Business

Saturday February 25, 2012

Business as usual for Kodak

By LEONG HUNG YEE
hungyee@thestar.com.my


PETALING JAYA: Eastman Kodak's move to file for bankruptcy protection in the United States will not impact the operations of Kodak Asia-Pacific.

“Only the US subsidiaries are under Chapter 11 bankruptcy protection. It is business as usual in Asia for Kodak,” Evandro Matteucci, vice president, commercial and consumer business for Asia-Pacific, told StarBizWeek.

The Asian market represents a US$1bil business for the Kodak group which achieved net sales of US$7bil in 2010.

Matteucci says only Eastman Kodak’s US subsidiaries are under Chapter 11 bankruptcy protection. – Reuters

The growth in this region is strong and Mateucci is looking at “double-digit” growth this year, driven by strong demand for its imaging solutions as well as organic growth in its existing business.

“We have a solid footprint in Asia with six manufacturing plants, three research and centres and presence in 13 countries,” he said, adding that it did not need to reorganise its business in Asia, unlike the situation in the United States.

Kodak Asia-Pacific's main business in the region is divided into two main categories commercial and consumer.

Its consumer business includes production of films, papers and kiosks for the printing of pictures.

Its commercial segment provides imaging solution mainly to banks and financial institutions, publishers or newspaper companies.

Kodak Asia-Pacific's digital printing solutions business grew 40% year-on-year. A core business for Kodak Asia-Pacific, the digital printing solutions business has high potential in the region.

Last month, the 131-year-old company and its US subsidiaries filed voluntary petitions for Chapter 11 business reorganisation in the US Bankruptcy Court.

The reorganisation will enable Kodak to bolster liquidity in the United States and abroad, monetise non-strategic intellectual property, fairly resolve legacy liabilities and enable the company to focus on its most valuable business lines.

Most investors only caught on the word “bankrupt” but what Kodak was filing for was Chapter 11 and not Chapter 7, Mateucci said.

A Chapter 7 filing means the affected company must sell off its assets to pay creditors.

Eastman Kodak has also announced that the company would no longer manufacture digital cameras following its bankruptcy filing.

“The closing down has no impact on us and there shouldn't be any concern. Digital cameras contribute less than 3% to our revenue in Asia-Pacific. It is offset by the high growth in commercial printing,” Matteucci said.

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