Kodak Slashes Dividend To Help Fund Expansion To Digital Market - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Business & Finance

Kodak Slashes Dividend To Help Fund Expansion To Digital Market

The company expects to spend as much as $3 billion on product development and acquisitions to enter non-photographic areas.

Eastman Kodak Co. said Thursday that it will slash its dividend to 50 cents from $1.80 a share to help fund an overhaul that's moving the company into digital markets from its traditional film and photography business.

Kodak said it expects to spend as much as $3 billion on product development and acquisitions to enter non-photographic areas, including commercial and consumer printing, digital cameras, and medical imaging. The shift puts Kodak in direct competition with Canon, Hewlett-Packard, Seiko Epson. and Xerox.

Kodak predicted the multi-billion-dollar cost of revamping its business would generate $16 billion in revenue by 2006 and $20 billion by 2010.

As part of the overhaul, Kodak's board voted to cut its semi-annual dividend payments to 25 cents from 90 cents, payable Dec. 12 to shareholders of record as of Nov. 3. The company said the move was necessary to take the cash generated by its traditional businesses and spend it on restructuring.

"We are acting with the knowledge that demand for traditional products is declining, especially in developed markets," Daniel A. Carp, Kodak chairman and CEO, said in a statement. "Given this reality, we are moving fast-as digital markets demand-to transform our business portfolio, with an emphasis on digital commercial markets."

In its struggle to adapt to consumers' shift to digital technology, Kodak said in August that it was reorganizing its business units and placing an executive with digital experience in charge of each division.

To achieve its revenue goals, Kodak said that over the next two years, it would cut costs and manage its consumer and paper businesses for cash and manufacturing share. In the two- to five-year timeframe, the company plans to use the cash generated from traditional businesses to strengthen its position in targeted markets.

Beyond five years, the company said it would expand its brand and technology into other new markets, such as commercial workflow management, mobile imaging and flat-panel and flexible film displays.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
News
COVID-19: Using Data to Map Infections, Hospital Beds, and More
Jessica Davis, Senior Editor, Enterprise Apps,  3/25/2020
Commentary
Enterprise Guide to Robotic Process Automation
Cathleen Gagne, Managing Editor, InformationWeek,  3/23/2020
Slideshows
How Startup Innovation Can Help Enterprises Face COVID-19
Joao-Pierre S. Ruth, Senior Writer,  3/24/2020
Register for InformationWeek Newsletters
Video
Current Issue
IT Careers: Tech Drives Constant Change
Advances in information technology and management concepts mean that IT professionals must update their skill sets, even their career goals on an almost yearly basis. In this IT Trend Report, experts share advice on how IT pros can keep up with this every-changing job market. Read it today!
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll