Bad time to be in the camera business.
Fresh off news that Canon (CAJ) saw profits plunge 91% in Q4, Eastman Kodak (EK) now reports it blew its own quarter.
No great surprise: Cameras are semi-durable goods, and an easy (and expensive) thing to put off buying when times are tight.
Barrons: Kodak this morning said it will cut its staff by 3,500-4,000 jobs in 2009, reducing its workforce by 14%-18%. The company also said it will pay no executive bonuses in 2008, and that it will not issue pay increases this year.
They are doing this, of course, because the economy stinks and the company is struggling. In fact, Kodak also said it has opened talk with lenders to assure continued access to its revolving credit line.
For Q4, the company posted a GAAP loss from continuing operations of $133 million or 50 cents a share, including 42 cents a share in various one-time items; that still leaves the company with a pro forma loss for the quarter of 8 cents a share, well below the Street consensus estimate of a profit of 21 cents. Sales of $2.433 billion were down 24% from a year ago, and well below the Street consensus of $2.81 billion. Digital products sales were $1.779 billion in the quarter, down 23% from a year ago; traditional products were down 27%.
See Also: Cameras Too Expensive For Christmas This Year: Canon's Profits Down 91%
