On the brink: Is Kodak's picture fading?
Filed under: Company News, Columns
Like many iconic U.S. companies now struggling to thrive, or even just survive, Eastman Kodak (EK) is a former titan rocked by technological changes that fundamentally altered the market for its most important products.
Long one of the world's leading manufacturers of photographic film, Kodak has struggled in the era of digital cameras. And that has forced it to make painful cuts. Kodak, based in Rochester, New York, announced in January that it would slash its workforce by as much as 18%, to fewer than 20,000 employees: roughly the number of workers it had during the Great Depression, and a fraction of the more than 145,000 it employed at its peak in the late 1980s.
All of which has focused attention on the company's finances. In March, credit ratings firm Moody's listed Kodak among 283 companies on its "bottom rung" list of companies most likely to default on their debt, a characterization Kodak rejects. "Any speculation, however informed, suggesting that Kodak is less than financially sound, is irresponsible," spokesman David Lanzillo said in a statement.
That may be, but investors have taken a dim view of the company's prospects of late, sending its stock down 60 percent so far this year, compared with a 1.8 percent gain for the S&P 500 through May 29.
Tim Catts is a writer for DailyFinance. You can follow him on Twitter at timcatts.
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Reader Comments (Page 1 of 1)
6-01-2009 @ 9:15PM
MARY said...
The demise of Kodak is no surprise to me. My sister and Brother-in-law used to work for them.
They have bee doing "cutbacks" and "layoffs" in November of each year, for at LEAST 20 years.....
It is sad.
I have seen some of the "digital" films" for xrays and CT scans -- they are no sharper or clearer than the standard film. They just COST MORE!! (and guess who that expense gets passed on to!!)
I will miss my little Kodak "one use" cameras". They were wonderful!
Would the last person out, please shut off the lights?
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6-01-2009 @ 7:14PM
Peter Williams said...
Please keep going some of us still use a lot of your product.
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6-04-2009 @ 9:58PM
RUSS said...
KODAK ...ROCHESTER, NY'S ANSWER TO THE COAL MINE....LOUSY EXECUTIVE LEADER SHIP ...I'D FIRE THE ENTIRE RESEARCH AND DEVELOPEMENT TEAM ...THEY DIDN'T SEE DIGITAL COMING???THEY SHOULD GET OUT OF THE DARKROOMS MORE OFTEN
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6-05-2009 @ 10:19PM
Rob said...
Didn't see digital coming??? Kodak actually invented the digital camera in the early 80's.
anyways, all isn't lost for the little yellow box. the company is gaining marketshare in the printer business, and they're selling lots of those digital cameras too.
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