Feb. 9, 2012
Eastman Kodak Company announced today that it plans to phase out its dedicated capture devices business — comprising digital cameras, pocket video cameras and digital picture frames — in the first half of 2012.
Instead it will focus on retail-based photo kiosks and digital dry lab systems, consumer inkjet printers, apps for Facebook, the Kodak Gallery, camera accessories and batteries and traditional film capture and photographic paper business, according to a company press release.
"For some time, Kodak's strategy has been to improve margins in the capture device business by narrowing our participation in terms of product portfolio, geographies and retail outlets. Today's announcement is the logical extension of that process, given our analysis of the industry trends," Pradeep Jotwani, president, Consumer Businesses, and chief marketing officer, said in the release.
Upon completion of the phase-out, Kodak expects to achieve annual operating savings of more than $100 million. Kodak expects to incur a charge related to separation benefits of approximately $30 million resulting from the exit of the business.
This announcement follows the company's January filing for Chapter 11 bankruptcy protection.
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