Exhibit (99.1)
EASTMAN KODAK COMPANY
Media Contact:
David Lanzillo 585-781-5481 david.lanzillo@kodak.com
Investor Relations Contacts:
Don Flick 585-724-4352 donald.flick@kodak.com
Patty Yahn-Urlaub 585-724-4683 patty.yahn-urlaub@kodak.com
Kodak Corrects Previously Provided GAAP Reconciliation Items
ROCHESTER, N.Y., Jan. 31 - In its fourth quarter 2005 earnings
announcement and related investor presentation on January 30, 2006,
Eastman Kodak Company (NYSE:EK) provided certain 2006 digital financial
projections, which it reconciled to the most directly comparable GAAP
financial measures in the related attached appendices. Those
reconciliations are now understood to have included errors.
The corrected information is below:
Digital Revenue Growth
The Digital Revenue Growth information provided to investors is
presented on a stand-alone basis. Because of the presentation of this
amount on a stand-alone basis, this Digital Revenue Growth information
represents a non-GAAP measure. The table below reconciles Digital
Revenue Growth to Total Company Revenue Growth, which is the most
directly comparable GAAP measure:
2004 2005 2005 2006
Actual Actual Pro Forma Plan
------ ------ --------- ----
Digital Revenue Growth,
as presented 39% 40% 45% 16%-22%
Traditional Revenue Decline* (11)% (18)% (18)% (22)%-(16)%
New Technologies Revenue
Growth* 37% 17% 24% *
----- ----- ----- ------
Total Company Revenue Growth 5% 6% 6% (2)%-4%
* Traditional Revenue Decline includes New Technologies
Projected Digital Earnings (2006 Digital Earnings Outlook)
The following table reconciles Projected Digital Earnings for 2006, as
presented, to the most directly comparable GAAP measure of total
consolidated loss from continuing operations before interest, other
income (charges), net and income taxes (loss from operations) (dollar
amounts in millions):
Projected Digital Earnings, as presented $350-$450
Traditional Earnings, New Technologies Earnings
and Restructuring Costs (1,200)-(950)
-------------
Loss from operations $ (850)-$(500)
2006 Outlook
Additionally, in its fourth quarter 2005 earnings announcement, the
company indicated that it expected to increase 2006 digital earnings to
a range of $350 million to $450 million. As a result of the corrections
noted above, the company expects 2006 total loss from operations, which
is the most directly comparable GAAP financial measure, in the range of
a negative $500 million to a negative $850 million.
Safe Harbor Statement:
Certain statements in this press release may be forward looking in
nature, or "forward-looking statements" as defined in the United States
Private Securities Litigation Reform Act of 1995. For example,
references to expectations for the Company's earnings, revenue, revenue
growth, and cash are forward-looking statements.
Actual results may differ from those expressed or implied in forward-
looking statements. In addition, any forward-looking statements
represent our estimates only as of the date they are made, and should
not be relied upon as representing our estimates as of any subsequent
date. While we may elect to update forward-looking statements at some
point in the future, we specifically disclaim any obligation to do so,
even if our estimates change. The forward-looking statements contained
in this press release are subject to a number of factors and
uncertainties, including the successful:
- Implementation of our digital growth and profitability strategies,
business model, and cash plan;
- Implementation of a changed segment structure;
- Implementation of our cost reduction program, including asset
rationalization and monetization, reduction in sales, general and
administrative costs and personnel reductions;
- Implementation of, and performance under, our debt management
program;
- Implementation of product strategies (including category
expansion, digitization, organic light emitting diode (OLED)
displays, and digital products);
- Implementation of intellectual property licensing and other
strategies;
- Development and implementation of e-commerce strategies;
- Completion of information systems upgrades, including SAP, our
enterprise system software;
- Completion of various portfolio actions;
- Reduction of inventories;
- Integration of newly acquired businesses;
- Improvement in manufacturing productivity and techniques;
- Improvement in receivables performance;
- Reduction in capital expenditures;
- Improvement in supply chain efficiency and management of sourcing
relationships;
- Implementation of our strategies designed to address the decline
in our traditional businesses; and
- Performance of our business in emerging markets like China, India,
Brazil, Mexico and Russia;
Forward-looking statements contained in this press release are subject
to the following additional risk factors:
- Inherent unpredictability of currency fluctuations and raw
material costs;
- Competitive actions, including pricing;
- Changes in our debt credit ratings and our ability to access
capital markets;
- The nature and pace of technology evolution, including the
traditional-to-digital transformation;
- Continuing customer consolidation and buying power;
- Current and future proposed changes to accounting rules and to tax
laws, as well as other factors which could adversely impact our
effective tax rate in the future;
- General economic, business, geopolitical, regulatory and public
health conditions;
- Market growth predictions; and
- Other factors and uncertainties disclosed from time to time in our
filings with the Securities and Exchange Commission;
Any forward-looking statements in this press release should be evaluated
in light of these important factors and uncertainties.
For additional information about Kodak, visit: www.kodak.com
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2006