Kodak’s Phase Out Strategy Arrives

According to an announcement by the Eastman Kodak Company (NYSE:EK), its dedicated capture devices business comprising digital cameras, pocket video cameras and digital picture frames, will be phased out in the first half of 2012. This is a result of its ongoing strategic review process and commitment to drive sustainable profitability through more valuable business lines – this could include expansion of its brand licensing program.

“For some time, Kodak’s strategy has been to improve margins in the capture device business by narrowing our participation in terms of product portfolio, geographies and retail outlets. Today’s announcement is the logical extension of that process, given our analysis of the industry trends,” said Kodak President, Consumer Businesses and Chief Marketing Officer Pradeep Jotwani.

The phase out will result in annual operating savings of more than $100 million, while charges relating to separation benefits could amount to $30 million.

Kodak will continue to operate consumer businesses such as retail-based photo kiosks and digital dry labs, inkjet printers, apps for Facebook, a digital photo service called Kodak Gallery, camera accessories and batteries and film capture and photographic paper. In its commercial segment, it will be present in digital and functional printing, enterprise services and graphics, entertainment and commercial films businesses.

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