Kodak to stop making cameras to cut costs
Eastman Kodak Co, the bankrupt inventor of the hand-held camera, plans to stop making digital cameras, pocket video cameras and digital picture frames in the first half of 2012 in a bid to cut costs.business Updated: Feb 09, 2012 20:15 IST
Eastman Kodak Co, the bankrupt inventor of the hand-held camera, plans to stop making digital cameras, pocket video cameras and digital picture frames in the first half of 2012 in a bid to cut costs.
The move marks the end of an era for Kodak, which is seen as one of the biggest corporate casualties of the digital age, after it failed to quickly embrace modern technologies such as digital photography, a product that it also invented.
The company, which filed for bankruptcy protection last month, said on Thursday that it will take a charge of about $30 million for the business exit, which it expects to generate annual operating savings of more than $100 million.
Kodak said the decision was the "logical extension" of the company's recent strategy of trying to improve margins in the camera business by narrowing its product portfolio, geographies and retail outlets.
The company, which generates three-quarters of its revenue from digital, now plans to instead focus on seeking licensees to expand its brand licensing program. It said it will continue to offer online and retail photo printing, and desktop printers.
In addition to its Consumer Businesses segment, Kodak has a commercial segment that includes enterprise services, graphics, entertainment and commercial films units.
The company's remaining consumer services will also include retail-based photo kiosks and dry lab systems. It said it has more than 100,000 kiosks and order stations for dry lab systems around the world.
It said it has contacted its retail partners, and is working closely with them to ensure an orderly transition for the camera business. The company promised to honor all related product warranties, and provide technical support and service for its cameras, pocket video cameras and digital picture frames.