The firm has placed commercial print which includes Encad and the NexPress and KPG joint ventures at the heart of its growth strategy. It estimates that its sales in the sector will grow 60% to 2.4bn by 2006.
Kodak said that its traditional film business, which has declined as consumers switch to digital cameras, would shrink from 70% to 40% of sales, while digital revenues would grow from 30% to 60%, equating to a an actual 5-6% growth between now and 2006.
Kodak plans to grow its sales from the current 7.9bn to 9.7bn by 2006 and 12.1bn by 2010. However, the meeting, intended to clarify its strategic direction, instead caused its share price to dive around 18% to a 20-year low of 12.35 after it cut its dividend for the first time in more than a century.
Chairman and chief executive Dan Carp described the shift in focus as Kodaks biggest turning point in more than 120 years.
"We will not be lurching into new areas as our acquisitions will be very targeted and will nestle neatly within our skill sets. We will expand our capacity in on-demand colour publishing and we will start to develop some commercial services centred on digital asset management," he said.
Story by Rachel Barnes
