Kodak reports fourth-quarter profit, job cuts
Eastman Kodak Co., Rochester, N.Y., said fourth-quarter sales were $3.441
billion, an increase of 2 percent from $3.358 billion in the fourth quarter
of 2001. Excluding foreign exchange, sales were unchanged. The company reported
net income of $113 million, compared with a reported loss of $206 million
in the fourth quarter of 2001.
Kodak plans to cut another 2,300 to 2,900 jobs in 2003. Of the cuts,
500 to 700 are part of previously announced cost control plans, while 1,800
to 2,200 are new. A significant portion of the reductions will come from
Kodak's photofinishing operations in the U.S. and Western Europe. Kodak
will take charges of $75 million to $100 million in 2003 to cover the costs
of the initiatives. The company expects to save $65 million to $85 million
annually from the moves.
Highlights for the quarter included a 32 percent increase in sales
of Digital & Applied Imaging products and services; an 8 percent increase
in sales of Entertainment Imaging products and services; and a fifth consecutive
year of steady share in the U.S. consumer film market.
PhotoWorks reports loss, decline in film processing
PhotoWorks Inc., Seattle, Wash., reported net revenues of $8.4 million,
compared to $11.1 million for the first quarter of fiscal 2002 and a net
loss of $1.1 million, compared to a net loss of $167,000 in the first quarter
of fiscal 2002. The company said revenues from film processing declined
and that the trend should continue.
The International Trade Commission upheld an infringement determination
that the company's preloaded camera infringes certain patents owned by Fuji
Photo Film Co. Ltd. for single-use cameras. A penalty of $1.6 million was
recommended and the Commission is determining what, if any, penalty to assess.
Moto Photo to sell assets for $2.7 million
Moto Photo Inc., Dayton, Ohio, said it received permission from the
U.S. Bankruptcy Court to sell most of its assets to MOTO Franchise Corp.
for about $2.7 million, plus or minus certain adjustments. The closing on
the sale must occur on or before Jan. 31.
MOTO Franchise Corp. was formed by Harry Loyle and the principals
of five of the company's current area developers. Loyle is currently principal
shareholder in and president and CEO of an entity that is an area developer
for the company.
Moto Photo Inc. will cease store operations and operating activities
by or shortly after the completion of the sale. MOTO Franchise Corp. plans
to maintain the headquarters in Ohio.
Kmart files plan of reorganization, disclosure
Kmart Corp., Troy, Mich., on Jan. 24 filed its proposed Plan of Reorganization
and related Disclosure Statement with the U.S. Bankruptcy Court in Illinois.
With this filing, Kmart hopes to emerge from Chapter 11 as early as April
30.
Dow Jones Newswires reported that by early April, Kmart will be left
with about 1,500 stores after two rounds of store closings.
Kmart said the Disclosure Statement filed included information regarding
the accounting and stewardship investigations previously disclosed. Reuters
reported that Charles Conaway, the former CEO of Kmart, may face legal claims
stemming from investigations into whether former managers precipitated Kmart's
downfall. Conaway's lawyers did not return calls to respond to the allegations.
Kmart said it will pay its new CEO, Julian Day, a base salary of $1
million, plus another $1 million bonus when it exits bankruptcy.
For more details, visit www.pmai.org to read the Jan. 27 and 28 Newsline
International.
Kmart sues Kodak for $48 million over marketing
Kmart Corp., Troy, Mich., filed a lawsuit against Eastman Kodak Co.,
Rochester, N.Y., seeking $48 million in incentive, advertising and marketing
payments that Kmart says are due under the terms of the companies' contract,
The Wall Street Journal reported. Kmart filed the suit Jan. 20 in U.S. Bankruptcy
Court in Illinois. Kodak processes film for Kmart customers and provides
photo-developing.
Visual Color Lab, Ashton form joint venture
Kelly McKenna, president of McKenna Professional Imaging, Waterloo,
Iowa, and Lee Zinsli, president of Ashton Photo Co., Salem, Ore., announced
a joint venture between McKenna's wholly owned subsidiary Visual Color Lab
Inc., San Diego, Calif., and Ashton Photo. The purpose of this venture is
to provide solutions through product and service offerings for the sports
photography market. Both companies have made long-term financial commitments
toward furthering this objective.<<back to top
Kodak names COO and chief strategist
Eastman Kodak Co., Rochester, N.Y., named E. Mark Rajkowski chief operating
officer of its Digital & Applied Imaging division. Kodak also appointed
Philip Gerskovich chief strategist of D&AI and general manager of the
division's Software & Digital Services business, with responsibility
for developing new consumer products and services. Both Rajkowski and Gerskovich
will report to Willy Shih, president of D&AI. The appointments take
effect Feb. 3.<<back to top
Industry notes
· Pakor Inc., Minneapolis, Minn., was awarded Mackay
Photopak's Top Sales Distributor of the Year for 2002. This marks the ninth
year that Pakor has achieved this sales milestone. Pakor achieved double-digit
sales growth and a record-breaking gross sales volume of Mackay Photopak
envelopes and packaging products.
· Netprinter owner Scott Rodgers of Stuart-Rodgers Ltd.,
Chicago, Ill., set up a website at http://66.47.160.175 to consolidate user
information for Gretag Netprinter and Mileca printers owners. The site features
the opportunity for users to sell and trade parts and exchange maintenance
ideas.
· Panasonic, Secaucus, N.J., created a major advertising
campaign targeting Hispanic consumers. Print ads and television commercials
will appear in Hispanic media in five top U.S. markets.
· Cameta Camera, an eBay seller based in the greater
New York City, N.Y. area, received eBay Electronics "Service Leader
Award." In 2002, Cameta sold more than 26,000 new cameras on eBay.
· AAA Imaging and Supplies Inc., Santa Ana, Calif., moved
to an expanded facility. AAA Imaging and Supplies Inc.'s new address is
3520 W. Warner Ave., Santa Ana, CA 92704.
· Phogenix Imaging LLC, San Diego, Calif., said the Phogenix
DFX Digital Photofinishing System is being test-marketed by three San Diego-area
photo specialty retailers in partnership with Eastman Kodak Co., Rochester,
N.Y.
· Operation Photo, a division of 30 Minute Photos Etc.,
Irvine, Calif., enables military personnel and their families to keep in
contact by converting digital images into prints, which are then mailed
to the United States or overseas through www.operationphoto.com.
--------------------------------------------------------------------------------
Photo Marketing Association International, 3000 Picture Place, Jackson,
MI 49201 USA.Phone (517) 788-8100. Fax (517) 788-8371. Managing Editor:
Bonnie Gretzner, E-mail: bgretzner@pmai.org.
Beth Duiser, E-mail: bduiser@pmai.org.
Subscriptions: One copy free to U.S and Canadian member firms of PMAI. ©2003
Photo Marketing Association International. All rights reserved. Photocoying
by members for internal use is permitted. For address changes, contact PMA
Membership Department: pma_membership@pmai.org.