From their last reported Q (3/2011).

ROCHESTER, N.Y., Nov. 3 – Eastman Kodak Company (NYSE:EK) today reported steady
progress toward becoming a profitable and sustainable digital company as third-quarter digital
earnings improved, excluding non-recurring patent licensing revenue in the prior-year period, and
sales increased in its core digital growth businesses. Total company revenue declined largely
because of lower sales of traditional products, a planned reduction in digital camera sales, and the
absence, compared to the year-ago period, of significant non-recurring patent licensing revenue.
Third-quarter sales were $1.462 billion, a 17% decrease from the year-ago quarter or only 5%
when excluding the benefit of a $210 million non-recurring patent licensing transaction in the yearago
period. Third-quarter digital revenue grew 3% excluding that year-ago intellectual property
revenue and a 25% decline in the company’s Digital Cameras & Devices business, which reflects
the strategic decision this year to trade revenue for improved earnings. Revenue from the core
digital growth businesses – Consumer and Commercial Inkjet, Workflow Software & Services, and
Packaging Solutions – increased 13%, fueled by 44% revenue growth in Consumer Inkjet printers
and ink, and 89% revenue growth in Packaging Solutions. The revenue decline rate for the
company’s Film, Photofinishing and Entertainment Group slowed to 10% in the third quarter.
What's killing Kodak revenues is film, both photo and motion picture. Their overhead to carry this product line as it declines in gross revenues is eating into the capital of the company, and digital services of all types are not growing fast enough to cover those losses. Even if the actual film per roll or issue registers a tiny profit, it's nowhere near enough to make up for their realized losses. It's kind of like switching to a more economic 4-cylinder car from an 8-cylinder truck to save gas, but you're still forced to pull a 20 ft. trailer up a hill.

Pensions and medical costs are also a huge drag, stated in their annual filings. The outcome scenarios here are brutal and sad.

Kodak is about 75% down from its historic high point, almost all that loss attributed to consumers voting with their $$$ away from film. While I question some of the strategic vision of the digital side (Kodak had all the tools and patents to become a major sensor supplier starting in the early 1990's) it's hard to see how any management could have stopped the total collapse of films sales and the accompanying revenue.

I look at a very large # of corporate websites for statements as part of my work and I have to say, the Kodak one is excellent. In fact, for its organization and clarity it's the best I've ever viewed:

http://investor.kodak.com/phoenix.zh...l-newsEarnings