Kodak posts high profit on digital sales

NEW YORK: Eastman Kodak said on Wednesday its fourth-quarter profit rose, driven by sales of digital products such as cameras and inkjet printers.

Net income came to $215 million, compared with a year-earlier profit of $16 million. Excluding special items related to restructuring and other one-time factors, profit was 41 cents a share, falling short of analyst expectations of 52 cents a share. However, revenue rose 4% to $3.22 billion, exceeding Wall Street analyst view of $3.10 billion.

Analyst and investors have found it difficult to evaluate Kodak’s financial well being as it is growing in some areas, such as commercial and consumer printing, while shedding employees and capital in other segments.

The photography company is carrying out a lengthy and expensive effort to transform itself into a maker of digital cameras and printing services. But analysts have expressed concern over the degree to which it still relies on traditional film sales.

The Rochester, New York, company said digital revenue rose 15 percent, while traditional product sales fell 15 percent. Sales of consumer inkjet printers, an important growth area exceeded the company’s 2007 goal of 500,000 units, Kodak said.