Kodak reports a difficult first quarter
Kodak boss Jim Continenza said the company has taken “unprecedented steps” to ensure supplies for its customers during the continued supply chain disruption.
Commenting on the company’s first quarter results, Kodak Executive Chairman and CEO Continenza said, “We continue to navigate through the ongoing global impact associated with the Covid-19 pandemic, the war in Ukraine and other world events.
“The company is experiencing supply chain disruptions, distribution, material and labor shortages, and an increase in the cost of distribution materials. We have many measures in place to mitigate these challenges, including increasing safety stocks, increasing lead times, and implementing pricing actions.
He noted, “Despite the above shortages and cost increases, we have taken unprecedented steps to ensure supplies for our customers.”
In the three months to March 31, Kodak saw overall sales up $25 million to $290 million, but all of its businesses were in the red.
Its traditional printing division, which includes plates, saw sales up $24 million to $148 million, but posted an operating EBITDA loss of $7 million to EBITDA profit. of $5 million from the previous year.
Non-Sonora processed plate volumes increased 24% during the period.
Continenza previously claimed that Kodak would be “the last company standing in the plates”.
Sales of its digital printing wing fell $8 million to $64 million and the company went from breaking even to an operating EBITDA loss of $5 million.
However, annuities from its Prosper inkjet business increased by 2%.
Kodak’s new Ascend digital press launched last fall became available in the second quarter.
At Advanced Materials, sales increased $8 million to $54 million and its operating EBITDA loss decreased $1 million to $3 million.
Kodak plans to capitalize on its chemistry and coating expertise with new products and has begun coating substrates for energy storage battery materials for applications such as electric vehicle batteries. It started a limited production of around 3 m² but could increase up to 80 m².
Continenza said Kodak also uses its expertise to produce coated fabrics using light blocking technology.
This includes a carbon-free fabric covering called Kodalux. A new coating machine is being installed at its Eastman Business Park in the United States. Applications include roller shutters, decorative draperies and awnings. The coating uses microparticles to diffuse, absorb and reflect light.
Additionally, Kodak uses its proprietary copper microwire technology and high-resolution printing techniques to manufacture transparent antennas.
“We leverage our proprietary technologies and high-resolution printing to manufacture custom transparent antennas for automotive and other applications,” he said.
Kodak also began construction of a $20 million laboratory and manufacturing facility to manufacture reagents for medical applications.
The company’s stock price fell from $4.99 to $4.01 at the time of the announcement (52-week high: $10.01, low: $3.50).