Eastman Kodak Co., Rochester, N.Y., reported second-quarter financial results for 2018, delivering net earnings of $4 million on revenues of $372 million and continued growth in its KODAK SONORA Process-Free Plates, KODAK FLEXCEL NX Packaging and KODAK PROSPER Inkjet businesses. The company also it ended the quarter with a cash balance of $275 million and expects to generate cash in the second half of 2018. Kodak will also refinance $400 million in debt.
Revenues for the quarter were $372 million, a decline of $9 million compared with the second quarter of 2017, according to Kodak. The company reported second-quarter GAAP net earnings of $4 million and Operational EBITDA of $9 million, down $3 million compared with the second quarter of 2017. The decrease was primarily driven by the $7 million year-over-year adverse impact of the cost of aluminum, which was partially offset by growth in key products as well as cost reductions in Kodak’s Advanced Materials and 3D Printing Technology Division.
In otehr news, Kodak is exploring options to divest its flexographic division. The company has engaged UBS Investment Bank as its financial adviser for the transaction. Kodak’s Flexographic Packaging Division produces and markets the FLEXCEL NX system of flexographic imaging equipment, printing plates, consumables and related services. For the last twelve months, FPD reported revenues of $150 million.
“This is a great opportunity to unlock value for shareholders given the strong interest we have received in the Flexographic Packaging Division. FPD has performed exceptionally well over the past five years and has become a significant player in the industry. This business is an excellent example of Kodak incubating and bringing disruptive innovation to the marketplace. Kodak has been evaluating monetization opportunities for the last several years in order to deleverage the company and we believe this is right time to monetize this valuable asset,” said Kodak CEO Jeff Clarke. “Following this transaction, Kodak’s improved capital structure will allow us to increase our focus on demonstrated growth engines, while continuing to invest in and provide solutions across the commercial printing, film, and advanced materials industries.”
Film division sales up and loss narrows
Consumer and Film Division (CFD) revenues for the second quarter were $48 million, an increase of $1 million over the same period lasst year. Operational EBITDA was negative $4 million for the quarter, compared with negative $5 million in Q2 2017. The compans said CFD’s Industrial Film & Chemicals business experienced strong order volume which more than offset the expected decline in Consumer Inkjet. The division’s brand licensing business added three new licensees during the quarter.