In its third quarter results, Kodak announced a 2% drop sales to $820m (£507m) within its Graphic Communications Group. This was attributed to a 5% drop in worldwide sales across all divisions to $2.405bn.

Although earnings from continuing operations rose $69m, the company has slashed its operating profit forecast for 2008 to between $200m and $250m from a previous forecast of between $400m to $500m.

The company also lowered projections for full-year revenue growth, predicting a drop of between 3-5% compared to earlier estimate of up to a 2% increase.

Perez said: "We remain confident that our strategy is sound, but given today's challenging economic climate, we are taking a number of specific actions to strengthen our operations going forward."

He added that Kodak plans a tighter focusing on its investment portfolio, "intensifying our emphasis on generating cash, and aligning our cost structure to the new economic realities."

Shares in the company were down on 31 October when the Kodak figures were posted, closing at $9.16.