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  1. #61

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    Good points.
    Things go up and down. A quarter is a too short period.

  2. #62

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    Just a thought, but I wonder if its to do with the new Portra 400 being introduced and Kodachrome finishing. I know that I resisted buying up anymore 400NC over the past couple of months, waiting for the new film to appear in 2011. Also, people frantically shooting existing backlogs of Kodachrome last year as opposed to buying new film? Hopefully the excitement around Portra 400 will lead to a resurgence this quarter?

  3. #63

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    Kodachrome apparently accounted for a very small percentage of total still film sales.

    Tom

  4. #64

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    When you think about it one way, Kodak has done an amazing job in keeping their film division profitable for so long. What other business can you image that could sustain a 98% drop in sales and still remain profitable, or at least nearly profitable?

  5. #65
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    Alan has made some very salient points here!

    PE

  6. #66
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  7. #67

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    Quote Originally Posted by perkeleellinen View Post
    Yes, in manufacturing.
    Understandable then =)

    (Sorry for Off Topic)

  8. #68
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    I think it's almost time to buy another freezer..

  9. #69

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    Quote Originally Posted by alanrockwood View Post
    When you think about it one way, Kodak has done an amazing job in keeping their film division profitable for so long. What other business can you image that could sustain a 98% drop in sales and still remain profitable, or at least nearly profitable?
    I am no math genius, but doesn't it depend on profit margins?

    If one run can supply a years worth of film in one day, that same machine and infrastructure can supply more than 300 times that at current levels per year (or however you cut the pie...)

    Maybe I am wrong; I certainly have no point to make other than to say I don't think Kodak MANAGEMENT needs a pat on the back.
    Kodak Researchers sure.

  10. #70

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    Quote Originally Posted by Ray Rogers View Post
    I am no math genius, but doesn't it depend on profit margins?

    If one run can supply a years worth of film in one day, that same machine and infrastructure can supply more than 300 times that at current levels per year (or however you cut the pie...)

    Maybe I am wrong; I certainly have no point to make other than to say I don't think Kodak MANAGEMENT needs a pat on the back.
    Kodak Researchers sure.
    To oversimplify a bit, consider the following. A business typically has fixed costs and costs that vary with production. If sales dip below fixed costs then profits become negative, even if the the variable costs drop to zero. If a business is geared to run profitably at a sales volume of. let us say $10 billion, then fixed costs are probably fairly high, let us say for the sake of argument $500 million. If sales drop to $200 million (and assuming that production levels are well aligned with sales, i.e. neither over nor under production) the operation goes into the red.

    Also, for some types of business production is run in batches, and batches may have a minimum size. The product may also have a limited shelf life. I understand that film satisfies all these conditions. If the minimum batch size is relatively large, as would be typical of an operation designed for a high production rate, and if the sales rate drops too low then there will be waste as the unsold product expires on the shelf. The wasted product eats into profits, and in the worst case can cause the operation to go into the red.



 

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