Quote Originally Posted by Photo Engineer View Post
At the present time the film (B&W and color) and color paper units are making a healthy profit for Kodak. There is even some R&D going on, believe it or not.

Well, they made a $98 million operating profit on $1.36 billion for film, paper, and chemicals. That margin isn't as good as in years past, and they cited raw material costs as the factor.

Kodak probably does as good a job as anybody in the industry in terms of mitigating the effects of rising raw material costs (e.g. recycling unused silver as scrap), so I'm a little concerned what that might mean for smaller players.

This isn't so simple as just raising your prices to compensate for the cost. You can announce a price increase any old time you want, but you won't see any incremental revenue until distributors re-order your products at the increased price.

On the plus side, film sales only declined 15% year-over-year, while they had been declining between 20-30% year-over-year every quarter for the past several years. I'd like to think that we are beginning to see a slowing of the decline in film sales - but then the discontinuation of film and paper operations from Agfa and Konica Minolta probably played a role.

I'd certainly be interested in finding out where the declines are greatest (E-6 > C-41 > B&W, I would expect) but I know of no reliable source for that information.