Kodak Still Blurry: Fool by Numbers

On Oct. 31, imaging company Eastman Kodak (NYSE: EK  ) released earnings for the third quarter ended Sept. 30.

• Declining volume and an unfavorable price mix led to a 9.8% drop in revenue.
• Earnings under generally accepted accounting principles showed improvement, but remained in negative territory.
• Net cash from operating activities is also negative through nine months, but management said it expects a positive full-year total of $800 million to $1 billion.
• Our Motley Fool CAPS community has pinned a meager one star on this stock.

(Figures in millions, except per-share data)

Income Statement Highlights

	Q3 2006	Q3 2005	Change
Sales	$3,204	$3,553	(9.8%)
Net Profit	($37)	($915)	N/A
EPS	($0.13)	($3.19)	N/A
Diluted Shares	287	287	0.0%

Get back to basics with a look at the income statement.

Margin Checkup

	Q3 2006	Q3 2005	Change*
Gross Margin	27.28%	25.95%	1.33
Operating Margin	0.06%	(3.46%)	3.52
Net Margin	(1.15%)	(25.75%)	24.60

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets	Q3 2006	Q3 2005	Change
Cash + ST Invest.	$1,102	$610	80.7%
Accounts Rec.	$2,541	$2,867	(11.4%)
Inventory	$1,478	$1,657	(10.8%)

Liabilities	Q3 2006	Q3 2005	Change
Accounts Payable*	$3,740	$3,932	(4.9%)
Long-Term Debt	$3,247	$2,559	26.9%

*Accounts payable includes other current liabilities.

Learn the ways of the balance sheet.

Cash Flow Highlights

	YTD 2006	YTD 2005	Change
Cash From Ops.	($72)	($60)	N/A
Capital Expenditures	$282	$332	(15.1%)
Free Cash Flow	($354)	($392)	N/A

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Related companies:

• Canon (NYSE: CAJ  )
• OCE (Nasdaq: OCENY  )
• X-Rite (Nasdaq: XRIT  )

Related Foolishness:

• Kodak Shutters Digital Cameras
• I Was Wrong About Canon
• A Fool Looks Back

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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.