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.
Originally Posted by Photo Engineer
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.