Kodak 2009 Annual Report Download - page 40

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2008 COMPARED WITH 2007
Results of Operations – Continuing Operations
Consolidated
For the Year Ended
December 31,
(in millions) 2008
% of
Sales 2007
% of
Sales
Increase /
(Decrease)
%
Change
Net sales $ 9,416 $10,301 $ (885) -9%
Cost of goods sold 7,247 7,757 (510) -7%
Gross profit 2,169 23.0% 2,544 24.7% (375) -15%
Selling, general and administrative expenses 1,606 17% 1,802 17% (196) -11%
Research and development costs 478 5% 525 5% (47) -9%
Restructuring costs and other 140 543 (403) -74%
Other operating expenses (income), net 766 (96) 862 -898%
Loss from continuing operations before interest
expense, other income (charges), net and
income taxes (821) -9% (230) -2% (591) -257%
Interest expense 108 113 (5) -4%
Other income (charges), net 55 86 (31) -36%
Loss from continuing operations before income taxes (874) (257) (617) -240%
Benefit for income taxes (147) (51) (96) 188%
Loss from continuing operations (727) -8% (206) -2% (521) -253%
Earnings from discontinued operations, net of
income taxes 285 884 (599) -68%
NET (LOSS) EARNINGS (442) 678 (1,120)
Less: Net earnings attributable to noncontrolling
interests - (2) 2
NET (LOSS) EARNINGS ATTRIBUTABLE TO
EASTMAN KODAK COMPANY $ (442) $ 676 $ (1,118) -165%
For the Year Ended
December 31, Change vs. 2007
2008
Amount
Change vs.
2007 Volume Price/Mix
Foreign
Exchange
Manufacturing
and Other Costs
Total net sales $ 9,416 -8.6% -4.4% -6.4% 2.2% n/a
Gross profit margin 23.0% -1.7pp n/a -5.5pp 0.2pp 3.6pp
Revenues
For the year 2008, net sales decreased by 9% compared with 2007 due primarily to the significant economic deterioration in the
fourth quarter in which the Company’s revenues were 24% lower than in the prior year quarter. The impact of the downturn was
particularly severe to the Company because of the normal seasonality of its sales, which are typically highest in the last four months
of the year. For the full year, the downturn led to unfavorable price/mix across all segments and accelerated volume declines in Film
Capture and Traditional Photofinishing within FPEG. These declines were partially offset by volume increases in CDG, and
Document Imaging within GCG, and favorable foreign exchange across all segments. Within CDG, Digital Capture and Devices and
Consumer Inkjet Systems experienced significant increases in volume in 2008, primarily related to new product introductions in 2007
and throughout 2008.