NewsMine — economy — united-states — 2005 — 2005-apr-july — Viewing Item

Kodak lays off 10 thousand workers { July 20 2005 } Original Source Link: (May no longer be active)    http://www.nytimes.com/2005/07/20/business/businessspecial3/20cnd-kodak.html http://www.nytimes.com/2005/07/20/business/businessspecial3/20cnd-kodak.html July 20, 2005 Kodak, Posting Another Loss, to Lay Off 10,000 Workers By VIKAS BAJAJ Eastman Kodak said today it would lay off up to 10,000 more people because its film business was declining much faster than the company had anticipated. The latest cuts will be in addition to the 15,000 positions it announced plans to eliminate in 2004, and come as the company, which is based in Rochester, posted its third straight quarterly loss today. About 7,000 of the cuts will come in the manufacturing operations. The company estimates it will save about $800 million a year once the jobs are eliminated by the middle of 2007, but said it would incur $470 million in restructuring costs. "Our disappointing start in the first half of the year makes it clear that I need to make some changes, and make them now," Antonio M. Perez, Kodak's chief executive and president, said in a statement. "Sales of our consumer traditional products and services are declining faster than expected. While we are not in a position to control the rate at which traditional markets decline, there is a lot I can do about the cost structure of the traditional portfolio." Kodak lost $146 million (51 cents a share) in the second quarter that ended June 30 on revenue of $3.7 billion. That compares to a profit of $136 million (46 cents) on revenue of $3.5 billion for the same period last year. Though it had been clear that Kodak was undergoing a difficult transition from film to digital, investors and analysts appeared unprepared for today's news. Analysts had projected the company would have a 80.5 cent profit for the second quarter, not a loss. Kodak had losses of $142 million and $59 million in the first quarter and fourth quarter of 2004 respectively. Digital cameras have had one of the fastest growth rates of any new technology, and many consumers are no longer using traditional cameras or film, for which Kodak was the major domestic supplier. Also, because people are not using as much film, demand for photo processing and paper has also dropped off dramatically. Like other companies, Kodak has enjoyed brisk growth in digital product sales, but it hasn't been fast enough to make up for the rapidly shrinking film business that the company pioneered. Together the company's sales of digital and film products fell 12 percent to $2.2 billion in the second quarter. (Much of the remainder of Kodak's revenue is made up of graphics and health products.) As of the end of last year, the company employed 54,800 people. Kodak said it had already eliminated 13,475 of the initial 15,000 jobs to be cut. Copyright 2005 The New York Times Company

120 thousand united airline employees lose pensions { May 11 2005 } American obesity sending health costs soaring Consumer prices rise greater than expected Dow has biggest 2 day drop in two years Durable goods orders fall by most in 2 years Economy drags heels and inflations fears rise { April 29 2005 } Fed raises key rate on inflation fears { May 3 2005 } Fed raises rates to 3 and half as measured plan Fed says inflation pressures could be intesnifying { April 12 2005 } General motors shifts engineer positions to brazil { June 29 2005 } General motors to cut 25 thousand jobs { June 8 2005 } Greenspan says fed will keep raising rates Greenspan will keep raising rates he says Housing prices loom as concern { July 20 2005 } Huggies cuts six thousand jobs Industry squeezed by soaring energy prices { June 26 2005 } Kodak lays off 10 thousand workers { July 20 2005 } London blasts help dollar and stock gains Manufacturing slow down boosted stocks they say Manufacturing weakest since 2003 { June 1 2005 } Massachusetts homes sales plunge 11 percent { June 24 2005 } Real wages falling at fastest rate in 14 years { May 10 2005 } Sales of homes hit record as prices soar { May 24 2005 } Snow says oil prices hurting economy { June 28 2005 } States costs soar under drivers license law Stocks continue april decline hitting 2005 lows Stocks fall amid oil price worries { June 21 2005 } Stocks head lower on surging oil Stocks rise on jump in oil prices { June 17 2005 } Student loan interest will double Trade deficit unexpectedly shrank to 55b Trade gap widens more than expected US stocks fall as IBM earnings drag tech shares down US tourism losing billions because of image { May 8 2005 } Wages lagging behind inflation { April 11 2005 } Weak consumer spending damps speculation of quickening inflation Files Listed: 36

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