The sky is not falling. Here's a better, more complete look at the numbers: http://investor.kodak.com/phoenix.zh...991&highlight=

Kodak's cash position is good, in fact it appears they have more cash this year than last year. With respect to the film business, Kodak attributes the small loss (only $3 million) in the fourth quarter to the increased cost of raw materials and the decline in sales volume. I hope this serves as a warning for those who jump all over Ilford for raising prices. Despite the fourth quarter loss, earnings from operation were positive in 2010 for the film division. Put more plainly, the film division made money from operations in 2010.

That said, Kodak continues to broadcast that it does not consider film a growth area or a core strategy, going forward. That is a reasonable conclusion for the company. I hate to sound like a broken record, but right now the film division still is useful for the cash it provides. We really can't know whether Kodak will succeed in the areas Perez has identified. If it doesn't create a soundly profitable business there, or even if it does, eventually it will cease producing film. That doesn't mean the film will go away, just that Kodak will no longer make it.

Reading this, I would bet that Kodak will have to raise prices for its film products and possibly keep paring away at its offerings, to keep film profitable.

-Laura