Looking through a new lens
Eastman Kodak went on a tear on Tuesday after it announced a new business structure that will eliminate its long-standing film group, as it looks to focus its attention to digital solutions. The company will now have two new business segments with a commercial segment headed by Phillip Faraci and a consumer segment headed by Laura Quatela.
Each segment will absorb part of the company’s shrinking film operations. CEO Antonio Perez said, “This new structure simplifies the organization, focuses it more precisely on our consumer and commercial customers, and puts the right people in place to capitalize fully on the tremendous technological capabilities of Kodak.”
The company, which has been the subject of bankruptcy rumors, is trying to raise capital through either financing or the sale of some of its patents. While investors cheered the restructuring, not everyone was sold. One analyst commented, “Supposedly they believe that it will achieve some level of productivity and cost reductions that will be additive to profitability. But in the absence of any detail as to how much benefit these actions will eventually yield, it’s tough to say if this is a meaningful announcement or not.”
Eastman Kodak (EK : NYSE : US$0.60), Net Change: 0.20, % Change: 49.96%, Volume: 67,621,698
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