Kodak publishes 2013-15 cashflow forecast
By Simon Nias Friday, 12 October 2012
Kodak has forecast a total operating cash flow of $33m (£20m) on revenue of $1.2bn for the first six months of 2013, although its US operation is forecast to lose $110m in the same period.
The manufacturer has today published a cash flow forecast for the next three years for its Commercial Imaging business, comprising the commercial, packaging and functional printing and enterprise services that will make up the post-Chapter 11 Kodak.
The forecast reveals that Kodak's US operating cash flow will remain in the red for all but two of the next 10 months, with the largest projected monthly loss coming in January 2013, when it will lose $49m.
For the remainder of 2012, Kodak has forecast a $1m profit in September and a $9m profit in December, offset by losses of $20m and $8m in October and November.
The first six months of 2013 are all expected to result in negative US operating cash flow, with monthly losses of $49m (Jan), $13m (Feb), $2m (Mar), $18m (Apr), $11m (May) and $17m (Jun) contributing to a $110m loss for the first half.
However, despite its anticipated US losses, Kodak's pro forma projection for its combined operating cashflow, taking into account the planned divestment of the Document Imaging and Personalised Imaging businesses as well as the planned wind-down in consumer printer sales, predicts a positive result of $32m in the same period.
Kodak's forecast goes on to predict a dramatic improvement in second half performance with revenues of $1.5bn and total operating cash flow of $138m from July to December 2013.
Kodak's annual forecast for 2014 and 2015 shows total operating cash flow of $243m and $285m respectively, on revenues of $2.8bn and $3bn.
While the figures have been adjusted to reflect the impact of the sale of certain business units and estimated cost savings from the company's restructuring programme, including the reduction of Kodak's global workforce by 3,900 positions in 2012, they do not reflect the cash costs arising from its domestic and foreign pensions and other post-retirement benefit obligations.
The publication of Kodak's cash flow forecast comes as it kicks off discussions "on a plan of reorganisation with certain key creditor groups" following "significant progress made to date in its restructuring".
Kodak chief executive Antonio Perez said in a statement: "As we move forward to emergence and explore an array of financing options, we believe there is confidence and interest among the financial community in our Commercial Imaging business and its future business plans.
"We are gratified that there appears to be interest among several potential lenders to finance this business and its emergence, and with this disclosure, we are now better positioned to explore these funding opportunities."Tweet
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