ROCHESTER, New York – Eastman Kodak Company (NYSE: KODK) reported its financial results for the first quarter of 2024, showing a 10% decline in revenue compared to the same period last year. The company’s revenue was $249 million, down from $278 million in the first quarter of 2023. Despite the decline in revenue, Kodak reported adjusted earnings per share (EPS) of $0.30 for the quarter.
Kodak’s gross profit fell slightly by 2% to $49 million, compared with $50 million in the prior year. However, the gross profit percentage increased from 18% to 20%, indicating better cost management. The company’s GAAP net income was $32 million, down 3% from the previous year’s first quarter.
Operating EBITDA decreased 56%, falling to $4 million from $9 million in the first quarter of 2023. This decline was primarily due to lower volumes and increased investment in information technology systems to improve operational efficiency. Despite these investments, Kodak managed to increase its quarter-end cash balance to $262 million, up from $255 million at the end of December 2023.
Jim Continenza, executive chairman and chief executive officer of Kodak, commented on the company’s commitment to operational excellence and innovation in its core businesses. “We continue to invest in innovation in our core businesses of printing, advanced materials and chemicals,” Continenza said. He also spoke about the company’s plans to showcase new products at the upcoming Drupa exhibition in Germany.
David Bullwinkle, Kodak’s chief financial officer, highlighted the improvement in gross margin percentage and the company’s commitment to streamlining operations. “Operating EBITDA for the quarter was impacted by significant investments in automation and simplification of back office functions,” Bullwinkle said, outlining the company’s strategy for the remainder of the year.
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Kodak shares were down slightly after the earnings report, down 1.48%. The market’s muted reaction suggests investors are taking a cautious view of the mixed financial results, which included both lower revenues and flat gross margins.
As Kodak continues to invest in its strategic plan and operational improvements, the company remains focused on meeting customer needs today while investing in future growth.
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