. “An overall print market slowdown and rising aluminum costs have impacted our commercial print business,” said Jeff Clarke, Kodak Chief Executive Officer.
The company maintained its range for 2017 full year revenue of US$1.5 billion to US$1.6 billion and adjusted its forecast for 2017 Operational EBITDA to be within a range of US$60 million to US$65 million.
The Print Systems Division (PSD), Kodak’s largest division, had Q3 revenues of US$232 million, a decline of US$18 million, or seven percent, compared with Q3 2016. The Flexographic Packaging Division (FPD) includes Flexcel NX systems and plates, as well as other packaging businesses like analog flexographic plates and letterpress plates, proofing products and services. FPD revenues for Q3 were US$34 million, flat with the same period a year ago.
Kodak Reports Q3 Loss
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