The figure was revealed in Kodak's first quarter 2004 results, which are the first under its new structure announced last September as part of its strategy to focus more on digital imaging including commercial print.

However, Kodak will pay Heidelberg up to 85m ($150m) based on sales up to the end of 2005.

The Commercial Printing segment, which includes Encad and contributions from the NexPress and Kodak Polychrome Graphics joint ventures, made an operating loss of 9.1m compared to a profit of 5.1m in 2003. That figure included a 5.1m charge for inventory acquired with Scitex Digital Printing.

Sales increased 51% to 106.5m, which was entirely due to the contributions from Versamark (formerly Scitex Digital Printing).

Kodak's operating profits were down 28% to 7.4m on sales up 11% to 1.6billion.

Kodak met or exceeded seven of its eight five-year environmental goals. The targets were made to reduce emissions, conserve natural resources and improve its environmental systems.

Story by Barney Cox