Eastman Kodak Company (NYSE: EK) is a multinational US corporation which produces imaging and photographic materials and equipment. Long known for its wide range of photographic film products, Kodak is re-focusing[3] on two major markets: digital photography and digital printing.
Eastman Kodak Company (Kodak), incorporated in 1901, is engaged in the sale of imaging products, technology, solutions and services to consumers, businesses and professionals. Kodak operates in three segments: Consumer Digital Imaging Group (CDG), Graphic Communications Group (GCG) and Film, Photofinishing and Entertainment Group (FPEG). The Company’s products span digital still and video cameras and related accessories; consumer inkjet printers and media; digital picture frames; retail printing kiosks, APEX drylab systems and related media and services, and KODAK Gallery online imaging services. Kodak’s products also include prepress equipment and consumables; imaging sensors; workflow software and services; electro-photographic printing equipment, consumables and service; commercial inkjet printing equipment, consumables and service; document scanners; origination and print films and special effects services for the entertainment industry; consumer and professional photographic film, and photographic paper and processing chemicals. In March 2011, the Company acquired Tokyo Ohka Kogyo Co., Ltd.
Consumer Digital Imaging Group
The Company’s Digital Capture and Devices include digital still and pocket video cameras, digital picture frames, accessories and branded-licensed products. These products are sold directly to retailers or distributors, and are also available to customers, through KODAK Store and other online providers. Digital Capture and Devices also includes charged coupled devices (CCD) imaging sensors and licensing activities related to the Company’s intellectual property in digital imaging products. Retail Systems Solutions’ product and service offerings to retailers include kiosks and consumables, Adaptive Picture Exchange (APEX) drylab systems and consumables, and after sale service and support. Consumers can create a range of photo gifts, including photo books, personal greeting cards, prints, posters and collages.
Kodak’s Consumer Inkjet Systems encompasses Kodak All-in-One desktop inkjet printers, ink cartridges, and media. Its Consumer Inkjet Systems products are sold directly to retailers or distributors, as well as through and other online providers. During the year ended December 31, 2010, the Company launched a platform of printers. Its Kodak Gallery is an online merchandise and photo sharing service. The Website provides consumers to view, store and share their images with friends and family, and to receive Kodak prints and other products from their pictures, such as photo books, frames, calendars and other personalized merchandise. Kodak also distributes KODAK EasyShare desktop software to consumers. Operations of the CDG segment are located in Rochester, New York; Atlanta, Georgia; Emeryville, California; San Diego, California; China, and Singapore.
Graphic Communications Group
Kodak’s Prepress Solutions consists of digital and consumables, including plates, chemistry, media, prepress output device equipment and related services, and proofing solutions. Prepress Solutions also include flexographic packaging solutions. Products within Prepress Solutions include TRILLIAN SP plates, launched during 2010, and FLEXCEL NX packaging systems. Digital Printing Solutions includes commercial inkjet printing equipment, consumables and related services, as well as color and black-and-white electrophotographic printing equipment, consumables and related services. Product offerings include PROSPER color and black-and-white presses, components and systems. The Business Services and Solutions group’s product and service offerings consists of production and workgroup document scanners, related services and digital controllers for driving digital output devices and workflow software and solutions. Products in the GCG segment are manufactured in the United States, primarily in Rochester, New York; Dayton, Ohio; Columbus, Georgia, and Weatherford, Oklahoma.
Film, Photofinishing and Entertainment Group
FPEG provides consumers, professionals and the entertainment industry with film and paper for imaging and photography. Entertaining Imaging includes origination, intermediate and color print motion picture films, special effects services and other digital products and services for the entertainment industry. Traditional Photofinishing includes color negative photographic paper, photochemicals, professional output systems and event imaging services. Industrial Materials encompasses aerial and industrial film products, film for the production of printed circuit boards, and specialty chemicals. Film Capture includes consumer and professional photographic film and one-time-use cameras. The FPEG segment of Kodak’s business is centered in Rochester, New York, where film and photographic chemicals and related materials are manufactured. In addition, manufacturing facilities supporting the business are located in Windsor, Colorado; China; Mexico; India; Brazil, and Russia.
Fisher almost immediately moved to refocus the company on its imaging core. Fisher and a newly installed top financial team went ahead with the spinoff to shareholders of Eastman Chemical at year-end 1993; this divestment had already been in the works under Whitmore. The following year, Kodak sold Sterling Winthrop to SmithKline Beecham plc for $4.6 billion, its diagnostics products division to Johnson & Johnson for $1 billion, and several other nonimaging units for about another $2.4 billion. These businesses had together accounted for $7.4 billion in revenues in 1993 but only $46 million in pretax profit. The asset sales reduced the debt load to a manageable $1.5 billion and returned the company to its roots.
Next, Fisher moved to transform Kodak into a digital company for the 21st century. Rather than viewing the digital future as a threat to the chemical photography past, Fisher saw digital photography as a great opportunity to revitalize Kodak's core, as he related to Forbes in early 1997: 'I think there was a fear of what digital was all about, whereas I was coming here because I believed digital imaging and the core photography business had a symbiotic relationship, which was, in fact, exciting.' During 1994 Fisher created a new division called Digital and Applied Imaging, and hired Carl Gustin, a marketing executive who had previously worked at Digital Equipment Corporation and Apple Computer, Inc., as its head. Among the early developments of the new division was the 1995 relaunch of the Kodak Photo CD with a new design aimed at desktop personal computer users and the introduction that year of a full-featured digital camera priced at less than $1,000.
Back on the chemical photography front, Kodak under Fisher's leadership took a more aggressive approach to trade disputes with its archrival Fuji Photo Film. In 1995 Kodak accused the Japanese government and Fuji of illegally restricting access to the Japanese market for film and photographic paper. The U.S. government took the case to the newly formed World Trade Organization (WTO) in 1996, with the European Union soon joining the Kodak side. Fuji contended that Kodak's policies in pricing and marketing its products in Japan were to blame for the company's low market share, and that Kodak faced an environment in Japan similar to what Fuji faced in the United States. In fact, both companies held about 70 percent of their respective home markets, while Kodak held about 12 percent of the Japanese market and Fuji still only ten percent of the U.S. market. In 1997 the WTO rejected Kodak's claims, ruling in Fuji's favor.
Ironically in the midst of this legal battle, a Kodak-led consortium that included Fuji (as well as Canon Inc., Minolta Co., Ltd., and Nikon Corporation) developed the Advanced Photo System (APS), an effort to revitalize the stagnant still photography market. APS, which was a hybrid between conventional and digital photography technology, offered drop-in film loading and the ability to select from three photo sizes (four by six-inch, four by seven-inch, and a panoramic four by ten-inch) as photos were taken. In February 1996 Kodak unveiled the Advantix brand, which it used for its APS film, cameras, and related equipment and services. APS proved to be an instant success, and Kodak quickly captured 85 percent of the U.S. market for APS film.
In December 1996 Daniel A. Carp was named president and chief operating officer of Eastman Kodak. One month later Kodak completed the sale to Danka Business Systems PLC of its loss-making imaging services unit, which sold and serviced copiers and provided document management services. Later in 1997 Kodak acquired Wang Laboratories' software business unit, which focused on imaging and work management software. The following year Kodak beefed up its health imaging division through the $530 million purchase of the bulk of Imation Corporation's medical imaging business, including the DryView laser imaging system. Divestments in 1998 included the Fox Photo, Inc. photofinishing chain, which was sold to Wolf Camera. Also in 1998 the company introduced the Kodak Picture Maker, a digital imaging kiosk through which consumers could manipulate, enlarge, and/or crop and then reprint an existing photograph.
Despite all of Fisher's maneuvering, Kodak was still vulnerable. In the summer of 1997 the seeming turnaround turned sour when Fuji Photo initiated a brutal price war in the U.S. market at the same time that a strong U.S. dollar and the emerging Asian economic crisis wreaked additional havoc overseas. The nascent digital division, for all its innovative new products, was on its way to losing $440 million for the year. In late 1997 Fisher announced a major restructuring, involving a workforce reduction of 20,000, a shakeup of top management, and a goal to cut more than $1 billion from annual costs. After having nearly all of its profits wiped out by a $1.46 billion restructuring charge in 1997, Kodak returned to post net income of $1.39 billion in both 1998 and 1999, on revenues of $13.41 billion and $14.09 billion, respectively.
During 1999 Kodak continued its drive to divest underperforming units through the sale of its office imaging unit--which included digital printers, copiers, and roller assemblies&mdashø Heidelberger Druckmaschinen AG of Germany. In January 2000 Fisher stepped down as CEO, remaining chairman until the end of that year; Carp was named his successor. Although Kodak had managed to make a profit of $20 million from its digital businesses in 1999, it was far from clear whether Kodak would be a major player in the digital world of the new millennium. For his part, Carp announced in mid-2000 that the company expected 45 percent of revenue to be generated from digital imaging in 2005, which would be a huge increase from the 17 percent of 1999. Eastman Kodak's progress toward this predicted level, or lack thereof, was likely to be highly indicative of the overall direction of the company in the early 21st century.
Principal Subsidiaries: Eastman Kodak International Sales Corporation (Barbados); Torrey Pines Realty Company, Inc.; Cinesite, Inc.; FPC Inc.; Qualex Inc.; Qualex Canada Photofinishing Inc.; Eastman Software Inc.; PictureVision Inc.; Eastman Gelatine Corporation; Eastman Canada Inc.; Kodak Canada Inc.; Kodak (Export Sales) Ltd. (Hong Kong); Kodak Argentina S.A.I.C.; Kodak Chilena S.A.F. (Chile); Kodak Caceo Ltd.; Kodak Panama, Ltd.; Kodak Americas, Ltd.; Kodak Venezuela, S.A.; Kodak (Near East), Inc.; Kodak (Singapore) Pte. Limited; Kodak Philippines, Ltd.; Kodak Limited (U.K.); Cinesite (Europe) Limited (U.K.); Kodak India Limited; Kodak International Finance Ltd. (U.K.); Kodak Polska Sp.zo.o (Poland); Kodak AO (Russia); Kodak (Ireland) Manufacturing Limited; Kodak Ireland Limited; Kodak-Pathe SA (France); Kodak A.G. (Germany); E.K. Holdings, B.V. (Netherlands); Kodak Brasileira C.I.L. (Brazil); Kodak Korea Limited; Kodak Far East Purchasing, Inc.; Kodak New Zealand Limited; Kodak (Australasia) Pty. Ltd. (Australia); Kodak (Kenya) Limited; Kodak (Egypt) S.A.E.; Kodak (Malaysia) S.B.; Kodak Taiwan Limited; Eastman Kodak International Capital Company, Inc.; Kodak de Mexico S.A. de C.V.; Kodak Export de Mexico, S. de R.L. de C.V.; Kodak Mexicana S.A. de C.V. (Mexico); N.V. Kodak S.A. (Belgium); Kodak a.s. (Denmark); Kodak Norge A/S (Norway); Kodak SA (Switzerland); Kodak (Far East) Limited (Hong Kong); Kodak (Thailand) Limited; Kodak G.m.b.H. (Austria); Kodak Kft. (Hungary); Kodak Oy (Finland); Kodak Nederland B.V. (Netherlands); Kodak S.p.A. (Italy); Kodak Portuguesa Limited; Kodak S.A. (Spain); Kodak AB (Sweden); Eastman Kodak (Japan) Ltd.; Kodak Japan Ltd.; Kodak Imagex K.K. (Japan); K.K. Kodak Information Systems (Japan); Kodak Japan Industries Ltd.; Kodak (China) Limited (Hong Kong); Kodak Electronic Products (Shanghai) Co., Ltd. (China); BASO Precision Optics, Ltd. (Taiwan); K.H. Optical Company Limited (Hong Kong); Kodak Photographic Equipment (Shanghai) Co., Ltd. (China); Kodak (China) Co. Ltd.; Kodak (WUXI) Co. Ltd. (China).
Principal Operating Units: Document Imaging; Eastman Software; Consumer Imaging; Commercial and Government Systems; Global Customer Service and Support; Digital and Applied Imaging; Health Imaging; Entertainment Imaging; KODAK Professional.
Principal Competitors: Agfa-Gevaert Group; Canon Inc.; Casio Computer Co., Ltd.; Fuji Photo Film Co., Ltd.; Hewlett-Packard Company; Leica Camera AG; Matsushita Electric Industrial Co., Ltd.; Minnesota Mining and Manufacturing Company; Minolta Co., Ltd.; Nikon Corporation; Olympus Optical Co., Ltd.; Koninklijke Philips Electronics N.V.; PhotoWorks, Inc.; Polaroid Corporation; Ricoh Company, Ltd.; Sharp Corporation; Sony Corporation; Xerox Corporation.
OVERALL
Beta: 1.44
Market Cap (Mil.): $774.83
Shares Outstanding (Mil.): 269.04
Annual Dividend: --
Yield (%): --
FINANCIALS
EK Industry Sector
P/E (TTM): -- 37.08 9.11
EPS (TTM): -717.40 -- --
ROI: -25.23 1.99 0.93
ROE: -- 2.57 1.62
Statistics:
Public Company
Incorporated: 1901
Employees: 80,650
Sales: $14.09 billion (1999)
Stock Exchanges: New York Pacific Boston Cincinnati Detroit Midwest Philadelphia
Ticker Symbol: EK
NAIC: 325992 Photographic Film, Paper, Plate, and Chemical Manufacturing; 333315 Photographic and Photocopying Equipment Manufacturing; 325411 Medicinal and Botanical Manufacturing; 325414 Biological Product (Except Diagnostic) Manufacturing; 334119 Other Computer Peripheral Equipment Manufacturing; 334510 Electromedical and Electrotherapeutic Apparatus Manufacturing; 511210 Software Publishers
Key Dates:
1880: George Eastman begins manufacturing dry plates for sale to photographers.
1881: Eastman and Henry A. Strong form partnership, Eastman Dry Plate Company.
1884: Company is reorganized as a corporation under the name Eastman Dry Plate and Film Company.
1888: Snapshot photography is born through the introduction of the Kodak portable camera.
1889: Name changes to Eastman Company.
1892: Name changes to Eastman Kodak Company of New York.
1898: The Folding Pocket Kodak Camera is introduced.
1900: The Brownie camera makes its debut.
1901: Company is reorganized and incorporated in New Jersey as Eastman Kodak Company.
1912: One of the first U.S. industrial research centers is set up in Rochester, New York.
1920: Tennessee Eastman Company, forerunner of Eastman Chemical, is created.
1923: Company introduces motion picture camera, film, and projector for the consumer market.
1932: George Eastman commits suicide at the age of 77.
1935: Kodachrome film, the first commercially successful color film for amateurs, debuts.
1951: Low-priced Brownie eight-millimeter movie camera is introduced.
1953: Eastman Chemical Products, Inc. is created as a new subsidiary.
1961: Highly successful line of Kodak Carousel slide projectors is introduced.
1963: The revolutionary Instamatic camera makes its debut.
1965: Company introduces the super-eight format Instamatic movie camera.
1972: The pocket Instamatic camera is launched.
1975: Company enters the copier market with the debut of the Kodak Ektaprint 100 Copier-Duplicator.
1976: Kodak enters the market for instant cameras; Polaroid files patent-infringement suit against Kodak.
1980: Company expands its health imaging operations with the launch of the Ektachem 400 blood analyzer.
1982: Company launches 'disc photography,' an ultimately unsuccessful innovation.
1984: Lines of videotapes and floppy discs are introduced.
1985: Floppy disc maker Verbatim Corporation is acquired.
1986: A federal appeals court orders Kodak's exit from the instant camera market; a line of alkaline batteries under the Supralife brand is launched; Eastman Pharmaceuticals Division is established.
1988: Sterling Drug Inc., maker of prescription and OTC drugs, is acquired.
1990: Verbatim is sold to Mitsubishi Kasei Corporation.
1991: Polaroid's suit against Kodak is settled, with the latter paying the former $925 million.
1992: The Kodak Photo CD player hits the market.
1993: George Fisher becomes the first outsider to head the company; Eastman Chemical is spun off to shareholders.
1994: The company's pharmaceutical arm, Sterling Winthrop, its diagnostics products division, and several other nonimaging units are divested.
1997: The WTO rules against Kodak in its dispute with Fuji Photo Film over access to the Japanese market; major restructuring is initiated.
1998: Kodak Picture Maker debuts; company acquires the DryView laser imaging system from Imation.
1999: The office imaging unit is sold.
Name Age Since Current Position
Perez, Antonio 65 2007 Chairman of the Board, Chief Executive Officer
Faraci, Philip 55 2007 President, Chief Operating Officer
McCorvey, Antoinette 53 2010 Chief Financial Officer, Senior Vice President
Taber, Terry 56 2010 Senior Vice President, Chief Technology Officer
Jotwani, Pradeep 56 2010 President - Consumer Digital Imaging Group, Chief Marketing Officer, and Senior Vice President
Quatela, Laura 53 2011 Senior Vice President, Chief Intellectual Property Officer, General Counsel
Berman, Robert 53 2005 Senior Vice President
Kruchten, Brad 50 2009 Senior Vice President; President of Film, Photofinishing and Entertainment Group
Samuels, Eric 43 2009 Chief Accounting Officer, Corporate Controller
Oviedo, Gustavo 58 2011 Chief Customer Officer and General Manager - Worldwide Regional Operations
Braddock, Richard 69 1987 Independent Director
Lewis, Delano 72 2001 Independent Director
Tyson, Laura 63 1997 Independent Director
Lee, Debra 56 1999 Independent Director
Donahue, Timothy 62 2001 Independent Director
Hernandez, William 63 2003 Independent Director
Hawley, Michael 49 2004 Independent Director
Lebda, Douglas 41 2007 Independent Director
Parrett, William 65 2007 Independent Director
Strigl, Dennis 64 2008 Independent Director
Seligman, Joel 61 2009 Independent Director
Clammer, Adam 41 2009 Independent Director
Chen, Herald 41 2009 Independent Director
Legg, Kyle 59 2010 Independent Director
Address:
343 State Street
Rochester, New York 14650
U.S.A.
Eastman Kodak Company (Kodak), incorporated in 1901, is engaged in the sale of imaging products, technology, solutions and services to consumers, businesses and professionals. Kodak operates in three segments: Consumer Digital Imaging Group (CDG), Graphic Communications Group (GCG) and Film, Photofinishing and Entertainment Group (FPEG). The Company’s products span digital still and video cameras and related accessories; consumer inkjet printers and media; digital picture frames; retail printing kiosks, APEX drylab systems and related media and services, and KODAK Gallery online imaging services. Kodak’s products also include prepress equipment and consumables; imaging sensors; workflow software and services; electro-photographic printing equipment, consumables and service; commercial inkjet printing equipment, consumables and service; document scanners; origination and print films and special effects services for the entertainment industry; consumer and professional photographic film, and photographic paper and processing chemicals. In March 2011, the Company acquired Tokyo Ohka Kogyo Co., Ltd.
Consumer Digital Imaging Group
The Company’s Digital Capture and Devices include digital still and pocket video cameras, digital picture frames, accessories and branded-licensed products. These products are sold directly to retailers or distributors, and are also available to customers, through KODAK Store and other online providers. Digital Capture and Devices also includes charged coupled devices (CCD) imaging sensors and licensing activities related to the Company’s intellectual property in digital imaging products. Retail Systems Solutions’ product and service offerings to retailers include kiosks and consumables, Adaptive Picture Exchange (APEX) drylab systems and consumables, and after sale service and support. Consumers can create a range of photo gifts, including photo books, personal greeting cards, prints, posters and collages.
Kodak’s Consumer Inkjet Systems encompasses Kodak All-in-One desktop inkjet printers, ink cartridges, and media. Its Consumer Inkjet Systems products are sold directly to retailers or distributors, as well as through and other online providers. During the year ended December 31, 2010, the Company launched a platform of printers. Its Kodak Gallery is an online merchandise and photo sharing service. The Website provides consumers to view, store and share their images with friends and family, and to receive Kodak prints and other products from their pictures, such as photo books, frames, calendars and other personalized merchandise. Kodak also distributes KODAK EasyShare desktop software to consumers. Operations of the CDG segment are located in Rochester, New York; Atlanta, Georgia; Emeryville, California; San Diego, California; China, and Singapore.
Graphic Communications Group
Kodak’s Prepress Solutions consists of digital and consumables, including plates, chemistry, media, prepress output device equipment and related services, and proofing solutions. Prepress Solutions also include flexographic packaging solutions. Products within Prepress Solutions include TRILLIAN SP plates, launched during 2010, and FLEXCEL NX packaging systems. Digital Printing Solutions includes commercial inkjet printing equipment, consumables and related services, as well as color and black-and-white electrophotographic printing equipment, consumables and related services. Product offerings include PROSPER color and black-and-white presses, components and systems. The Business Services and Solutions group’s product and service offerings consists of production and workgroup document scanners, related services and digital controllers for driving digital output devices and workflow software and solutions. Products in the GCG segment are manufactured in the United States, primarily in Rochester, New York; Dayton, Ohio; Columbus, Georgia, and Weatherford, Oklahoma.
Film, Photofinishing and Entertainment Group
FPEG provides consumers, professionals and the entertainment industry with film and paper for imaging and photography. Entertaining Imaging includes origination, intermediate and color print motion picture films, special effects services and other digital products and services for the entertainment industry. Traditional Photofinishing includes color negative photographic paper, photochemicals, professional output systems and event imaging services. Industrial Materials encompasses aerial and industrial film products, film for the production of printed circuit boards, and specialty chemicals. Film Capture includes consumer and professional photographic film and one-time-use cameras. The FPEG segment of Kodak’s business is centered in Rochester, New York, where film and photographic chemicals and related materials are manufactured. In addition, manufacturing facilities supporting the business are located in Windsor, Colorado; China; Mexico; India; Brazil, and Russia.
Fisher almost immediately moved to refocus the company on its imaging core. Fisher and a newly installed top financial team went ahead with the spinoff to shareholders of Eastman Chemical at year-end 1993; this divestment had already been in the works under Whitmore. The following year, Kodak sold Sterling Winthrop to SmithKline Beecham plc for $4.6 billion, its diagnostics products division to Johnson & Johnson for $1 billion, and several other nonimaging units for about another $2.4 billion. These businesses had together accounted for $7.4 billion in revenues in 1993 but only $46 million in pretax profit. The asset sales reduced the debt load to a manageable $1.5 billion and returned the company to its roots.
Next, Fisher moved to transform Kodak into a digital company for the 21st century. Rather than viewing the digital future as a threat to the chemical photography past, Fisher saw digital photography as a great opportunity to revitalize Kodak's core, as he related to Forbes in early 1997: 'I think there was a fear of what digital was all about, whereas I was coming here because I believed digital imaging and the core photography business had a symbiotic relationship, which was, in fact, exciting.' During 1994 Fisher created a new division called Digital and Applied Imaging, and hired Carl Gustin, a marketing executive who had previously worked at Digital Equipment Corporation and Apple Computer, Inc., as its head. Among the early developments of the new division was the 1995 relaunch of the Kodak Photo CD with a new design aimed at desktop personal computer users and the introduction that year of a full-featured digital camera priced at less than $1,000.
Back on the chemical photography front, Kodak under Fisher's leadership took a more aggressive approach to trade disputes with its archrival Fuji Photo Film. In 1995 Kodak accused the Japanese government and Fuji of illegally restricting access to the Japanese market for film and photographic paper. The U.S. government took the case to the newly formed World Trade Organization (WTO) in 1996, with the European Union soon joining the Kodak side. Fuji contended that Kodak's policies in pricing and marketing its products in Japan were to blame for the company's low market share, and that Kodak faced an environment in Japan similar to what Fuji faced in the United States. In fact, both companies held about 70 percent of their respective home markets, while Kodak held about 12 percent of the Japanese market and Fuji still only ten percent of the U.S. market. In 1997 the WTO rejected Kodak's claims, ruling in Fuji's favor.
Ironically in the midst of this legal battle, a Kodak-led consortium that included Fuji (as well as Canon Inc., Minolta Co., Ltd., and Nikon Corporation) developed the Advanced Photo System (APS), an effort to revitalize the stagnant still photography market. APS, which was a hybrid between conventional and digital photography technology, offered drop-in film loading and the ability to select from three photo sizes (four by six-inch, four by seven-inch, and a panoramic four by ten-inch) as photos were taken. In February 1996 Kodak unveiled the Advantix brand, which it used for its APS film, cameras, and related equipment and services. APS proved to be an instant success, and Kodak quickly captured 85 percent of the U.S. market for APS film.
In December 1996 Daniel A. Carp was named president and chief operating officer of Eastman Kodak. One month later Kodak completed the sale to Danka Business Systems PLC of its loss-making imaging services unit, which sold and serviced copiers and provided document management services. Later in 1997 Kodak acquired Wang Laboratories' software business unit, which focused on imaging and work management software. The following year Kodak beefed up its health imaging division through the $530 million purchase of the bulk of Imation Corporation's medical imaging business, including the DryView laser imaging system. Divestments in 1998 included the Fox Photo, Inc. photofinishing chain, which was sold to Wolf Camera. Also in 1998 the company introduced the Kodak Picture Maker, a digital imaging kiosk through which consumers could manipulate, enlarge, and/or crop and then reprint an existing photograph.
Despite all of Fisher's maneuvering, Kodak was still vulnerable. In the summer of 1997 the seeming turnaround turned sour when Fuji Photo initiated a brutal price war in the U.S. market at the same time that a strong U.S. dollar and the emerging Asian economic crisis wreaked additional havoc overseas. The nascent digital division, for all its innovative new products, was on its way to losing $440 million for the year. In late 1997 Fisher announced a major restructuring, involving a workforce reduction of 20,000, a shakeup of top management, and a goal to cut more than $1 billion from annual costs. After having nearly all of its profits wiped out by a $1.46 billion restructuring charge in 1997, Kodak returned to post net income of $1.39 billion in both 1998 and 1999, on revenues of $13.41 billion and $14.09 billion, respectively.
During 1999 Kodak continued its drive to divest underperforming units through the sale of its office imaging unit--which included digital printers, copiers, and roller assemblies&mdashø Heidelberger Druckmaschinen AG of Germany. In January 2000 Fisher stepped down as CEO, remaining chairman until the end of that year; Carp was named his successor. Although Kodak had managed to make a profit of $20 million from its digital businesses in 1999, it was far from clear whether Kodak would be a major player in the digital world of the new millennium. For his part, Carp announced in mid-2000 that the company expected 45 percent of revenue to be generated from digital imaging in 2005, which would be a huge increase from the 17 percent of 1999. Eastman Kodak's progress toward this predicted level, or lack thereof, was likely to be highly indicative of the overall direction of the company in the early 21st century.
Principal Subsidiaries: Eastman Kodak International Sales Corporation (Barbados); Torrey Pines Realty Company, Inc.; Cinesite, Inc.; FPC Inc.; Qualex Inc.; Qualex Canada Photofinishing Inc.; Eastman Software Inc.; PictureVision Inc.; Eastman Gelatine Corporation; Eastman Canada Inc.; Kodak Canada Inc.; Kodak (Export Sales) Ltd. (Hong Kong); Kodak Argentina S.A.I.C.; Kodak Chilena S.A.F. (Chile); Kodak Caceo Ltd.; Kodak Panama, Ltd.; Kodak Americas, Ltd.; Kodak Venezuela, S.A.; Kodak (Near East), Inc.; Kodak (Singapore) Pte. Limited; Kodak Philippines, Ltd.; Kodak Limited (U.K.); Cinesite (Europe) Limited (U.K.); Kodak India Limited; Kodak International Finance Ltd. (U.K.); Kodak Polska Sp.zo.o (Poland); Kodak AO (Russia); Kodak (Ireland) Manufacturing Limited; Kodak Ireland Limited; Kodak-Pathe SA (France); Kodak A.G. (Germany); E.K. Holdings, B.V. (Netherlands); Kodak Brasileira C.I.L. (Brazil); Kodak Korea Limited; Kodak Far East Purchasing, Inc.; Kodak New Zealand Limited; Kodak (Australasia) Pty. Ltd. (Australia); Kodak (Kenya) Limited; Kodak (Egypt) S.A.E.; Kodak (Malaysia) S.B.; Kodak Taiwan Limited; Eastman Kodak International Capital Company, Inc.; Kodak de Mexico S.A. de C.V.; Kodak Export de Mexico, S. de R.L. de C.V.; Kodak Mexicana S.A. de C.V. (Mexico); N.V. Kodak S.A. (Belgium); Kodak a.s. (Denmark); Kodak Norge A/S (Norway); Kodak SA (Switzerland); Kodak (Far East) Limited (Hong Kong); Kodak (Thailand) Limited; Kodak G.m.b.H. (Austria); Kodak Kft. (Hungary); Kodak Oy (Finland); Kodak Nederland B.V. (Netherlands); Kodak S.p.A. (Italy); Kodak Portuguesa Limited; Kodak S.A. (Spain); Kodak AB (Sweden); Eastman Kodak (Japan) Ltd.; Kodak Japan Ltd.; Kodak Imagex K.K. (Japan); K.K. Kodak Information Systems (Japan); Kodak Japan Industries Ltd.; Kodak (China) Limited (Hong Kong); Kodak Electronic Products (Shanghai) Co., Ltd. (China); BASO Precision Optics, Ltd. (Taiwan); K.H. Optical Company Limited (Hong Kong); Kodak Photographic Equipment (Shanghai) Co., Ltd. (China); Kodak (China) Co. Ltd.; Kodak (WUXI) Co. Ltd. (China).
Principal Operating Units: Document Imaging; Eastman Software; Consumer Imaging; Commercial and Government Systems; Global Customer Service and Support; Digital and Applied Imaging; Health Imaging; Entertainment Imaging; KODAK Professional.
Principal Competitors: Agfa-Gevaert Group; Canon Inc.; Casio Computer Co., Ltd.; Fuji Photo Film Co., Ltd.; Hewlett-Packard Company; Leica Camera AG; Matsushita Electric Industrial Co., Ltd.; Minnesota Mining and Manufacturing Company; Minolta Co., Ltd.; Nikon Corporation; Olympus Optical Co., Ltd.; Koninklijke Philips Electronics N.V.; PhotoWorks, Inc.; Polaroid Corporation; Ricoh Company, Ltd.; Sharp Corporation; Sony Corporation; Xerox Corporation.
OVERALL
Beta: 1.44
Market Cap (Mil.): $774.83
Shares Outstanding (Mil.): 269.04
Annual Dividend: --
Yield (%): --
FINANCIALS
EK Industry Sector
P/E (TTM): -- 37.08 9.11
EPS (TTM): -717.40 -- --
ROI: -25.23 1.99 0.93
ROE: -- 2.57 1.62
Statistics:
Public Company
Incorporated: 1901
Employees: 80,650
Sales: $14.09 billion (1999)
Stock Exchanges: New York Pacific Boston Cincinnati Detroit Midwest Philadelphia
Ticker Symbol: EK
NAIC: 325992 Photographic Film, Paper, Plate, and Chemical Manufacturing; 333315 Photographic and Photocopying Equipment Manufacturing; 325411 Medicinal and Botanical Manufacturing; 325414 Biological Product (Except Diagnostic) Manufacturing; 334119 Other Computer Peripheral Equipment Manufacturing; 334510 Electromedical and Electrotherapeutic Apparatus Manufacturing; 511210 Software Publishers
Key Dates:
1880: George Eastman begins manufacturing dry plates for sale to photographers.
1881: Eastman and Henry A. Strong form partnership, Eastman Dry Plate Company.
1884: Company is reorganized as a corporation under the name Eastman Dry Plate and Film Company.
1888: Snapshot photography is born through the introduction of the Kodak portable camera.
1889: Name changes to Eastman Company.
1892: Name changes to Eastman Kodak Company of New York.
1898: The Folding Pocket Kodak Camera is introduced.
1900: The Brownie camera makes its debut.
1901: Company is reorganized and incorporated in New Jersey as Eastman Kodak Company.
1912: One of the first U.S. industrial research centers is set up in Rochester, New York.
1920: Tennessee Eastman Company, forerunner of Eastman Chemical, is created.
1923: Company introduces motion picture camera, film, and projector for the consumer market.
1932: George Eastman commits suicide at the age of 77.
1935: Kodachrome film, the first commercially successful color film for amateurs, debuts.
1951: Low-priced Brownie eight-millimeter movie camera is introduced.
1953: Eastman Chemical Products, Inc. is created as a new subsidiary.
1961: Highly successful line of Kodak Carousel slide projectors is introduced.
1963: The revolutionary Instamatic camera makes its debut.
1965: Company introduces the super-eight format Instamatic movie camera.
1972: The pocket Instamatic camera is launched.
1975: Company enters the copier market with the debut of the Kodak Ektaprint 100 Copier-Duplicator.
1976: Kodak enters the market for instant cameras; Polaroid files patent-infringement suit against Kodak.
1980: Company expands its health imaging operations with the launch of the Ektachem 400 blood analyzer.
1982: Company launches 'disc photography,' an ultimately unsuccessful innovation.
1984: Lines of videotapes and floppy discs are introduced.
1985: Floppy disc maker Verbatim Corporation is acquired.
1986: A federal appeals court orders Kodak's exit from the instant camera market; a line of alkaline batteries under the Supralife brand is launched; Eastman Pharmaceuticals Division is established.
1988: Sterling Drug Inc., maker of prescription and OTC drugs, is acquired.
1990: Verbatim is sold to Mitsubishi Kasei Corporation.
1991: Polaroid's suit against Kodak is settled, with the latter paying the former $925 million.
1992: The Kodak Photo CD player hits the market.
1993: George Fisher becomes the first outsider to head the company; Eastman Chemical is spun off to shareholders.
1994: The company's pharmaceutical arm, Sterling Winthrop, its diagnostics products division, and several other nonimaging units are divested.
1997: The WTO rules against Kodak in its dispute with Fuji Photo Film over access to the Japanese market; major restructuring is initiated.
1998: Kodak Picture Maker debuts; company acquires the DryView laser imaging system from Imation.
1999: The office imaging unit is sold.
Name Age Since Current Position
Perez, Antonio 65 2007 Chairman of the Board, Chief Executive Officer
Faraci, Philip 55 2007 President, Chief Operating Officer
McCorvey, Antoinette 53 2010 Chief Financial Officer, Senior Vice President
Taber, Terry 56 2010 Senior Vice President, Chief Technology Officer
Jotwani, Pradeep 56 2010 President - Consumer Digital Imaging Group, Chief Marketing Officer, and Senior Vice President
Quatela, Laura 53 2011 Senior Vice President, Chief Intellectual Property Officer, General Counsel
Berman, Robert 53 2005 Senior Vice President
Kruchten, Brad 50 2009 Senior Vice President; President of Film, Photofinishing and Entertainment Group
Samuels, Eric 43 2009 Chief Accounting Officer, Corporate Controller
Oviedo, Gustavo 58 2011 Chief Customer Officer and General Manager - Worldwide Regional Operations
Braddock, Richard 69 1987 Independent Director
Lewis, Delano 72 2001 Independent Director
Tyson, Laura 63 1997 Independent Director
Lee, Debra 56 1999 Independent Director
Donahue, Timothy 62 2001 Independent Director
Hernandez, William 63 2003 Independent Director
Hawley, Michael 49 2004 Independent Director
Lebda, Douglas 41 2007 Independent Director
Parrett, William 65 2007 Independent Director
Strigl, Dennis 64 2008 Independent Director
Seligman, Joel 61 2009 Independent Director
Clammer, Adam 41 2009 Independent Director
Chen, Herald 41 2009 Independent Director
Legg, Kyle 59 2010 Independent Director
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