I am aware of Perez's assertion that the restructuring will be completed in 2007. Nevertheless, the additional 3,000 layoffs announced yesterday came as a surprise to the market and it was not well-received by investors. As we both know, there are signficiant charges associated with layoffs and these had not been anticipated. Maybe that's the reason why some found Kodak's gudiance curiously low. I don't know.
But, on the plus side, Xerox's progress should give us some evidence that turnarounds are possible. They certainly looked all but done for in 2001/2002...
I agree with you 100%.
Originally Posted by HerrBremerhaven
Most manufacturers in the EU and Americas are forced to finance their operations with debt. Much of it is high-yield and the Hedge Funds are the largest buyers in these markets.
Corporate finance in the EU and Americas have tried to create a market for their high-yield bonds for a very long time. The result is that Hedge Funds can descend on these operations and jerk the management around like puppets because they control the appetite for the company's debt. Not surprisingly, most financial analysts are a lot more interested in the debt offerings of manufacturers than the stocks themselves.
Now CFOs are complaining about Hedge Funds and this is akin to Dr. Frankenstein confronting his own monster and trying to convince it that it doesn't know its place.
Kodak's brand transformation will be very difficult execute. They have traditionally been a maker of low-priced consumables and, for better or worse, they are now a maker of consumer electronics. Kodak hasn't really done much in the digital world for photo enthusiasts. And, like it or not, inkjets will become, increasingly, an enthusiast market. The rest of the photo takers will simply be content to pay a few cents to Walmart or Costco for prints - or, as is increasingly the case, eschew reflection prints altogether.
Apple did have some credibility in high-priced electronics before tackling consumer electronics. The gap wasn't nearly as large as the one Kodak faces now. They were pioneers in both PDAs and MP3 players and still couldn't make the former work for them.. Kodak, on the other hand, is arriving late to the party.
But none of that really matters to me - I just want to be able to buy Tri-X and the odd roll of T-max for a bit longer...
Those layoffs were announced along with 500 immediate layoffs about 2 weeks ago. I posted it here. Is this a post you missed? It is my understanding that this was not 3000 more but the 3000 already mentioned several weeks ago.
Originally Posted by aldevo
I must have missed it! I don't think I was the only one, however....
Originally Posted by Photo Engineer
Most of the announcements concerning Kodak's earnings cited that 24,000 layoffs had been performed with a total of 27,000 planned. And yesterday, that number became a planned total of 30,000 due to 3,000 additional layoffs.
Those additional 3,000 layoffs were not announced during the earnings call and the 27,000 number was raised by at least one analyst. That would have been the time to provide a correction but none was offered.
An odd sort of mis-step. Nothing malicious behind the omission, I'm sure, but strange that there should be so much surprise a week later.
I was wrong and you were right. Kodak added the 3,000 to the previous figure.
Sorry I had the facts wrong.