Slumping consumer sales sent Kodak’s second-quarter earnings down 61%, as the film giant Wednesday announced plans to cut up to 6,000 jobs to minimize profit declines over the balance of the year.
Rochester, N.Y.-based company reported $112 million in net income in the latest quarter, down from $284 million in the same period last year.
Net sales were roughly flat at $3.35 billion. But excluding the impact of foreign currency exchange, sales actually fell 6%.
“Our traditional consumer film and processing operations continue to face challenges associated with the increasing popularity of digital photography, as well as persistent economic weakness, continuing price pressure and an associated decline in travel and tourism,” Kodak chairman-CEO Daniel Carp said.
Kodak said its 4,500-6,000 planned jobs cuts reflect the “business reality” that digital cameras are undercutting core consumer-film sales.
Eric Rodli, prexy of Kodak’s Entertainment Imaging unit, said there would be “no material impact” from the job cuts in Hollywood. The local operations include motion-picture film sales activity, which Kodak said increased 18% in the period.
The financial results were a bit better than expected. Kodak shares closed up $2.27, or 9%, at $27.