Kodak 2002 Annual Report Download - page 5

Chairman’s Letter
5
Commercial Imaging Group
Organizational realignment around strategic product groups during 2002 helped this business,
which serves commercial and government customers, achieve operational efficiencies and
identify profitable business opportunities. Overall sales for 2002 were flat. Sales to government
customers continued to grow, and introduction of a new Innovation Series scanner for low-
volume document scanning reinforced Kodak product leadership in the overall market. The Kodak
i260 scanner was named a Product of the Year by Transform magazine.
The NexPress 2100 printer received solid acceptance during its first year on the market
despite a tough year for the printing and publishing industry. Orders were taken for more than
200 printers. The new printer is a product of a joint venture between Kodak and Heidelberg. It
stands alone in the color printing market for digital variable on-demand production equipment,
and has potential for professional laboratory markets.
Display Group
This new business group was organized during the fourth quarter to guide our expanding role in
OLED image display, which has been estimated to grow to a $2.3 billion market by 2008. The
group encompasses the display products business, Kodak’s participation in the SK Display joint
venture, large-size flat-panel display initiatives and new display businesses emerging from the
research laboratories. Establishing the group strengthens our drive to generate several hundred
million dollars in OLED sales over the next few years, and will accelerate commercialization of
other new display-related technologies that are part of our broader strategy to win new business
in new markets. Display Group financial results are included in the “All Other” category.
OUTLOOK
There are few signs at this time of an upturn in the economy, and we expect 2003 to be
another very challenging year. We will continue to face many of the same marketplace
challenges experienced in 2002, including heightened geopolitical tensions. We believe our
strategic market focus — and our unyielding commitment to cost management — positions us well
in the current business environment. We will concentrate on those aspects of our business that
we can control: cash management, cost consciousness and superior performance in all phases of
the Kodak enterprise. We are committed to flawless execution across all business and functional
organizations to drive even better returns on our investments.
Success today — as well as for the longer term —
is predicated on innovation, operational excellence and a
sharp customer focus. We will maximize the use of our
R&D investment to deliver imaging products and services
that delight our customers. We will build on the Kodak
legacy of productive manufacturing, effective marketing
and global product distribution to enhance our competitive
position in all of our markets. Finally, our focus on
continuing to strengthen the balance sheet, combined with
astute execution of plans and strategies, will deliver value
for our customers and our owners.
I’d like to thank all members of the Kodak family,
including our employees and our customers, for making
2002 a year of significant accomplishment in the face of
continuing challenge. A strong, globally diverse
management team supported by dedicated employees kept
us on the path forward. An active, involved Board of
Directors provided conscientious oversight for our
business. We also owe thanks to those communities around
the world in which we operate. And especially to you —
our shareholders — we are grateful for your investment in
Kodak’s proud present and bright future.
. . . And especially to you—
our shareholders—
we are grateful for your
investment in Kodak’s proud
present and bright future.
. . . few signs at this time of
an upturn in the economy,
and we expect 2003 to
be another very
challenging year.
. . . double-digit
growth for thermal
print media in 2002.
”
Daniel A. Carp
Chairman & Chief Executive Officer,
President & Chief Operating Officer