Verified Document

Eastman Kodak The Last Several Research Paper

S/G/a expenses were 19.6% of sales in 2005 and 17.1% of sales in 2009. It would take a further 16% reduction in the S/G/a expense just to break even at 2009 sales, so a cut of 20% or more in 2010 is needed to allow the company to break even in the face of steadily declining sales. One piece of goods news, however, is that the company's revenues improved quarter over quarter for Q4 2009 (MSN Moneycentral, 2010). For the problem with the unfunded pension liabilities, Eastman Kodak has restructured its pension plans and expects to gain $18 million from that move. However, it also expects that its pension liability will increase by $30 million in 2010 (2009 Form 10-K). The company seems unable to make the necessary changes to reduce this expense. As such, Eastman Kodak is having a difficult time finding profitability. The company was having difficulty with its pensions when it was making money, and now Kodak has negative cash flow from operations, making the pension an even more difficult proposition.

Overall, Eastman Kodak has a difficult financial position. The company is faced with two significant problems in a massive pension liability and rapidly declining...

Although management has undertaken strategies to address each of these issues, those strategies do not appear to be sufficient in scope or intensity to adequately address either issue. As such, Eastman Kodak remains subject to deteriorating financial position. The company needs to continue to find ways to cut costs and simultaneously get out from under its pension liabilities in order to improve its finances.
Works Cited:

MSN Moneycentral: Eastman Kodak. (2010). Retrieved April 30, 2010 from http://moneycentral.msn.com/investor/invsub/results/hilite.asp?Symbol=EK

Eastman Kodak 2009 Form 10-K. Retrieved April 30, 2010 from http://www.sec.gov/Archives/edgar/data/31235/000003123510000038/ek2009_10k.htm

Richard, C. (2005). Pension deficit, now $500 billion, may clobber corporate bonds. Bloomberg. Retrieved April 30, 2010 from http://www.bloomberg.com/apps/news?pid=10000103&refer=us&sid=a8gDLCneeLM8

RP News Wire. (2009). Kodak sharpens focus, plans leaner cost structure. Reliable Plant. Retrieved April 30, 2010 from http://www.reliableplant.com/Read/15757/kodak-sharpens-focus,-plans-leaner-cost-structure

Sources used in this document:
Works Cited:

MSN Moneycentral: Eastman Kodak. (2010). Retrieved April 30, 2010 from http://moneycentral.msn.com/investor/invsub/results/hilite.asp?Symbol=EK

Eastman Kodak 2009 Form 10-K. Retrieved April 30, 2010 from http://www.sec.gov/Archives/edgar/data/31235/000003123510000038/ek2009_10k.htm

Richard, C. (2005). Pension deficit, now $500 billion, may clobber corporate bonds. Bloomberg. Retrieved April 30, 2010 from http://www.bloomberg.com/apps/news?pid=10000103&refer=us&sid=a8gDLCneeLM8

RP News Wire. (2009). Kodak sharpens focus, plans leaner cost structure. Reliable Plant. Retrieved April 30, 2010 from http://www.reliableplant.com/Read/15757/kodak-sharpens-focus,-plans-leaner-cost-structure
Cite this Document:
Copy Bibliography Citation

Related Documents

Eastman Kodak: Problem Analysis and Recommendations Over
Words: 1692 Length: 5 Document Type: Essay

Eastman Kodak: Problem Analysis and Recommendations Over the last few years, our company has been on a loss making streak. Our sales margins have continued to decrease year after year. This effectively means that we no longer dominate the photographic film marketplace like we used to do just over a decade ago. It is important to note that as our performance (in terms of sales) further declines, our competitors, including but

Leadership Assessment, and Kodak and Fujifilm
Words: 4930 Length: 18 Document Type: Essay

Kodak and Fujifilm, And Leadership Assessment Kodak and Fujifilm The History and Core Business of Each Company Eastman Kodak, in the words of Hill and Jones (2007, p. 482), "was incorporated in new jersey on October 24, 1901, as a successor to the Eastman Dry Plate Co., the business originally established by George Eastman in September 1880." It is important to note that as the authors further point out, the Dry Plate Company

George Eastman -- History of
Words: 1879 Length: 6 Document Type: Research Proposal

However, Eastman needed him for the roller project, and together, they persisted. In 1885, the Eastman-Walker Roll Holder received a patent. It revolutionized photography, allowing amateur photographers to take up to 50 photographs in an hour, and did away with the huge camera boxes and heavy glass plates of the era. In 1885, to get rid of Walker's temper tantrums, but because he was a major stockholder, Eastman assigned him to

Antitrust Law Remedies in Intellectual Property Cases
Words: 4477 Length: 15 Document Type: Term Paper

Antitrust and Intellectual Property Antitrust Law Remedies in Intellectual Property Cases In any research paper it is important to first define the terms used prominently in order to make sure that the reader understands what is being said. In this case, the two terms that require definition are antitrust and intellectual property. According to a definition from Cornell University Law School "Trusts and monopolies are concentrations of economic power in the hands

Advancement in the Technology of Digital Photography
Words: 1355 Length: 4 Document Type: Essay

Advancement in the Technology of Digital Photography Digital Photography The subject of the paper is the advancement of the technology of digital photography. The paper will provide a concise review of the history of this aspect of photography. Film photography came first in the late 19th century and early 20th century. Moving pictures followed after the invention of film photography. Several decades later, the first attempts at digital photography were made by

Stock Market Crash of 1987
Words: 4043 Length: 12 Document Type: Term Paper

Since institutional investors typically hedge their risks by using asset liability management and derivatives instruments against market risk, it is estimated that institutional investors in a representative stock market such as the London Stock Exchange lost only 10% of the value of their assets in the 1987 crash. In the absence of such hedging the effect of the crash and the resultant liquidity crunch would have been far greater.

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now