posted 01-15-2004 02:34 AM                       

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Kodak's cheap cameras helped popularise photography
Photography giant Eastman Kodak has announced plans to stop selling traditional film cameras in North America and Europe.
The firm said it would concentrate instead on digital models.

The move marks a milestone in the history of Kodak, which brought photography to the masses through a cheap, easy-to-use film cameras.

It reflects a recent surge in demand for filmless digital cameras, which now outsell traditional models.

Industry figures show that 12.5 million digital cameras were sold in the US last year, compared with 12.1 million film cameras.

Kodak said it would continue selling its range of popular disposable cameras, as well as film and other accessories in North America and Europe.

Changing times

It will also continue to sell traditional cameras in Asia, Latin America, and Eastern Europe.

The decision is in line with the firm's strategy of moving away from traditional products in favour of high-growth digital technologies.

Bernard Mason, the head of Kodak's digital and film imaging division, said the firm remained "committed to manufacturing and marketing the world's highest quality film."

"We will focus our film investments on opportunities that provide faster and attractive returns, while reducing investments were we see unsatisfactory returns."

Last year, Kodak controversially slashed its payout to shareholders in an effort to raise $3bn needed to expand its presence in the market for digital cameras and imaging technologies.

The change in strategy prompted warnings from analysts that the company may struggle to catch up with rivals such as Canon, Dell and Hewlett Packard, which made the switch to digital products sooner.

But Wall Street investors welcomed the latest news, market Kodak shares 1.3% higher at $26.70 in mid-morning trade in New York on Tuesday.

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posted 01-22-2004 06:10 AM                       

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Kodak cuts 15,000 jobs worldwide

Kodak put the job cuts down to "market realities"
Photography giant Eastman Kodak is to slash up to 15,000 jobs worldwide over the next three years.
The news comes after the US firm announced a sharp fall in profits for the last three months of 2003.

Kodak said the job cuts - which represent around 20% of its global workforce - would save the company up to $1bn (£546m) a year by 2007.

The firm said last week that it would stop selling traditional film cameras in the US, Canada and Western Europe.

It plans to cut product lines with declining appeal in favour of fast-growing digital products.

'Absolutely required'

The latest staff cuts come on top of 6,000 job losses announced by the firm last year.

Kodak said it would also take $1.3bn to $1.7bn in charges over the next three years, as it moves to reposition itself to keep pace with the development of digital products.

Antonio Perez, the company's president and chief operating officer, said the job cuts were "absolutely required for Kodak to succeed in traditional markets as well as the digital markets to which our businesses are rapidly shifting".

The cuts were "the consequence of market realities" and would help fund future growth, he said.

New York-based Kodak reported fourth quarter net profits of $19m, compared with $113m for the same period in 2002.

However, the firm said sales in the quarter totalled $3.78bn, up 10% from a year ago.

Separately, Kodak said it would launch a $35m offer to buy the remaining shares of Japanese digital camera supplier Chinon Industries which it does not already own.

Kodak said the move would enable it to increase its global design and manufacturing capability for consumer digital cameras and accessories.

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Hope you're not one of the one-in-five John!

posted 01-22-2004 08:09 AM                       

I'm still here!

Actually, Kodak's Entertainment Imaging (Motion Picture division) has been doing very well, with record FILM sales last year, and a fast-growing DIGITAL, HYBRID, and SERVICES business (e.g., CineSite, FPC, ProTek, Kodak Digital Cinema, Laser Pacific). Most of the motion-picture film is made in Rochester, with some also being made in Windsor, Colorado, and Chalon-sur-Saone, France. Additional new VISION2 films are being developed, with several new films being announced soon.

http://www.kodak.com/US/en/motion/ei/eiToday.shtml?id=0.1.4.3&lc=en

Here are some links to information about today's announcement:

http://www.kodak.com/cgi-bin/US/en/corp/pressCenter/headlines.cgi

http://www.kodak.com/US/en/corp/pressReleases/pr20040122-02.shtml

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"Make no mistake we remain committed to film and printed output, which are, and will continue to be, great businesses," Carp said. "We will continue to invest appropriately in these media for consumers, cinematographers, professional photographers, the health-care industry and others. We will enter new markets with film and other media, and introduce new products consistent with market demand. We will be the industry's most competitive participant in traditional products and services."

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posted 01-22-2004 01:42 PM                       

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January 22, 2004

Dear Kodak motion picture customer:

This week you may have heard some updates on Kodak's new business strategy, as well as plans to lower our cost structure.

The structural changes announced are not a reaction to temporary earnings or business pressures. In the consumer world, the digital reality is now, and Kodak has no choice but to adapt to the digital model, which is characterized by faster growth, tighter profit margins, aggressive pricing and swift product turnover.

Please do not interpret this as Kodak 'abandoning' film.

Refocusing our R&D investments applies primarily to our consumer and medical imaging businesses, where the demand for digital imaging products and services is growing rapidly. Reducing costs in these areas also allows for Entertainment Imaging to continue its efforts to deliver the best film products - and best value possible to our motion picture customers.

Entertainment is still a film business, and film will remain an important part of the imaging chain into the foreseeable future. The success of our VISION2 product proves motion picture film's continued viability in the marketplace, and justifies future investment in silver halide. Nothing approaches film for its quality, resolution, dynamic range, flexibility and archivability.

At the same time, EI is expanding its digital participation, and we are making selective and strategically important investments to do that. One such investment is the acquisition of postproduction company Laser Pacific. This broadens our participation in the TV post arena, and brings exciting new digital/hybrid competencies to Kodak.

We believe that, in our industry, digital solutions make the most sense in the post production arena…so that's where you'll see the majority of our digital participation in the short term. And this includes our silver halide investments, which are incorporating a full systems approach for more flexibility in post.

We're working hard to supply you with the technology for what we foresee as a film/digital hybrid world. As such, within Entertainment Imaging, Kodak’s commitment to and investment in film continues. In fact, we continue to dedicate over 70% of our motion picture R&D budget to film technology. Additional announcements later in the year will attest to that fact.

Know that we remain passionate about film building. We are committed to all our customers in the creative community and to developing a full range of tools and services to help bring your vision to the screen, more faithfully, efficiently, and at the highest levels of quality.

Sincerely,

Eric Rodli

Eric Rodli,
President Entertainment Imaging
Senior Vice President Eastman Kodak

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posted 01-23-2004 07:54 AM                      

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Please do not interpret this as Kodak 'abandoning' film.

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Pay no attention to that man behind the curtain!

posted 01-23-2004 09:21 AM                       

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Gee I hope none of the diversity programs get cut

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Cynic!

Guess what? The vast majority of the people in the world who buy consumer FILM are NOT White Anglo-Saxon Protestants!

A WOMAN leads Kodak's VERY SUCCESSFUL motion picture film development programs, with many women and other minorities serving on the development teams. A WOMAN (Annabel Muenter) invented a key technology that helps make VISION2 Color Negative film so low in grain:

Kodak Two-Electron Sensitization

Many other examples: A person from China helped eliminate "static cling" on polyester print film, a person from India developed Kodak's "Molecular Sieves" to slow vinegar syndrome, another Nobel-prize winning chemist from India leads the group that develops many of the dyes used in film, an Iranian immigrant is developing key technology for Digital Cinema...etc.

IMHO, Kodak's diversity has helped meet the challenges in this world-wide multi-cultural market.

Bigotry leads nowhere.

Find something else to HATE or to blame your problems on. I'm sure you have quite a list.