Sales in Q2 were down 8% at $295m (£232m), but Kodak posted a big improvement in profitability despite “challenging business conditions” with operational EBITDA doubling to $22m. Gross profit was up 24% at $63m.
Chairman and CEO Jim Continenza commented: “A number of factors have contributed to our success: a strong leadership team, dedicated employees and a clearly defined long-term plan focused on driving innovation, productivity and smart revenue in our core businesses of print and advanced materials and chemicals.
“We are proud to be an industrial manufacturer and we are concentrating on what we do best.”
Continenza said the Prosper Ultra 520 and Prosper 7000 Turbo presses had been installed as part of the controlled introduction of its latest inkjet presses, with the presses slated to be in production in Q3.
Separately, Kodak is set to sell its 84% majority stake in Jersey-based KP Services (KPS), the inkjet printing newspaper production site on the Channel Island that started production in 2016.
According to documents files with the Jersey Competition Regulatory Authority (JCRA), All Island Media will acquire loss-making KP Services for a token consideration of £2.
The filing stated that the objective of the purchase was to “ensure that there is the local capacity to continue to print the Jersey Evening Post and National Newspapers on Island after the end of the current print services contract in November 2024 at which point, it is otherwise likely that KPS would close.”
KPS has a 100% market share for newspaper printing on the island. It was set up with two Kodak Prosper 6000P high-speed inkjet web presses and four Hunkeler Combi-Solution newspaper finishing lines.
“KPS has always been in a weak commercial position because the price of printing each page is set by the national newspaper publishers who have very strong market position,” the filing explained.
“As a result, KPS has been a loss making business with no pricing power. This situation does not change because of the acquisition but by internalising KPS as a ‘division’ of the Jersey Evening Post various cost savings are available which will make KPS a break-even business.”
Last year KPS secured fresh contracts with News UK, DMG Media, and Reach that run until next year.
The acquisition would provide longevity for the ability of the Jersey Evening Post to print a physical newspaper in Jersey while also extending the availability of national newspapers on the island.
The deal is with Kodak Limited, which is to enter into an agreement with KPS to lease printing equipment to KPS at zero cost.
Kodak will also enter into an agreement with KPS to continue to supply print consumables and spare parts to KPS.
The Jersey Evening Post and Bailiwick Express were acquired in autumn 2022 by MH Ltd, which subsequently changed its name to All Island Media.
Kodak's original joint venture for KPS was with Guiton Group. All Island Media already has the right to acquire the 16% of KPS not owned by Kodak in May 2024.
