Kodak Australia imaging division still buoyant despite worldwide profits nosedive
Kodak Australia imaging division still buoyant despite worldwide profits nosedive
The outlook for Kodak's commercial imaging division in Australia still looks bright, despite the company announcing a massive drop in worldwide profits.
That's according to Paul Whittard, general manager of Kodak Australia's document imaging division.
Speaking in the wake of the publication of Kodak's Q1 results, which revealed a massive drop in profits of 69 per cent for the January-March period compared to the same period a year ago, Whittard said that while it was not company policy to publish or comment on the financial results of individual business units within Kodak, he stressed the worldwide figures published did not reflect how the Australian imaging division was performing.
"The commercial imaging division is really tied more closely to business activity and spending on IT. The Australian market is quite strong this year, and the outlook in commercial imaging in Australia in the coming year is very upbeat."
The company as a whole has seen its profits steadily shrink over a 2 1/2 year period, largely due to the decline in film sales, partly as a consequence of the surge in popularity and affordability of digital cameras.
It earned US$12 million, or 4 cents a share, in the first quarter of 2003, down from $39 million, or 13 cents a share, in the corresponding quarter in 2002.
Kodak warned that profits would likely continue to tumble in the second quarter and remain in the doldrums throughout the year, with no prospect of a global economic recovery in sight.
The figures matched Wall Street's forecasts but did not prevent Kodak stock falling by 7 per cent.
Kodak chief executive, Dan Carp cited the decline in leisure travel as a result of the war in Iraq and fears of terrorist attacks as factors in the disappointing results.
"In my 33 years of business, I cannot think of a time with a greater level of business uncertainty with more unusual events at work," he announced in a conference call with analysts.
Carp also said the SARS virus outbreak "had limited impact in the first quarter but its impact could potentially be more significant in the second quarter."
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