Kodak announces second quarter net earnings, upcoming sale of Flexographic Packaging Div.
Rochester, N.Y. – Kodak has announced it has begun the process to sell the company’s Flexographic Packaging Division.
The company made the announcement in tandem with the release of its Second Quarter Net Earnings Report.
The proceeds from the sale of the FPD, which is responsible for producing and marketing the company’s FLEXCEL NX system, will be used to repay outstanding debts.
Kodak says it will continue to make investments in FPD during the sale process.
As for its quarterly results, Kodak reported net earnings of $4 million, revenues of $372 million and a cash balance of $275 million.
Revenues for the second quarter were down approximately $9 million from Q2 2017, while second quarter Operational EBITDA was down $3 million from a year ago. The company said a primary factor was a, “$7 million year-over-year adverse impact of aluminum.”
The company also reports it has entered a non-binding letter of intent for an 18-month, $400 million loan to ease debt.
In a statement, CEO Jeff Clarke said, ““We continue to see growth in our SONORA plates, FLEXCEL NX and PROSPER annuities businesses. When adjusted for aluminum and foreign exchange, Operational EBITDA increased thirty three percent year over year.”
Kodak has retained UBS Investment Bank to advise the company during the sale of FPD.