2 Elevated to Key Executive Posts at Kodak
Eastman Kodak Co. Chairman George Fisher, his overhaul of the photo giant seemingly on pause, Tuesday elevated two low-profile executives to help him oversee each of the $13.5-billion company’s businesses.
Fisher said in an interview that Daniel Carp, now head of Kodak’s businesses in Africa, Europe and the Middle East, and Carl Kohrt, general manager of Kodak’s health sciences businesses, are on “a short list” of people who may one day succeed him as chief executive. Fisher is 55.
“We are defining two people who are leading candidates [for chief executive] beyond the date I’m here,” Fisher said.
The Rochester, N.Y.-based company also announced that Leo (Jack) Thomas, a 34-year veteran of Kodak, will retire next May as executive vice president.
Fisher said he is naming himself chief operating officer and that both Kohrt and Carp would be assistant chief operating officers. All Kodak’s businesses, manufacturing, research and development and geographic units are responsible directly or indirectly to the three.
Fisher is a former chief executive of Motorola Corp. He has run Kodak since late 1993 and is in the middle of a turnaround planned to take three to five years. He is working under a long-term contract that contains potentially lucrative stock options.
Fisher has in the past two years sold off a pharmaceutical arm and other businesses, cut Kodak’s debts, and pressed the company to cut costs, develop products faster and to focus on both traditional chemical-based photography and electronic imaging.
Kodak controls about 70% of the U.S. market for 35-millimeter photo film but is working to get ahead in electronic imaging businesses certain to eat into demand for traditional film.
Under Fisher, Kodak has struck alliances with Microsoft, IBM, Sprint and other technology companies to develop a consumer electronic camera, home photofinishing and other products.
“They pulled two guys out of the blue,” said Prudential Securities analyst Alex Henderson, who rates Kodak shares a “hold.” “It reflects some frustration on Fisher’s part.”
Kohrt and Carp are seasoned executives who have proved able to cut costs and step up spending prudently when business prospects for Kodak warranted, Fisher said.
Fisher said Carp led Kodak’s Europe businesses when their revenues increased at twice the rate of economic growth. Kohrt, Fisher said, managed Kodak’s health businesses through divestitures and increased market share in key segments. Carp will focus on consumer photography, Latin America, Asia and other sectors, Fisher said. Kohrt’s portfolio will include Kodak’s health-related businesses, copier and other office-based units, and research and development.
Fisher, who already serves as chairman, president and chief executive, said he will be the main supervisor of sectors such as equipment manufacturing and digital and applied imaging, a chief hope at Kodak for revenue growth.
“The biggest challenge is to demand and get very high financial performance levels out of our operations,” Fisher said.
Kodak disappointed many on Wall Street for the quarter ended June 30, reporting costs higher than expected and earnings below what had been forecast. Fisher repeated in the interview that Kodak’s spending on general administrative and other costs was unacceptably high last quarter. He declined to discuss third-quarter financial performance.
Kodak shares, which have been trading in recent months below the level of $60 to $64 a share, reached last spring, closed up 25 cents at $57.75 on Tuesday on the New York Stock Exchange.
