Kodak Reports $282-Million Loss

Eastman Kodak Co., scrambling to squeeze bigger profits from digital photography, posted its seventh quarterly loss in a row Tuesday and moved to axe 2,000 more jobs as it navigates a historic shift away from its waning film business.

Its shares tumbled nearly 14% to their lowest close in 15 years.

Largely because of $214 million in restructuring costs, Kodak lost $282 million, or 98 cents a share, in the April-June quarter, close to doubling its loss of $155 million, or 54 cents a share, in last year’s second quarter.

Stung by a continuing rapid slide in sales of silver-halide film, Kodak’s cash cow for much of the 20th century, revenue fell 9% to $3.36 billion from $3.69 billion.

Kodak has struggled to turn a profit even while becoming a major player in recent years in the digital arena. With its digital-imaging sales outpacing those from film, paper and other chemical-based products, the 126-year-old photography icon is trying to find ways to wring larger profits from newly dominant markets.

“They have reached a critical mass in digital sales, which means they don’t have to aggressively pursue sales through price cuts and can focus on profitability,” said Ulysses Yannas, a broker with Buckman, Buckman & Reid in New York.

As part of that strategy, Kodak said Tuesday that it was shifting manufacturing of digital cameras to Flextronics International Ltd. and transferring 550 employees to the Singapore-based company.

Those will be among 2,000 jobs that Kodak plans to eliminate by the end of next year -- on top of 22,000 to 25,000 jobs targeted since January 2004.

Kodak did not disclose where the other layoffs would be made, but analysts think most are associated with its tightening of global sales operations and its $1.8-billion buyouts last year of Canada’s Creo Inc. and Sun Chemical Corp.’s 50% stake in Kodak Polychrome Graphics.

Kodak’s stock fell $3.05 to $19.20 -- its lowest close since $19.17 on July 24, 1991.