Eastman Kodak Co posted a sharp quarterly loss and said it would cut up to 4,500 jobs this year after suffering a dramatic decline in demand for digital cameras and commercial printing equipment.
The report sent shares of Kodak down 25 per cent to a historical low, making the company one of the biggest percentage losers on the New York Stock Exchange on Thursday.
The maker of cameras, picture frames and consumer printers and provider of commercial printing services, also plans another round of restructuring to cut costs, the latest in a string of such moves dating back to at least 2003.
About a year ago, Kodak said it had completed an expensive four-year restructuring that transformed it into a maker of digital photography products and printers. During that restructuring, Kodak halved its workforce, which now stands at about 26,900 people.
The company said on Thursday it would reduce its workforce by between 3,500 and 4,500 positions in 2009. Kodak late in 2008 had earmarked 1,000 to 1,500 jobs to be cut in 2009, and on Thursday said an additional 2,000 to 3,000 jobs will be cut.
Standard & Poor's Equity Research Analyst Erik Kolb questioned if Kodak's cost cuts would be deep enough, and wondered what strategy it can dream up to spur sales.
"They were late to the game in their shift to digital and they have been playing catch-up since," he said. "Now, given the deterioration of consumer spending trends, they are still struggling to turn the business away from film sales."
Since late 2003, Kodak has focused on the expanding market for digital devices and services, hoping to outpace the drop in demand for film. But the economy has soured, and consumers are scaling back on vacations and other events that typically spur use of photography services.
Its fourth-quarter loss from continuing operations was $137 million, or 51 cents per share, compared with a year-earlier profit of $215 million, or 75 cents per share. Kodak called the results preliminary because additional asset-related charges may be recorded for the period.
Excluding special items such as restructuring and legal costs, Kodak's loss was 8 cents a share, far short of analysts' expectations of a profit of 19 cents a share, according to Reuters Estimates. Revenue fell 24 per cent to $2.43 billion. Sales of products like still and video cameras and digital picture frames fell 36 per cent.
"During the last three months of the year, we experienced dramatic declines in several of our key businesses due to the slowdown in consumer spending and significantly reduced demand for capital equipment," Chief executive Antonio Perez said in a statement.
The Rochester, New York, based company's new restructuring aims at "rationalising selling, administrative, research and development, supply chain and other business resources in certain areas and consolidating certain facilities." In addition, it will waive wage increases in 2009.
In all, the moves are expected to save Kodak $300 million to $350 million a year. It expects to take charges in the range of $250 million to $300 million for the restructuring, which is expected to take place primarily in the first half of 2009.
Analyst Shannon Cross said Kodak spent about $139 million on dividend payouts in 2008, adding that the dividend "must be at risk... given the substantial pressure on operating cash flow." But despite its desire to cut costs, a spokesman for Kodak said it has no plans to change its dividend.
Agencies
Showing posts with label New York Stock Exchange. Show all posts
Showing posts with label New York Stock Exchange. Show all posts
Friday, January 30, 2009
Monday, December 1, 2008
No global impact; ACS to hire 1,000 in India
Amid gloomy scenario in the global job markets, hiring in India is continuing at a strong pace with world's largest business process ou tsourcing firm Affiliated Computer Services planning to recruit 1,000 people in the next 6-8 months in the country.
"We are looking to increase our headcount by 1,000 employees in India in the next 6-8 months, out of which about 500 would be employed in our new facility at Noida, which is in the process of being set up," ACS India Country Head and Vice President Aman Mustafa said.
The company is in the process of setting up a new facility in Noida, while it already has offices in Bangalore, Kochi and Chennai and the total employee strength of the company is around 5,000 in the country. Bangalore operation has a capacity of about 2,800 people and around 1,800 people are stationed in Kochi.
"Despite the global economic crisis our business has not been affected and our existing and new clients have been approaching us for services to reduce their costs," Mustafa said.
Mustafa further said that ACS Inc's balance sheet is stable with strong cash flows amid the economic downturn, even as its shares have taken a beating at the New York Stock Exchange. The global firm has a market capitalisation of over 3.86 billion dollar.
Recently, a host of firms, including Metlife India, Deloitte Touche Tohmatsu, State Bank of India, Larsen and Toubro are planning to recruit over 70,000 people in the country.
"We are looking to increase our headcount by 1,000 employees in India in the next 6-8 months, out of which about 500 would be employed in our new facility at Noida, which is in the process of being set up," ACS India Country Head and Vice President Aman Mustafa said.
The company is in the process of setting up a new facility in Noida, while it already has offices in Bangalore, Kochi and Chennai and the total employee strength of the company is around 5,000 in the country. Bangalore operation has a capacity of about 2,800 people and around 1,800 people are stationed in Kochi.
"Despite the global economic crisis our business has not been affected and our existing and new clients have been approaching us for services to reduce their costs," Mustafa said.
Mustafa further said that ACS Inc's balance sheet is stable with strong cash flows amid the economic downturn, even as its shares have taken a beating at the New York Stock Exchange. The global firm has a market capitalisation of over 3.86 billion dollar.
Recently, a host of firms, including Metlife India, Deloitte Touche Tohmatsu, State Bank of India, Larsen and Toubro are planning to recruit over 70,000 people in the country.
Monday, November 24, 2008
US-listed Indian cos on a losing spree
Indian companies listed on the American bourses lost nearly six billion dollars in just one week, with the market value of HDFC Bank eroding as much as 1.38 billion dollars, amid worsening financial turmoil and scour corporate news battering world markets.
The 16 Indian firms in the New York Stock Exchange and Nasdaq collectively lost 5.74 billion dollar in their market capitalisation for the week ended November 21, even as two companies gained valuation.
In recent weeks, the American markets went into a tailspin primarily due to heightened concerns of a protracted economic slowdown and declining consumer spending in the world's largest economy.
Among the 16 Indian stocks listed as American Depository Receipts, apart from HDFC Bank, another private sector lender ICICI Bank too lost more than one billion dollars of valuation.
While the market value of HDFC Bank tumbled 1.37 billion dollars, that of ICICI Bank dropped 1.12 billion dollars.
However, pharma major Dr Reddy's Laboratories and outsourcing firm Genpact added to their market capitalisation. Dr Reddy's Laboratories witnessed a rise of 37 million dollar in valuation, whereas Genpact's value increased by 4.3 million dollars.
IT bellwether Infosys' market valuation eroded by one billion dollars, while that of IT major Wipro decreased by 863 million dollars. In addition, Satyam Computer Services saw a value erosion of 457 million dollars.
Further, leading auto maker Tata Motors lost 77 million dollars and telecom entity Tata Communications saw a decline in value to the tune of 677.17 million dollars.
Other entities whose market capitalisation declined are internet firms -- Sify Technologies and Rediff.com, outsourcing entities -- WNS and EXLService Holdings, leading copper producer Sterlite Industries, telecom company Mahanagar Telephone Nigam Ltd and IT firm Patni Computer Systems.
On Friday, the major American indices -- Dow Jones Industrial Average, S&P 500 and Nasdaq Composite -- snapped its four-day losing streak to close in the positive territory.
Dow jumped 494 points to end the day at 8,046.42 points, while S&P 500 rose over six per cent to 800 points. Nasdaq Composite jumped more than five per cent to close at 1,384.35 points.
The surge in stocks was mainly due to media reports that President-elect Barack Obama would appoint Timothy Geithner as the new Treasury Secretary. Geithner is presently the President of the Federal Reserve Bank of New York.
Source: PTI
The 16 Indian firms in the New York Stock Exchange and Nasdaq collectively lost 5.74 billion dollar in their market capitalisation for the week ended November 21, even as two companies gained valuation.
In recent weeks, the American markets went into a tailspin primarily due to heightened concerns of a protracted economic slowdown and declining consumer spending in the world's largest economy.
Among the 16 Indian stocks listed as American Depository Receipts, apart from HDFC Bank, another private sector lender ICICI Bank too lost more than one billion dollars of valuation.
While the market value of HDFC Bank tumbled 1.37 billion dollars, that of ICICI Bank dropped 1.12 billion dollars.
However, pharma major Dr Reddy's Laboratories and outsourcing firm Genpact added to their market capitalisation. Dr Reddy's Laboratories witnessed a rise of 37 million dollar in valuation, whereas Genpact's value increased by 4.3 million dollars.
IT bellwether Infosys' market valuation eroded by one billion dollars, while that of IT major Wipro decreased by 863 million dollars. In addition, Satyam Computer Services saw a value erosion of 457 million dollars.
Further, leading auto maker Tata Motors lost 77 million dollars and telecom entity Tata Communications saw a decline in value to the tune of 677.17 million dollars.
Other entities whose market capitalisation declined are internet firms -- Sify Technologies and Rediff.com, outsourcing entities -- WNS and EXLService Holdings, leading copper producer Sterlite Industries, telecom company Mahanagar Telephone Nigam Ltd and IT firm Patni Computer Systems.
On Friday, the major American indices -- Dow Jones Industrial Average, S&P 500 and Nasdaq Composite -- snapped its four-day losing streak to close in the positive territory.
Dow jumped 494 points to end the day at 8,046.42 points, while S&P 500 rose over six per cent to 800 points. Nasdaq Composite jumped more than five per cent to close at 1,384.35 points.
The surge in stocks was mainly due to media reports that President-elect Barack Obama would appoint Timothy Geithner as the new Treasury Secretary. Geithner is presently the President of the Federal Reserve Bank of New York.
Source: PTI
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