On Jan. 31, Eastman Kodak
- Although net sales decreased by 9%, the company was able to turn a profit, albeit a small profit, for the first time since December of 2004.
- The company is nearing the end of a large cost-reduction program, in effect since 2004, to transition it from traditional products and services to digital products and services. This restructuring program is estimated to bring savings of between $1.6 billion and $1.8 billion, and the company should fully benefit from these savings by the end of 2007.
- Since the company has shifted its strategic outlook from traditional film products to a digital business model, digital earnings grew to $271 million, a 92.2% increase year over year.
- Eastman Kodak is not picture-perfect to our Motley Fool CAPS community, with the company only receiving a one-star rating.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q4 2006 |
Q4 2005 |
Change |
|
|---|---|---|---|
|
Sales |
$3,821 |
$4,197 |
(9.0%) |
|
Earnings from Continued Operations |
$17 |
($137) |
N/A |
|
EPS from Continued Operations |
$0.06 |
($0.48) |
N/A |
|
Diluted Shares |
287.5 |
287.2 |
0.1% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q4 2006 |
Q4 2005 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
26.4% |
23.0% |
3.3 |
|
Operating Margin |
5.8% |
(4.1%) |
9.9 |
|
Net Margin |
0.4% |
(3.3%) |
3.7 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$1,469 |
$1,665 |
(11.8%) |
|
Accounts Rec. |
$2,669 |
$2,760 |
(3.3%) |
|
Inventory |
$1,202 |
$1,455 |
(17.4%) |
|
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Accounts Payable* |
$4,144 |
$4,187 |
(1.0%) |
|
Long-Term Debt |
$2,714 |
$2,764 |
(1.8%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
FY 2006 |
FY 2005 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$956 |
$1,208 |
(20.9%) |
|
Capital Expenditures |
$379 |
$472 |
(19.7%) |
|
Free Cash Flow |
$577 |
$736 |
(21.6%) |
Find out why Fools always follow the money.
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