Kodak reported its financial results for the first quarter of 2008. Total revenue grew 1% year-over-year to $2.5 billion, driven by 10% growth in digital businesses. The loss from continuing operations before taxes improved by $119 million compared to the prior year, primarily due to lower restructuring charges. Cash usage increased by $311 million versus the prior year due to higher working capital needs and other factors. While some business segments faced challenges, Kodak remains committed to achieving its full-year financial targets.
- Kodak reported financial results for the 3rd quarter of 2007, with digital revenue growing 12% while traditional revenue declined 16%.
- Net earnings from continuing operations improved by $117 million year-over-year to $34 million.
- Key digital businesses like consumer inkjet printers and digital cameras grew significantly, though inkjet start-up costs impacted results.
- Restructuring costs were lower than expected, between $750-850 million for the year versus a prior range of $900 million to $1 billion.
- The CEO outlined progress and challenges across each business segment and announced a change to consolidate silver halide products management.
Corning posted record performance in the first half of 2008 but experienced weak performance in the second half due to the global recession. While sales were up 21% in the first half, they declined 30% in the fourth quarter compared to the third quarter and previous year. Corning implemented cost-cutting measures like job cuts and spending reductions to prepare for a weak 2009. However, Corning remains confident in its long-term strategies and innovative products to drive future growth once the economy recovers.
Kellogg reported strong financial results for Q2 2008, with net sales growth of 11% and earnings per share growth of 9%. However, gross profit margins declined by about 250 basis points due to acquisitions, commodity inflation, and fuel and energy costs. The company increased its full-year 2008 earnings guidance to a range of $2.95 to $3.00 per share. Kellogg expects continued volatility in commodity markets but believes its business model and strategy will allow it to manage costs and drive pricing to offset inflation.
Intel reported record quarterly revenue of $10.7 billion for Q4 2007, up 10.5% year-over-year. Net income was $2.3 billion, up 51% from Q4 2006. For the full year 2007, operating income grew 45% to $8.2 billion on revenue of $38.3 billion, an 8% increase. Looking ahead, Intel expects Q1 2008 revenue to be between $9.4-10 billion and gross margin of 56% plus or minus a couple points.
intel Second Quarter 2007 Earnings Releasefinance6
- Intel reported second-quarter revenue of $8.7 billion, up 8% year-over-year, with operating income of $1.35 billion and net income of $1.3 billion.
- For the third quarter, Intel expects revenue between $9.0-9.6 billion with a gross margin of 52% plus or minus a couple points.
- For 2007, Intel expects gross margin of 51% plus or minus a few points and capital spending of $4.9 billion plus or minus $200 million.
This document is the transcript of an earnings call for Eastman Kodak Company for Q2 2008.
The key points are:
1) Kodak reported revenue growth of 1% for Q2 driven by digital camera, printer, and digital plate sales, offset by declines in traditional film.
2) Gross profit margins declined to 23.5% due to higher commodity costs and investments in consumer inkjet and digital printing.
3) Kodak announced a $125 million increase in investments in consumer inkjet, digital printing, and workflow products.
4) For the full year, Kodak expects revenue growth of 0-2% and earnings from operations at the low
January 2016 General Investor Presentationirbgcpartners
This document provides an overview of BGC Partners, Inc., a global brokerage company with two business segments: Financial Services and Real Estate Services. It discusses BGC's solid business model, diversified revenues, profitable acquisitions, growing electronic business, and expectations for continued dividend payments. Financial highlights from 3Q2015 show strong revenue and earnings growth compared to the prior year.
Kellogg Company reported financial results for the second quarter of 2012. Net sales increased 2.3% internally to $3.47 billion. Operating profit declined 5% to $485 million due to commodity inflation and investment in supply chain and brand building. Kellogg reaffirmed its full-year outlook for 2-3% internal net sales growth and a 2-4% decline in internal operating profit, excluding Pringles.
- Kodak reported financial results for the 3rd quarter of 2007, with digital revenue growing 12% while traditional revenue declined 16%.
- Net earnings from continuing operations improved by $117 million year-over-year to $34 million.
- Key digital businesses like consumer inkjet printers and digital cameras grew significantly, though inkjet start-up costs impacted results.
- Restructuring costs were lower than expected, between $750-850 million for the year versus a prior range of $900 million to $1 billion.
- The CEO outlined progress and challenges across each business segment and announced a change to consolidate silver halide products management.
Corning posted record performance in the first half of 2008 but experienced weak performance in the second half due to the global recession. While sales were up 21% in the first half, they declined 30% in the fourth quarter compared to the third quarter and previous year. Corning implemented cost-cutting measures like job cuts and spending reductions to prepare for a weak 2009. However, Corning remains confident in its long-term strategies and innovative products to drive future growth once the economy recovers.
Kellogg reported strong financial results for Q2 2008, with net sales growth of 11% and earnings per share growth of 9%. However, gross profit margins declined by about 250 basis points due to acquisitions, commodity inflation, and fuel and energy costs. The company increased its full-year 2008 earnings guidance to a range of $2.95 to $3.00 per share. Kellogg expects continued volatility in commodity markets but believes its business model and strategy will allow it to manage costs and drive pricing to offset inflation.
Intel reported record quarterly revenue of $10.7 billion for Q4 2007, up 10.5% year-over-year. Net income was $2.3 billion, up 51% from Q4 2006. For the full year 2007, operating income grew 45% to $8.2 billion on revenue of $38.3 billion, an 8% increase. Looking ahead, Intel expects Q1 2008 revenue to be between $9.4-10 billion and gross margin of 56% plus or minus a couple points.
intel Second Quarter 2007 Earnings Releasefinance6
- Intel reported second-quarter revenue of $8.7 billion, up 8% year-over-year, with operating income of $1.35 billion and net income of $1.3 billion.
- For the third quarter, Intel expects revenue between $9.0-9.6 billion with a gross margin of 52% plus or minus a couple points.
- For 2007, Intel expects gross margin of 51% plus or minus a few points and capital spending of $4.9 billion plus or minus $200 million.
This document is the transcript of an earnings call for Eastman Kodak Company for Q2 2008.
The key points are:
1) Kodak reported revenue growth of 1% for Q2 driven by digital camera, printer, and digital plate sales, offset by declines in traditional film.
2) Gross profit margins declined to 23.5% due to higher commodity costs and investments in consumer inkjet and digital printing.
3) Kodak announced a $125 million increase in investments in consumer inkjet, digital printing, and workflow products.
4) For the full year, Kodak expects revenue growth of 0-2% and earnings from operations at the low
January 2016 General Investor Presentationirbgcpartners
This document provides an overview of BGC Partners, Inc., a global brokerage company with two business segments: Financial Services and Real Estate Services. It discusses BGC's solid business model, diversified revenues, profitable acquisitions, growing electronic business, and expectations for continued dividend payments. Financial highlights from 3Q2015 show strong revenue and earnings growth compared to the prior year.
Kellogg Company reported financial results for the second quarter of 2012. Net sales increased 2.3% internally to $3.47 billion. Operating profit declined 5% to $485 million due to commodity inflation and investment in supply chain and brand building. Kellogg reaffirmed its full-year outlook for 2-3% internal net sales growth and a 2-4% decline in internal operating profit, excluding Pringles.
This document summarizes Intel's first-quarter 2007 financial results. Key points include:
- Revenue of $8.9 billion, operating income of $1.7 billion, net income of $1.6 billion, and EPS of 27 cents.
- Guidance for Q2 2007 includes expected revenue between $8.2-8.8 billion and gross margin of 48% plus/minus a couple points.
- Guidance for full year 2007 includes expected gross margin of 51% plus/minus a few points and R&D spending of $5.6 billion.
- Intel reported Q4 revenue of $8.2 billion, down 19% sequentially, with operating income of $1.5 billion, down 50% sequentially and net income of $234 million. For the full year 2008, revenue was $37.6 billion, down 2% from 2007, with operating income of $9 billion, up 9% from 2007 and net income of $5.3 billion.
- Looking ahead, Intel expects Q1 revenue in the vicinity of $7 billion with gross margin in the low 40s due to higher costs. For full year 2009, spending is expected to be between $10.4-10.6 billion with a tax rate of around 27%.
- The results
PPG Industries reported their third quarter 2008 financial results. Despite challenges like hurricanes, an auto industry slowdown, and higher costs, PPG achieved double-digit sales and earnings growth in most business segments. They completed the sale of their automotive glass business and announced a restructuring to reduce costs. Strong cash generation allowed them to reduce debt by over $650 million for the year so far.
PPG Industries reported financial results for Q4 2008 and full year 2008. Q4 was challenging with dramatic volume declines in automotive OEM and industrial end markets due to the global economic slowdown. However, other segments delivered solid results. For the full year, PPG set a new sales record of $16 billion and achieved strong cash flow generation, debt repayment, and exceeded expectations for the SigmaKalon acquisition. However, adjusted EPS was down over 10% due to Q4 results. PPG is well positioned for economic challenges in 2009 with a strong cash position and minimal debt maturities.
CSX reported first quarter earnings results. Surface transportation revenues increased 10% to $2.1 billion due to an 8.6% increase in revenue per car. Operating expenses increased only 2% through operations and management productivity. Surface transportation operating income increased 72% and drove a 152% increase in earnings per share. Looking forward, CSX expects tougher comparables but their foundation of strategies and financial improvements provide confidence.
BGC Partners held an earnings presentation for Q2 2015. The presentation included the following key points:
- Revenues for Q2 2015 were $684.6 million, up 59.1% from Q2 2014, with pre-tax distributable earnings of $77.5 million, up 46.3%.
- Financial services revenues were $435 million, up over 60% due to the consolidation of GFI Group, while real estate revenues were $239.7 million, up 61%.
- BGC maintains a diverse revenue base across different asset classes and geographies to reduce risk.
Q22015 earnings presentation v final (working version)irbgcpartners
BGC Partners reported financial results for the second quarter of 2015. Revenues increased 59% compared to the second quarter of 2014, driven by the consolidation of GFI Group. Financial services revenues grew over 60% and pre-tax profits increased over 37% compared to the prior year. Volatility levels increased across most asset classes, which typically drives increased demand for hedging. The strengthening US dollar negatively impacted non-US revenues.
- Kellogg reported third quarter 2012 net sales of $3.72 billion, up 12.3% year-over-year. Internal growth was 2.8%.
- North America sales increased due to strong performance in snacks and specialty channels. Morning Foods & Kashi grew internally 5.4% due to cereal and Pop-Tarts.
- Europe sales trends improved sequentially. Latin America declined due to inventory reductions but Asia Pacific grew.
- Operating profit was $479 million, up 3.2% year-over-year due to commodity inflation and recall costs. Integration of Pringles is proceeding as expected.
Corning Inc. reported strong financial performance in its 2007 Annual Report. Net income reached an all-time high of $2.15 billion, up 16% from 2006. Sales increased 13% to $5.86 billion, driven by high demand for LCD glass and new diesel filtration products. Corning also achieved records for earnings per share at $1.34 and operating cash flow at $2.1 billion. The report discusses Corning's strategy of focusing on innovation to drive growth, maintaining financial stability, and improving business portfolio balance. Key accomplishments in 2007 included expanding LCD glass capacity and developing innovations in optical fiber and life sciences technologies.
PPG Industries reported strong financial performance in the second quarter of 2008. Sales grew 42% to a record $4.4 billion due to acquisition and organic growth. Segment earnings increased 18% despite inflationary pressures. Price increases contributed to growth, offsetting weak demand in automotive and construction. The company expects moderating growth and higher prices to offset costs in the third quarter.
- Dover Corporation reported record first quarter revenue, earnings, and bookings. Revenue increased 18% year-over-year to $1.8 billion and earnings per share grew 5% to $0.67.
- Segment margins declined 210 basis points to 13.0% due to weaker performance in Automation & Test end-markets and higher costs. However, organic growth was 3.8% and acquisition growth was 12.0%.
- Free cash flow decreased 82% to $16.7 million due to higher compensation and benefits payments, taxes, and capital expenditures. The company expects full-year free cash flow to be 8-10% of revenue.
Jagran Prakashan reported mixed quarterly results, with top-line growth of 12% driven by a 13% rise in advertising revenue, while margins contracted due to higher newsprint costs. Earnings grew 10% aided by a spike in other income. While the company expects 17-18% advertising revenue growth for FY2011, analysts maintain a buy rating due to strong long term growth prospects and attractive valuations following the company's acquisition of Mid-Day's print business.
Caterpillar reported record quarterly sales, revenues, and profits in Q2 2008 driven by strong growth outside of North America. Specifically:
- Sales and revenues increased 20% to a record $13.6 billion compared to Q2 2007. Profits increased 34% to a record $1.1 billion.
- 60% of sales came from outside North America, up from 55% a year ago, as growth outside North America was 30% compared to 7% inside North America.
- The company increased its full-year outlook for sales to about $50 billion (from a previous range of $47.2-49.5 billion) and profits to about $6 per share (from
air products & chemicals Q4 FY 08 earningsfinance26
- Air Products reported fiscal Q4 EPS from continuing operations of $1.26, up 10% from $1.15 in the prior year on an adjusted basis. Fiscal year 2008 sales increased 14% to $10.4 billion and income from continuing operations grew 16% to $1.1 billion.
- For fiscal year 2009, Air Products expects EPS to be in the range of $5.10 to $5.35, representing year-over-year earnings growth on a continuing operations basis of 1% to 6%.
This document is a financial supplement from Genworth Financial for the second quarter of 2007. It includes sections on net income, balance sheets, investments and sales by business segment. Some highlights include:
- Net income for various periods including the second quarter of 2007 and comparisons to prior years.
- Balance sheet information as of June 30, 2007 with comparisons to prior quarters. Total stockholders' equity excluding other comprehensive income was $12.4 billion as of Q2 2007.
- Sales and revenue information by business segment including Retirement and Protection, International, and U.S. Mortgage Insurance for the second quarter and comparisons to prior quarters.
- Kodak's net sales decreased 7% in Q2 2007 compared to Q2 2006, primarily due to declines in volumes and prices across many business units. However, gross profits increased 14% due to cost reductions.
- Digital revenues increased 3% led by enterprise solutions, while traditional revenues declined 17% due to declines in film capture and retail printing.
- Consumer Digital Imaging Group sales declined 10% due to volume and price declines, but gross profits increased 23% due to cost reductions.
- Film Products Group sales declined 15% due to declines in consumer film capture, but gross profits declined only slightly.
Danaher Corporation announced its third quarter 2002 results, reporting a 32% increase in net earnings to $116.0 million compared to third quarter 2001. Diluted earnings per share increased 25% year-over-year to $0.74. Total sales for the quarter grew 28% to $1,151.7 million, driven primarily by acquisitions completed in the first quarter of 2002. For the first nine months of 2002, net earnings were $128.7 million which included a $173.8 million one-time non-cash charge related to goodwill impairment. Excluding this charge, nine month net earnings were up 14% to $302.4 million compared to the same period in 2001.
This document provides a summary of Eastman Kodak's first quarter 2007 earnings call.
1) Kodak reported revenue that was essentially on plan for the quarter, with earnings from operations slightly ahead of plan. Traditional revenues declined less than expected while digital revenues were on plan.
2) Kodak saw strong demand for its new line of consumer inkjet printers and will increase investments in this business.
3) Graphic communications saw some new product launches but digital revenue growth was below projections.
4) SG&A expenses declined significantly year-over-year, putting Kodak on track to meet full-year targets. Restructuring activities also progressed according to plan.
Danaher Corporation announced record results for its second quarter and first six months of 2006. Net earnings for the second quarter were $315 million, a 40% increase over the previous year. Sales for the second quarter were $2.35 billion, up 21.5% compared to the previous year. The company's CEO stated that strong core revenue growth across all three reporting segments contributed to the positive results and reinforced confidence for the second half of the year.
Kodak reported its first quarter 2006 earnings. The company faced higher than normal inventory in its consumer digital business due to fourth quarter price reductions. Its graphic communications business performed better than expected. Film and photofinishing revenue declined as expected but earnings were slightly better than planned.
Kodak also announced it would pursue strategic alternatives for its health business and restructure its global manufacturing and logistics operations. It will reduce corporate costs by retiring three senior officers and realigning organizational entities to further its transformation to a digital company.
The document is Genworth Financial's 2004 annual report. It provides financial information for 2004 including total assets of $103.9 billion, net earnings from continuing operations of $1,145 million, and net earnings per share of $2.33. It also lists pro forma financial results. The letter to shareholders discusses Genworth's opportunities in protection, retirement income, and mortgage insurance. It outlines Genworth's mission to help individuals financially through these shifting times. The letter also discusses Genworth's financial strength, growth opportunities, challenges, and focus on creating shareholder value.
Kodak reported that for the second quarter they were on plan for revenue and ahead of plan for earnings, with digital revenue growth beginning to accelerate. The company also discussed progress in various business units, with the Film Products Group exceeding expectations and the Consumer Digital Imaging Group showing improvements in digital revenue and margins. Kodak reaffirmed its commitment to achieving its full-year goals and financial targets.
This document summarizes Intel's first-quarter 2007 financial results. Key points include:
- Revenue of $8.9 billion, operating income of $1.7 billion, net income of $1.6 billion, and EPS of 27 cents.
- Guidance for Q2 2007 includes expected revenue between $8.2-8.8 billion and gross margin of 48% plus/minus a couple points.
- Guidance for full year 2007 includes expected gross margin of 51% plus/minus a few points and R&D spending of $5.6 billion.
- Intel reported Q4 revenue of $8.2 billion, down 19% sequentially, with operating income of $1.5 billion, down 50% sequentially and net income of $234 million. For the full year 2008, revenue was $37.6 billion, down 2% from 2007, with operating income of $9 billion, up 9% from 2007 and net income of $5.3 billion.
- Looking ahead, Intel expects Q1 revenue in the vicinity of $7 billion with gross margin in the low 40s due to higher costs. For full year 2009, spending is expected to be between $10.4-10.6 billion with a tax rate of around 27%.
- The results
PPG Industries reported their third quarter 2008 financial results. Despite challenges like hurricanes, an auto industry slowdown, and higher costs, PPG achieved double-digit sales and earnings growth in most business segments. They completed the sale of their automotive glass business and announced a restructuring to reduce costs. Strong cash generation allowed them to reduce debt by over $650 million for the year so far.
PPG Industries reported financial results for Q4 2008 and full year 2008. Q4 was challenging with dramatic volume declines in automotive OEM and industrial end markets due to the global economic slowdown. However, other segments delivered solid results. For the full year, PPG set a new sales record of $16 billion and achieved strong cash flow generation, debt repayment, and exceeded expectations for the SigmaKalon acquisition. However, adjusted EPS was down over 10% due to Q4 results. PPG is well positioned for economic challenges in 2009 with a strong cash position and minimal debt maturities.
CSX reported first quarter earnings results. Surface transportation revenues increased 10% to $2.1 billion due to an 8.6% increase in revenue per car. Operating expenses increased only 2% through operations and management productivity. Surface transportation operating income increased 72% and drove a 152% increase in earnings per share. Looking forward, CSX expects tougher comparables but their foundation of strategies and financial improvements provide confidence.
BGC Partners held an earnings presentation for Q2 2015. The presentation included the following key points:
- Revenues for Q2 2015 were $684.6 million, up 59.1% from Q2 2014, with pre-tax distributable earnings of $77.5 million, up 46.3%.
- Financial services revenues were $435 million, up over 60% due to the consolidation of GFI Group, while real estate revenues were $239.7 million, up 61%.
- BGC maintains a diverse revenue base across different asset classes and geographies to reduce risk.
Q22015 earnings presentation v final (working version)irbgcpartners
BGC Partners reported financial results for the second quarter of 2015. Revenues increased 59% compared to the second quarter of 2014, driven by the consolidation of GFI Group. Financial services revenues grew over 60% and pre-tax profits increased over 37% compared to the prior year. Volatility levels increased across most asset classes, which typically drives increased demand for hedging. The strengthening US dollar negatively impacted non-US revenues.
- Kellogg reported third quarter 2012 net sales of $3.72 billion, up 12.3% year-over-year. Internal growth was 2.8%.
- North America sales increased due to strong performance in snacks and specialty channels. Morning Foods & Kashi grew internally 5.4% due to cereal and Pop-Tarts.
- Europe sales trends improved sequentially. Latin America declined due to inventory reductions but Asia Pacific grew.
- Operating profit was $479 million, up 3.2% year-over-year due to commodity inflation and recall costs. Integration of Pringles is proceeding as expected.
Corning Inc. reported strong financial performance in its 2007 Annual Report. Net income reached an all-time high of $2.15 billion, up 16% from 2006. Sales increased 13% to $5.86 billion, driven by high demand for LCD glass and new diesel filtration products. Corning also achieved records for earnings per share at $1.34 and operating cash flow at $2.1 billion. The report discusses Corning's strategy of focusing on innovation to drive growth, maintaining financial stability, and improving business portfolio balance. Key accomplishments in 2007 included expanding LCD glass capacity and developing innovations in optical fiber and life sciences technologies.
PPG Industries reported strong financial performance in the second quarter of 2008. Sales grew 42% to a record $4.4 billion due to acquisition and organic growth. Segment earnings increased 18% despite inflationary pressures. Price increases contributed to growth, offsetting weak demand in automotive and construction. The company expects moderating growth and higher prices to offset costs in the third quarter.
- Dover Corporation reported record first quarter revenue, earnings, and bookings. Revenue increased 18% year-over-year to $1.8 billion and earnings per share grew 5% to $0.67.
- Segment margins declined 210 basis points to 13.0% due to weaker performance in Automation & Test end-markets and higher costs. However, organic growth was 3.8% and acquisition growth was 12.0%.
- Free cash flow decreased 82% to $16.7 million due to higher compensation and benefits payments, taxes, and capital expenditures. The company expects full-year free cash flow to be 8-10% of revenue.
Jagran Prakashan reported mixed quarterly results, with top-line growth of 12% driven by a 13% rise in advertising revenue, while margins contracted due to higher newsprint costs. Earnings grew 10% aided by a spike in other income. While the company expects 17-18% advertising revenue growth for FY2011, analysts maintain a buy rating due to strong long term growth prospects and attractive valuations following the company's acquisition of Mid-Day's print business.
Caterpillar reported record quarterly sales, revenues, and profits in Q2 2008 driven by strong growth outside of North America. Specifically:
- Sales and revenues increased 20% to a record $13.6 billion compared to Q2 2007. Profits increased 34% to a record $1.1 billion.
- 60% of sales came from outside North America, up from 55% a year ago, as growth outside North America was 30% compared to 7% inside North America.
- The company increased its full-year outlook for sales to about $50 billion (from a previous range of $47.2-49.5 billion) and profits to about $6 per share (from
air products & chemicals Q4 FY 08 earningsfinance26
- Air Products reported fiscal Q4 EPS from continuing operations of $1.26, up 10% from $1.15 in the prior year on an adjusted basis. Fiscal year 2008 sales increased 14% to $10.4 billion and income from continuing operations grew 16% to $1.1 billion.
- For fiscal year 2009, Air Products expects EPS to be in the range of $5.10 to $5.35, representing year-over-year earnings growth on a continuing operations basis of 1% to 6%.
This document is a financial supplement from Genworth Financial for the second quarter of 2007. It includes sections on net income, balance sheets, investments and sales by business segment. Some highlights include:
- Net income for various periods including the second quarter of 2007 and comparisons to prior years.
- Balance sheet information as of June 30, 2007 with comparisons to prior quarters. Total stockholders' equity excluding other comprehensive income was $12.4 billion as of Q2 2007.
- Sales and revenue information by business segment including Retirement and Protection, International, and U.S. Mortgage Insurance for the second quarter and comparisons to prior quarters.
- Kodak's net sales decreased 7% in Q2 2007 compared to Q2 2006, primarily due to declines in volumes and prices across many business units. However, gross profits increased 14% due to cost reductions.
- Digital revenues increased 3% led by enterprise solutions, while traditional revenues declined 17% due to declines in film capture and retail printing.
- Consumer Digital Imaging Group sales declined 10% due to volume and price declines, but gross profits increased 23% due to cost reductions.
- Film Products Group sales declined 15% due to declines in consumer film capture, but gross profits declined only slightly.
Danaher Corporation announced its third quarter 2002 results, reporting a 32% increase in net earnings to $116.0 million compared to third quarter 2001. Diluted earnings per share increased 25% year-over-year to $0.74. Total sales for the quarter grew 28% to $1,151.7 million, driven primarily by acquisitions completed in the first quarter of 2002. For the first nine months of 2002, net earnings were $128.7 million which included a $173.8 million one-time non-cash charge related to goodwill impairment. Excluding this charge, nine month net earnings were up 14% to $302.4 million compared to the same period in 2001.
This document provides a summary of Eastman Kodak's first quarter 2007 earnings call.
1) Kodak reported revenue that was essentially on plan for the quarter, with earnings from operations slightly ahead of plan. Traditional revenues declined less than expected while digital revenues were on plan.
2) Kodak saw strong demand for its new line of consumer inkjet printers and will increase investments in this business.
3) Graphic communications saw some new product launches but digital revenue growth was below projections.
4) SG&A expenses declined significantly year-over-year, putting Kodak on track to meet full-year targets. Restructuring activities also progressed according to plan.
Danaher Corporation announced record results for its second quarter and first six months of 2006. Net earnings for the second quarter were $315 million, a 40% increase over the previous year. Sales for the second quarter were $2.35 billion, up 21.5% compared to the previous year. The company's CEO stated that strong core revenue growth across all three reporting segments contributed to the positive results and reinforced confidence for the second half of the year.
Kodak reported its first quarter 2006 earnings. The company faced higher than normal inventory in its consumer digital business due to fourth quarter price reductions. Its graphic communications business performed better than expected. Film and photofinishing revenue declined as expected but earnings were slightly better than planned.
Kodak also announced it would pursue strategic alternatives for its health business and restructure its global manufacturing and logistics operations. It will reduce corporate costs by retiring three senior officers and realigning organizational entities to further its transformation to a digital company.
The document is Genworth Financial's 2004 annual report. It provides financial information for 2004 including total assets of $103.9 billion, net earnings from continuing operations of $1,145 million, and net earnings per share of $2.33. It also lists pro forma financial results. The letter to shareholders discusses Genworth's opportunities in protection, retirement income, and mortgage insurance. It outlines Genworth's mission to help individuals financially through these shifting times. The letter also discusses Genworth's financial strength, growth opportunities, challenges, and focus on creating shareholder value.
Kodak reported that for the second quarter they were on plan for revenue and ahead of plan for earnings, with digital revenue growth beginning to accelerate. The company also discussed progress in various business units, with the Film Products Group exceeding expectations and the Consumer Digital Imaging Group showing improvements in digital revenue and margins. Kodak reaffirmed its commitment to achieving its full-year goals and financial targets.
- The document is the transcript from Eastman Kodak's fourth quarter 2007 earnings call.
- Kodak achieved all of its key strategic goals for 2007, including 8% digital revenue growth. Net cash generation was $333 million, above its $200 million goal.
- All of Kodak's major business segments - Graphic Communication Group, Film Products Group, and Consumer Digital Imaging Group - met or exceeded their financial targets for the quarter and year. Kodak has now completed its large corporate restructuring and established a sustainable business model.
- Kodak reported its second quarter 2006 sales and earnings results in an August 1, 2006 conference call.
- Key highlights included achieving aggressive cash goals for the quarter, film and photofinishing achieving 10% operating margins, and health group margins recovering to the low teens range. Digital earnings turned positive in the second quarter, ahead of expectations.
- While some segments like consumer digital were behind plans, overall results demonstrated continued progress in Kodak's transformation and execution of its digital strategy. Management remained confident in achieving full-year financial targets.
- Kodak reported third quarter 2006 earnings. Digital earnings grew $98 million year-over-year while traditional earnings declined $48 million, marking the first time digital growth exceeded traditional decline.
- Consumer digital group became profitable, with earnings of $24 million versus a loss of $61 million last year. Gross profit improved across major product lines.
- Cash position improved, ending the quarter with $1.1 billion versus $610 million last year. Management remains confident in guidance targets for digital earnings and investable cash.
- 1,650 additional positions were eliminated, bringing total job cuts to over 22,200 as restructuring continues. Restructuring costs for the year are now estimated at $1 billion
- Kodak reported financial results for the 4th quarter of 2006. While digital revenue growth was lower than planned, digital earnings increased nearly 5x year-over-year and other goals like net cash generation were met.
- Consumer digital earnings improved 110% year-over-year due to better performance from Kodak Gallery, kiosks and licensing deals. Graphic communications doubled earnings through growth in digital plates, presses and workflow products.
- Gross profit margin improved 3.4 percentage points to 26.4% due to segment margin growth, lower restructuring charges, and cost improvements. However, silver and aluminum price increases partially offset these gains.
Kodak reported financial results for the first quarter of 2007. Revenue declined 8% to $2.119 billion due to lower sales in digital capture and traditional businesses. The net loss improved 50% to $174 million due to cost reductions of $112 million in SG&A expenses. Kodak ended the quarter with $1.026 billion in cash and fully repaid $1.15 billion in debt after completing the sale of its Health Group. Kodak plans to increase its 2007 inkjet investment by up to $50 million to capitalize on strong demand for its new line of inkjet printers.
- In 2006, Kodak achieved several important milestones in its digital transformation, including digital earnings exceeding declines in traditional business for the first time, and securing over 680 new patents.
- Kodak's Graphic Communications Group has grown substantially in recent years, with over 100,000 customers worldwide and $3.6 billion in revenue, and around 40% of the world's commercially printed pages now touching Kodak technology.
- Kodak's Consumer Digital Imaging Group continues to be a market leader in key segments like digital cameras and printers, and is well positioned to launch new products and technologies to achieve profitable growth.
- In 2006, Kodak achieved several important milestones in its digital transformation, including digital earnings exceeding declines in traditional business for the first time, and securing over 680 new patents.
- Kodak's Graphic Communications Group has grown substantially in recent years, with over 100,000 customers worldwide and $3.6 billion in revenue, and around 40% of the world's commercially printed pages now touching Kodak technology.
- Kodak is well positioned for continued progress and growth in 2007 with the planned launch of new products and a focus on reducing costs while completing its restructuring efforts.
Eastman Kodak Company reported financial results for the fourth quarter and full year of 2007. Key highlights include:
- Q4 earnings of $92 million, up from a $15 million loss in the year-ago period. Digital revenue grew 15% in Q4 driven by growth in all digital businesses.
- The company met or exceeded all 2007 financial goals including an 8% increase in digital revenue, $176 million in digital earnings, and $333 million in net cash generation.
- Sales totaled $3.22 billion for Q4, up 4% from the prior year. Digital revenue was $2.26 billion, up 15%, while traditional revenue declined 15%.
-
This document is Kodak's 2005 annual report and proxy statement. It discusses Kodak's transition to digital technologies and summarizes its performance in key business areas. Some highlights include:
- Kodak retained the #1 market position for digital cameras in the US and reached #2 worldwide. It also led the market for photo kiosks and online photo services.
- Acquisitions expanded Kodak's graphics business, which now offers the industry's broadest range of prepress, printing, and document solutions.
- In healthcare, Kodak grew its digital solutions and secured large contracts for medical imaging and archiving systems.
- Going forward, Kodak aims
Kodak reported improved first-quarter results, with digital revenue up 10% to $1.366 billion. The company reduced its loss from continuing operations by 35% compared to the prior year. While traditional revenue declined 13%, overall sales increased slightly to $2.093 billion. Kodak reaffirmed its full-year guidance for revenue growth, earnings, and cash generation.
Kodak reported significantly improved second quarter operating results with a $121 million year-over-year improvement in pre-tax results from continuing operations. Digital earnings improved by $97 million and traditional earnings improved by $31 million as expenses declined. Gross profit margins increased across all major business units driven by reduced costs. Kodak reaffirmed its full-year goals for net cash generation, digital revenue growth, and digital earnings.
Motorola held a conference call to discuss its first quarter 2002 earnings. In his opening remarks, Chris Galvin provided an overview of Motorola's strategic plan and highlighted recent leadership changes. He noted continued progress strengthening management and focusing on the balance sheet. Ed Gams then reviewed key financial results, including a year-over-year decline in sales but an improved gross margin. Mike Zafirovski discussed the Personal Communications Sector results, including year-over-year growth in unit shipments and operating earnings despite a reduction in inventory levels.
Kodak reported financial results for the first quarter of 2006. Revenue increased 2% to $2.889 billion led by a 29% increase in digital sales. However, the company reported a net loss of $298 million due to restructuring charges and rising costs. Digital earnings improved from a loss of $51 million in the same period last year. The company reaffirmed its targets for 2006 of increasing digital earnings and revenue while generating cash.
- Intuit reported financial results for Q4 and full fiscal year 2020. Revenue grew to $1.8 billion in Q4, up from $994 million in the prior year. Revenue from the Consumer Group was $710 million, while the Small Business and Self-Employed Group revenue increased 16% to $1.0 billion.
- For the full fiscal year, revenue grew 13% to $7.1 billion. Net income increased 28% to $2.0 billion.
- Intuit expects revenue growth of 6-8% for fiscal year 2021, driven by growth across its business segments and continued innovation.
Kodak reported a profit of $34 million in the third quarter, up $117 million from the previous year. Digital revenues grew 12% due to increases in digital plates, presses, and consumer products. The company's debt was reduced by $1.152 billion from the previous year. Kodak expects digital revenue growth to be at the high end of 3-5% for 2007 and total revenue decline to be at the low end of 4-7%.
- PAX Global Technology reported strong financial results for 2020, with revenue and net profit reaching record highs. Revenue increased 14.7% driven by strong overseas growth, while net profit increased 44.3%.
- Android products contributed over 30% of revenue and the company shipped nearly 2 million Android units in 2020.
- The company increased its proposed dividend by 67% and declared a special 10th anniversary dividend, bringing the total dividend payout ratio to 33% for 2020. The company also conducted 12 share repurchases during the year.
- Symantec held an earnings call to discuss its fiscal second quarter 2009 results. The call included comments from the CEO, COO, and CFO.
- While revenue grew year-over-year, softness in the retail sector and IT spending slowdown impacted results. Currency fluctuations also negatively affected revenue.
- However, storage, backup, archiving, and large enterprise deals performed well. New products were also highlighted.
- Margins increased through cost savings and efficiencies. Guidance was updated to reflect economic uncertainties.
The document summarizes Symantec's fiscal second quarter 2009 earnings conference call. It introduces the speakers and outlines that John Thompson will provide high-level comments on the company's performance, Enrique Salem will discuss quarterly highlights, and James Beer will review the financials and guidance. Thompson notes growth in revenue and margins despite economic challenges. Salem highlights softness in retail but growth in electronic sales for consumer security products. Beer will review the financial results and updated guidance.
- 20-20 Technologies reported its second quarter results, with revenues up 13.2% to $17.2 million compared to the previous year. EBITDA also increased to $2.7 million, up from $2.3 million last year.
- Net income was $273,000 for the quarter, impacted by foreign exchange losses. The company maintained a strong balance sheet with $22.7 million in cash and cash equivalents.
- The CEO commented that while the second quarter showed positive signs, the company remains cautiously optimistic due to the situation in Europe and continued focus on smaller clients. The home sector growth is expected to continue with signs of recovery in manufacturing.
This document is EchoStar Communications Corporation's annual report on Form 10-K for the fiscal year ending December 31, 1999. It provides information on EchoStar's business operations, legal proceedings, risks to its business, financial statements and other required disclosures. EchoStar operates a direct broadcast satellite subscription television service in the United States called DISH Network, which had approximately 3.4 million subscribers as of December 31, 1999. It also provides digital set-top boxes and other equipment to international direct-to-home service providers.
This document is EchoStar Communications Corporation's annual report on Form 10-K for the fiscal year ended December 31, 2000 filed with the Securities and Exchange Commission. It summarizes EchoStar's business operations, including its DISH Network direct broadcast satellite television service, technologies division, and satellite services business unit. It provides an overview of the components and technology behind EchoStar's DISH Network service, including its programming offerings, equipment requirements, and conditional access system for encryption/security. Financial data and other required disclosures are also included as required by the SEC.
This document is EchoStar Communications Corporation's annual report on Form 10-K for the fiscal year ending December 31, 2001 filed with the SEC. It provides an overview of EchoStar's businesses, including its DISH Network direct broadcast satellite television service and EchoStar Technologies equipment sales. It summarizes EchoStar's proposed merger with Hughes Electronics Corporation, which is subject to various regulatory approvals and conditions, including IRS and shareholder approval. If completed, the merger would create a new public company providing satellite TV services and technologies globally.
This document is EchoStar Communications Corporation's annual report on Form 10-K for the fiscal year ending December 31, 2002 filed with the SEC. It provides an overview of EchoStar's business including its DISH Network direct broadcast satellite television service and EchoStar Technologies equipment manufacturing business. It discusses EchoStar's programming packages, sales and marketing strategies, satellite fleet, technology, competition, regulation, legal proceedings, and financial results.
EchoStar Communications Corporation experienced significant growth in 2003, crossing the 9 million subscriber milestone for its DISH Network satellite television service. The company launched its ninth satellite and released several new receiver products, including those supporting high-definition television and digital video recording. Financially, EchoStar achieved $5.7 billion in revenue and $225 million in earnings, while reducing debt through bond issuances and retirements. Going forward, the company plans to continue expanding its offerings in areas like international programming and high-definition television.
- DISH Network added 1.48 million subscribers in 2004, surpassing 10 million subscribers in June 2004 and finishing the year with 10.9 million subscribers.
- DISH Network generated $7.15 billion in revenue in 2004, with earnings of $215 million and $21 million in free cash flow.
- DISH Network continues to focus on growing its subscriber base and developing additional services, and expects to launch its 10th satellite in early 2006 to increase channel offerings and capacity.
- DISH Network celebrated its 10th anniversary in 2005 and reported over $8.4 billion in revenue for the year, serving over 12 million customers.
- The company increased its net subscriber base by over 1.1 million customers in 2005 and remains the clear leader in international programming.
- Looking forward, the company plans to leverage its position as an HD leader by offering local HD channels in up to 30 markets by the end of the year using its new EchoStar X satellite.
dish network 2007 Notice and Proxy Statementfinance24
- The document is a letter from the Chairman and CEO of EchoStar Communications Corporation inviting shareholders to attend EchoStar's 2007 Annual Meeting of Shareholders on May 8, 2007.
- It provides details on the location, time, and agenda items to be voted on at the meeting, including the election of 10 directors and the ratification of the appointment of KPMG LLP as the independent auditor.
- Shareholders are encouraged to vote by proxy whether attending the meeting or not to ensure their votes are counted, and they are thanked for their support and interest in EchoStar.
Danaher Corporation reported quarterly and annual sales and operating margin data for its Tools and Controls segments for an unaudited period. The Tools segment saw annual sales of $1.16 billion while the Controls segment generated $2.62 billion in annual sales. On an annual basis before restructuring, operating margins were 13.49% for Tools and 16.54% for Controls. After restructuring, the annual operating margin fell to 11.31% for Tools and 14.85% for Controls.
Danaher Corporation reported its fourth quarter and full year 2001 results. For the fourth quarter, net earnings excluding restructuring charges were $76.6 million compared to $87.8 million in 2000. Full year 2001 net earnings excluding restructuring charges were $341.2 million, a 5% increase over 2000. However, Danaher recorded a $69.7 million restructuring charge in the fourth quarter related to manufacturing facility consolidations. For the full year, net earnings including restructuring charges were $297.7 million. Despite difficult economic conditions, Danaher was able to grow earnings in 2001 through aggressive cost reductions and restructuring actions.
Danaher Corporation announced its third quarter 2001 results, reporting a 5% increase in net income to $87.7 million compared to $83.6 million in third quarter 2000. Third quarter sales were down 8.6% to $901.6 million due to weakness in the industrial economy. For the first nine months of 2001, net earnings increased 12% to $264.6 million on 4% higher sales of $2.86 billion compared to the same period in 2000. The CEO stated that aggressive cost control allowed for earnings growth despite softness in the economy and that Danaher will maintain a strict cost focus while economic conditions remain uncertain.
Danaher Corporation announced its second quarter 2001 results, with record net earnings of $94.2 million, up 16% from the previous year. Revenue was also up 7% to $956.6 million. For the six month period, net earnings reached a record $176.8 million, up 16% and revenue was up 11.5% to $1.962 billion. While sales growth was strong, a slowing domestic economy negatively impacted some product lines, leading to a 4.5% decline in core sales volume. However, aggressive cost cutting measures helped boost earnings per share by 12.5% for the quarter.
Danaher Corporation announced record results for the first quarter of 2001 with net earnings of $82.6 million, a 15% increase over the same period in 2000. Diluted earnings per share were $0.56, up 14% from 2000. Sales increased 16% to $1,005.3 million due to acquisitions. While core volume declined in the tools and components segment due to a weak domestic economy, cost containment measures helped drive record operating profit. The company expects continued outperformance in 2001 despite economic uncertainty.
- Danaher Corporation reported record results for the fourth quarter and full year 2002, with net earnings of $161.7 million and $290.4 million respectively.
- Fourth quarter sales increased 39% to $1.275 billion compared to $918.9 million in 2001. Full year sales grew 21% to $4.577 billion.
- The strong results were driven by acquisitions and 3.5% core volume growth, although the tools and components segment declined slightly.
Danaher Corporation announced its second quarter 2002 results, with net earnings of $103.7 million, a 10% increase over the second quarter of 2001. Earnings per share increased 5% to $0.66. Sales for the quarter increased 20% to $1.146 billion due primarily to recent acquisitions. For the first six months of 2002, net earnings were $12.7 million after a one-time $173.8 million goodwill impairment charge, but were up 5% excluding this charge at $186.4 million, with sales up 10% to $2.15 billion. The CEO stated they were pleased with the results and optimistic about continued improvement for the rest of the year.
Danaher Corporation announced its first quarter 2022 results. Net earnings were $82.7 million, comparable to the previous year's results. However, after adopting a new accounting standard that eliminated goodwill amortization, earnings per share fell 14% compared to the previous year. The company also recorded a $173.8 million charge related to goodwill impairment in some business units. Total sales were relatively flat at $1,004.2 million. The CEO commented that while core volumes declined 15% due to economic challenges, the company has seen signs of stability in revenues and gives a more positive outlook for the rest of the year.
Danaher Corporation provided a document summarizing its selling, general and administrative costs, operating profit, and free cash flow for the quarter and year ended December 31, 2003. Some key highlights include:
- Total company revenue for the quarter increased 16.7% to $1.49 billion compared to the same quarter last year.
- Operating profit before special credits for the total company was $239.6 million for the quarter, up 20.1% from the prior year.
- Free cash flow for the year was $781.2 million, up 21.1% from 2002.
Danaher Corporation reported record results for the fourth quarter and full year 2003. Net earnings for Q4 2003 were $169.9 million, or $1.06 per share, compared to $161.7 million, or $1.03 per share for Q4 2002. For the full year, net earnings were $536.8 million or $3.37 per share compared to $290.4 million or $1.88 per share for 2002. Sales increased 17% in Q4 2003 to $1.49 billion and grew 16% for the full year to $5.29 billion. The company experienced strong growth in both its process/environmental controls and tools/components segments.
This document from Danaher Corporation provides supplemental financial information including free cash flow and debt ratios for quarters ending in March, June, and September 2003 as well as year-to-date figures. Free cash flow is defined as operating cash flow minus capital expenditures and is a measure of available cash. Debt ratios including debt-to-total capital and net debt-to-total capital are also provided to show Danaher's leverage over time. Management believes these metrics provide useful information to investors and help determine borrowing capacity.
Danaher Corporation announced record third quarter results for 2003, with net earnings of $138.6 million, a 19% increase over the previous year. Diluted earnings per share were $0.87, an increase of 18% from 2002. Sales increased 14% to $1.309 billion. For the first nine months of 2003, net earnings were $366.9 million, a 21% increase over the previous year. The company's CEO stated that they achieved strong earnings growth despite a challenging economy, and that organic growth remains a priority along with cost reductions to fund growth opportunities.
Poonawalla Fincorp’s Strategy to Achieve Industry-Leading NPA Metricsshruti1menon2
Poonawalla Fincorp Limited, under the leadership of Managing Director Abhay Bhutada, has achieved industry-leading Gross Non-Performing Assets (GNPA) below 1% and Net Non-Performing Assets (NNPA) below 0.5% as of May 31, 2024. This success is attributed to a strategic vision focusing on prudent credit policies, robust risk management, and digital transformation. Bhutada's leadership has driven the company to exceed its targets ahead of schedule, emphasizing rigorous credit assessment, advanced risk management, and enhanced collection efficiency. By prioritizing customer-centric solutions, leveraging digital innovation, and maintaining strong financial performance, Poonawalla Fincorp sets new benchmarks in the industry. With a continued focus on asset quality, digital enhancement, and exploring growth opportunities, the company is well-positioned for sustained success in the future.
PFMS, India's Public Financial Management System, revolutionizes fund tracking and distribution, ensuring transparency and efficiency. It enables real-time monitoring, direct benefit transfers, and comprehensive reporting, significantly improving financial management and reducing fraud across government schemes.
How to Invest in Cryptocurrency for Beginners: A Complete GuideDaniel
Cryptocurrency is digital money that operates independently of a central authority, utilizing cryptography for security. Unlike traditional currencies issued by governments (fiat currencies), cryptocurrencies are decentralized and typically operate on a technology called blockchain. Each cryptocurrency transaction is recorded on a public ledger, ensuring transparency and security.
Cryptocurrencies can be used for various purposes, including online purchases, investment opportunities, and as a means of transferring value globally without the need for intermediaries like banks.
Navigating Your Financial Future: Comprehensive Planning with Mike Baumannmikebaumannfinancial
Learn how financial planner Mike Baumann helps individuals and families articulate their financial aspirations and develop tailored plans. This presentation delves into budgeting, investment strategies, retirement planning, tax optimization, and the importance of ongoing plan adjustments.
Heather Elizabeth HamoodHeather Elizabeth Hamoodheatherhamood
Heather Hamood is a Licensed Physician who enjoys playing the Violin in her spare time. In addition to helping people as a Doctor, she loves to share her passion for the violin.
Vadhavan Port Development _ What to Expect In and Beyond (1).pdfjohnson100mee
The Vadhavan Port Development is poised to be one of the most significant infrastructure projects in India's maritime history. This deep-sea port, located in Maharashtra, promises to transform the region's economic landscape, bolster India's trade capabilities, and generate a plethora of employment opportunities. In this blog, we will delve into the various facets of the Vadhavan Port Development: what to expect in and beyond its completion, and how it stands to influence the future of India's maritime and economic sectors.
13 Jun 24 ILC Retirement Income Summit - slides.pptxILC- UK
ILC's Retirement Income Summit was hosted by M&G and supported by Canada Life. The event brought together key policymakers, influencers and experts to help identify policy priorities for the next Government and ensure more of us have access to a decent income in retirement.
Contributors included:
Jo Blanden, Professor in Economics, University of Surrey
Clive Bolton, CEO, Life Insurance M&G Plc
Jim Boyd, CEO, Equity Release Council
Molly Broome, Economist, Resolution Foundation
Nida Broughton, Co-Director of Economic Policy, Behavioural Insights Team
Jonathan Cribb, Associate Director and Head of Retirement, Savings, and Ageing, Institute for Fiscal Studies
Joanna Elson CBE, Chief Executive Officer, Independent Age
Tom Evans, Managing Director of Retirement, Canada Life
Steve Groves, Chair, Key Retirement Group
Tish Hanifan, Founder and Joint Chair of the Society of Later life Advisers
Sue Lewis, ILC Trustee
Siobhan Lough, Senior Consultant, Hymans Robertson
Mick McAteer, Co-Director, The Financial Inclusion Centre
Stuart McDonald MBE, Head of Longevity and Democratic Insights, LCP
Anusha Mittal, Managing Director, Individual Life and Pensions, M&G Life
Shelley Morris, Senior Project Manager, Living Pension, Living Wage Foundation
Sarah O'Grady, Journalist
Will Sherlock, Head of External Relations, M&G Plc
Daniela Silcock, Head of Policy Research, Pensions Policy Institute
David Sinclair, Chief Executive, ILC
Jordi Skilbeck, Senior Policy Advisor, Pensions and Lifetime Savings Association
Rt Hon Sir Stephen Timms, former Chair, Work & Pensions Committee
Nigel Waterson, ILC Trustee
Jackie Wells, Strategy and Policy Consultant, ILC Strategic Advisory Board
CRYPTOCURRENCY REVOLUTIONIZING THE FINANCIAL LANDSCAPE AND SHAPING THE FUTURE...itsfaizankhan091
Cryptocurrency, a digital or virtual form of currency that uses cryptography for security, has revolutionized the financial landscape. Originating with Bitcoin's inception in 2009 by the pseudonymous Satoshi Nakamoto, cryptocurrencies have grown from niche curiosities to mainstream financial instruments, reshaping how we think about money, transactions, and the global economy.
The birth of Bitcoin marked the beginning of the cryptocurrency era. Unlike traditional currencies issued by governments and controlled by central banks, Bitcoin operates on a decentralized network using blockchain technology. This technology ensures transparency, security, and immutability of transactions, fundamentally challenging the centralized financial systems that have dominated for centuries.
Bitcoin was conceived as a peer-to-peer electronic cash system, aimed at providing an alternative to the traditional banking system plagued by inefficiencies, high fees, and lack of transparency. The underlying blockchain technology, a distributed ledger maintained by a network of nodes, ensures that every transaction is recorded and cannot be altered, thus providing a secure and transparent financial system.
June 20, 2024
CRYPTOCURRENCY: REVOLUTIONIZING THE FINANCIAL LANDSCAPE AND SHAPING THE FUTURE
Cryptocurrency: Revolutionizing the Financial Landscape and Shaping the Future
Cryptocurrency, a digital or virtual form of currency that uses cryptography for security, has revolutionized the financial landscape. Originating with Bitcoin's inception in 2009 by the pseudonymous Satoshi Nakamoto, cryptocurrencies have grown from niche curiosities to mainstream financial instruments, reshaping how we think about money, transactions, and the global economy.
#### The Genesis of Cryptocurrency
The birth of Bitcoin marked the beginning of the cryptocurrency era. Unlike traditional currencies issued by governments and controlled by central banks, Bitcoin operates on a decentralized network using blockchain technology. This technology ensures transparency, security, and immutability of transactions, fundamentally challenging the centralized financial systems that have dominated for centuries.
Bitcoin was conceived as a peer-to-peer electronic cash system, aimed at providing an alternative to the traditional banking system plagued by inefficiencies, high fees, and lack of transparency. The underlying blockchain technology, a distributed ledger maintained by a network of nodes, ensures that every transaction is recorded and cannot be altered, thus providing a secure and transparent financial system.
#### The Proliferation of Altcoins
Following Bitcoin's success, thousands of alternative cryptocurrencies, or altcoins, have emerged. Each of these altcoins aims to improve upon Bitcoin or serve specific purposes within the digital economy. Notable examples include Ethereum, which introduced smart contracts – self-executing contracts with the terms of the agreement
ITES KPO BPO IT sector in the country has increased at an incredible rate o...yashwanthkumar517728
ites KPO and BPO,IT sector in the country has increased at an incredible rate of 35% per year for the last 10 years reinforces the view that India is world class in IT
The IT sector is one of the largest employers of women, and therefore, can play a crucial role in women empowerment and the reduction of gender inequalities.
ITES KPO BPO IT sector in the country has increased at an incredible rate o...
eastman kodak 1Q 08_Transcript
1. EASTMAN KODAK
1Q08 Sales & Earnings
May 1, 2008
Operator: Good day everyone and welcome to the Eastman Kodak first quarter
sales and earnings and conference call. Today's conference is being
recorded.
At this time for opening remarks and introductions, I'd like to turn the
conference over to the Director and Vice-President of Investor Relations,
Ms. Ann McCorvey. Please go ahead.
Ann McCorvey: Good morning and welcome to our discussion of the first quarter sales
and earnings. I'm here this morning with Antonio Perez, Kodak Chairman
and CEO, as well as Chief Financial Officer, Frank Sklarsky. Antonio will
begin this morning with his observations on the quarter and then Frank
will provide a review of the quarterly financial performance.
As usual, before we get started, I have some housekeeping activity to
complete. Certain statements in this presentation maybe forward looking
in nature or forward looking statements as defined in the United States
Private Security Legislation Act of 1995; for example, reference to the
company 's expectations for investment in consumer inkjet, distribution
expansion, impact of commodity and raw material costs, new product
rationalization charges, depreciation, taxes, cash, segment and total
company revenue, revenue growth, earning and earnings growth are
forward-looking statements. These forward-looking statements are
subject to a number of important risk factors and uncertainties, which are
fully enumerated in our press release this morning. Listeners are advised
to read these important cautionary statements in their entirety, as any
forward-looking statement needs to be evaluated in light of these
important factors and uncertainties.
Also, Kodak has significant reduced its references to non-GAAP
measures. In those instances where they are used, they are fully
reconciled to the nearest GAAP equivalent in this documentation released
this morning, which be also be found on the Web site.
Now, I'll turn the call over to Antonio Perez.
-1-
2. Antonio Perez: Thanks, Ann and good morning everyone.
2008 is off to good start, and it's a proof point that Kodak has returned to
growth.
Overall revenues grew one percent year-over-year, and our digit
businesses grew 10 percent. I am satisfied with our first quarter earnings
and cash performance, as they are right within our expectations given our
seasonality and that gives me confidence for the full 2008.
Let me put the $119 million improvement in loss from continuing
operations before taxes into perspective. The biggest driver of the
improvement was lowering restructuring charges of $161 million.
Operationally, our losses increased as we had a full quarters’ investment
in the placement of the consumer inkjet printer line, and we experienced
higher raw material cost. We were also negatively impacted by the
Hollywood writers’ strike, which is over now. The operational loss was
partially offset by earnings growth in both our digital cameras and digital
picture frames, where we continue to see the positive financial impact
from our world-class supply chain in our improved product design
capability. I'm comfortable we are making the right investment across the
company to fuel profitable growth.
In the first quarter, much of the cash used was related to planned
investments in new products and revenue growth for the year. As a
result, Kodak's first quarter net cash usage of $764 million was higher
than last year's first quarter. However, we remain confident in our plans
and our seasonality to deliver our full year net cash generation.
Frank will cover cash in more detail during his remarks.
Now, we will discuss the businesses. The Film, Photofinishing and
Entertainment group, FPEG was slightly ahead of plan and delivered
another quarter of solid earnings. While FPEG's results include a number
of positive and negative factors, it's important to highlight the negative
impact of the Hollywood writer's strike and higher raw material cost plus
the positive impact of a traditional asset useful life change. Our film
business continues to be an important contributor to Kodak's success
with a sustainable business model and continued product innovation. In
particular, I'm pleased with the significant customer acceptance of our
Vision 3 films during its first full quarter of sales. When combined with our
first quarter performance, it gives me confidence that FPEG will achieve
their full year goals.
Graphic Communications Group, GCG.
GCG's revenue was up four percent, driven by growth in annuities across
all of the product lines. With double digit growth in plates, workflow and
consumables for digital printing. However, our equipment sales declined
year-over-year, as we are seeing the typical first quarter's slowdown in
orders in anticipation of Drupa in Dusseldorf, Germany and will begin this
year at the end of May. Drupa will be a catalyst for revenue growth in the
second half.
-2-
3. It is a great opportunity to showcase Kodak as the only supplier with both
conventional and digital solutions within a unified workflow. We will be
highlighting over 25 new products from our prepress solutions, workflow
and digit printing product lines, with new offerings that bring offset class
quality, reliability, speed and cost.
GCG’s earnings from operations were slightly below plan, down $10
million versus the prior year first quarter, as the growth in revenue was
not enough to upset the increased R&D investment in commercial inkjet
and the unfavorable effect of raw materials. We will continue to monitor
raw material pricing and will raise prices where appropriate taking into
account customer and competitive situations.
We are maintaining full year revenue and earnings growth targets for
GCG. Consistent with the 2007 seasonality, amplified this year by the
DRUPA effect, we expect to see accelerating revenue growth in GCG as
we move through the year.
Now the Consumer Digital Imaging Group, CDG
CDG lead the way in Kodak's return to growth with revenues up 20
percent year-over-year. CDG's growth in the first quarter was driven by
digital cameras, digital picture frames and consumer inkjet products. The
comparison will become less favorable as we reach the anniversary date
of the introduction of consumer inkjet and digital picture frames, but as we
forecasted in February, we expect double-digit growth for CDG products
for full year 2008.
CDG ended the quarter ahead of plan for earnings from operations with a
loss of $111 million.
Within CDG, digital cameras and digital picture frames have solid
earnings improvement partially offsetting the year-over-year increase in
the investment of consumer inkjet. For the full year, we continue to expect
our investment in inkjet to be less than 2007 as we complete full ramp up
of this important product line.
We're pleased with the demand for our consumer inkjet products. As we
announced last week, we are adding new products from our lower cost
platform introduced in January and increasing our channel presence both
geographically and with new retailers. We are on track to achieve our full
year earnings target for CDG.
Now I will turn it over to Frank.
Frank Sklarsky: Thanks, Antonio and good morning, everyone.
I'll provide a bit more information around our first quarter financial results,
and then Antonio and I will be happy to take your questions.
-3-
4. As Antonio indicated, we're pleased with the company's performance in
the first quarter, which included total revenue growth of one percent and
digital revenue growth of 10 percent. Our overall financial results reflect a
few key dynamics; the impact of timing shifts in our digital equipment
placements in GCG, much of which is related to the anticipation of
products to be shown at DRUPA. In addition, we experienced some
headwinds associated with commodity costs and other raw material
increases. And, we were also impacted by the Hollywood writer's strike in
our Entertainment Imaging Group within FPEG. Our cash usage
consistent with our internal expectations was higher than in the prior year
due to a number of factors that I'll speak to in a few moments. That said,
we are confident in achieving our full year revenue, earnings and cash
commitments we shared at our February investor meeting.
For the first quarter, consolidated revenue grew by one percent including
a favorable foreign exchange impact of five percentage points.
Importantly, we continued to experience double-digit revenue growth in
our digital businesses. It's important to note that approximately 60
percent of our business is outside of the U.S., and although our revenues
are favorably impacted by foreign exchange, we have a substantial
international cost base so the impact of foreign exchange on the gross
profit line is less than one percent.
In the quarter, the company's gross profit margin decreased slightly to
about 20.3 percent from about 20.6 percent in the prior year. This
change is attributable largely to the mixed impact of substantially
increased units of consumer inkjet printers as compared to the prior year
when the product was first introduced, the impact of the Hollywood
writer's strike and FPEG along with continued unfavorable impacts of
increased commodities and other raw material costs. These effects were
partially offset by continued improvements in digital cameras and digit
picture frames and the impact of lower depreciation expense resulting
from a change in useful lives. As it looks today, higher commodity and
other raw material costs will continue to impact the company throughout
the year. The area remains volatile and only a portion of the impact can
be mitigated through hedging strategies.
Our SG&A decreased $9 million or two percent and improved about a half
a point as a percentage of sales to 18.4 percent. We continue to build to
the substantial structural cost reductions achieved in prior periods.
We had consolidated first quarter GAAP pre-tax losses from continuing
operations of $74 million versus $193 million in the year ago quarter, an
improvement of $119 million, mostly attributable to lower year-over-year
restructuring charges and continued reductions in SG&A.
As for restructuring, the company had minimal restructuring charges in
the first quarter which were more than offset by a $10 million net
curtailment credit. We do anticipate some level of rationalization charges
for the remainder of the year consistent with our guidance in February.
Our corporate cash payments related to restructuring for the quarter were
approximately $60 million.
-4-
5. On a segment basis, our Consumer Digital Imaging Group’s revenue
grew by 20 percent from $462 million to $554 million for the quarter, an
increase of $92 million. This was achieved on the strength of digital
cameras, digital picture frames and our consumer inkjet products.
The loss from operations increased by $36 million from $75 million in last
year's first quarter to $111 million loss this year. The year-over-year
decline in earnings, resulted largely from increased investment in our
Consumer Inkjet products including the launch of a new platform, partially
offset by improvements in profitability in digital cameras and digit picture
frames.
Taking a look at Graphic Communications, our GCG business grew
revenue by $29 million or four percent for the first quarter. This growth
was lower than our full-year growth target but in line with our seasonal
pattern. And we also saw some softness due to our customers
anticipating new product offerings to be rolled out at DRUPA.
As some of you know, in mid-year 2005, the company shortened the
useful life assumptions on most of its traditional manufacturing assets to
reflect the anticipated decline in the company's traditional film and paper
businesses. This operating assessment resulted in the useful lives of
these assets ending in mid 2010 for accounting purposes. Based upon
the performance of the business and our latest projection of market
trends, we have now concluded that, to varying degrees, the estimated
useful lives on these assets will be longer than previously anticipated.
This has resulted in a decrease in depreciation expense for the company
effective January 1st, 2008. As Antonio indicated, other factors aside,
this decrease in expense favorably impacted earnings from the first
quarter of 2008 by approximately $16 million. This accounting change
will result in a favorable impact on earnings for the entire year of about
$96 million.
With respect to results in FPEG, revenue declined by about 13 percent to
724 million. This reduction was due to the anticipated declines in film
capture, paper and photofinishing, along with the impact of the Hollywood
writer's strike on Entertainment Imaging. Year-over-year earnings
declined slightly by $4 million. This decline was largely due to lower
volumes in our consumer film business and the impact of the writer's
strike along with the negative impact of higher silver and other raw
material costs. This was partially offset by continued cost reduction
efforts and the previously mentioned benefit associated with the change
in useful lives.
-5-
6. As a result, Kodak reported a GAAP loss from continuing operations of
$114 million or 40 cents per share, an improvement of $61 million or 21
cents per share from the prior year loss of $175 million or 61 cents per
share. This improvement is largely attributable to lower year on year
restructuring costs offset by a higher tax provision in the current year
quarter. I would like to add a few additional comments on the tax
provision for the quarter. The company booked a net tax provision of $40
million in the first quarter. This is due primarily to losses in the U.S.,
which are not benefited, as well as taxes provided on earnings on many
of our international operations. We're still anticipating a book tax rate of
between 25 and 30 percent for the year and cash taxes in the range of
approximately $150 million, including the taxes due on gains from the
sale of Health Group and HPA from the prior year.
First quarter net cash generation reflected a use of $764 million,
compared to a use of $453 million in the year ago quarter, an increase of
$311 million. The year-over-year change is primarily attributable to higher
working capital including payments to suppliers related to fourth quarter
2007 revenue growth and increased inventory build in the first quarter in
anticipation of revenue growth in the second quarter and beyond. In
addition, increases in performance-based employee compensation and
case payments associated with a number of previously accrued tax items,
contractual obligations and legal settlements impacted the year over year
change.
Looking forward, we remain committed to achieving our previous
guidance for full year 2008 cash goals.
We ended the first quarter with about $2.2 billion in cash and cash
equivalents. Our debt stands at about $1.6 billion and we will pay about
$250 million in debt that is due in May. We continue to be pleased with
our strong balance sheet and the significant liquidity position it provides
us. And, in recognition of the progress we have, S&P recently improved
its outlook on the company to “stable”.
In summary, we will continue to drive toward achieving our financial
performance targets for the year including revenue, earnings from
operations and cash. As we continue to place more digital equipment on
both the consumer and commercial side, we're building a strong
foundation for an increasing annuities business for the future. While we
will continue to be challenged with higher commodity and other raw
material costs, we will be aggressive in our efforts to maintain a lean cost
model, drive working capital efficiency and evaluate product and pricing
opportunities.
Thanks very much. And now Antonio and I will happy to take your
questions.
-6-
7. Operator: Thank you. The question and answer session will be conducted
electronically. If you'd like to signal for a question, you may do so by
pressing the star key followed by the digit one on your touchtone
telephone. If you're using a speakerphone, please be sure to use your
mute function – I'm sorry, to turn off your mute function to allow your
signal to reach our equipment. Once again, that's star one for questions.
We'll take our first question from Matt Troy with Citigroup.
Matt Troy: Antonio, it's been about a year since the sale of the health care and the
proceeds. I was wondering if you could just give us an update to the
extent possible; one, I know an issue initially identified was it would take
some time to repatriate the cash. Has that been done to the effect it can
be?
And then, two, could you give us an update either your thought regarding
deployment of the cash or at least the process in your engagement with
the Board in that decision?
Antonio Perez: Not much changed from what I told you before, Matt. Some repatriation
has occurred, and the process continues, say, the first objective is to
invest in organic growth. You've obviously seen that this quarter. We
have DRUPA in front of us, and we have to put a lot of money behind that
and we continue to be investing aggressively in developing the consumer
inkjet business.
As far as usage for that extra cash, apart from the organic growth, we
obviously looking for opportunities with good returns for the company
outside for non-organic growth, and we keep looking very seriously at the
possibility of share repurchase. And this is a constant topic in our board
meetings, and we have external people helping us with ideas about what
to do, what is better for our shareholder, the timing of all of that, and when
we have more news, we will certainly let you know.
Matt Troy: OK. We'll stay tuned there. Quick question for Frank. On the
reassessment of the useful lives on the film assets, I understand that's a
non-cash, so we're really not talking about any difference in economic
earnings, but was just curious to the extent it is going to be a $96 million
benefit on the depreciation line, if I looked at your keeping your guidance
flat for EBITDA for the year, it would imply something else coming in
potentially a little bit weaker.
And again, I appreciate this is not a cash issue, but was wondering if I'm
understanding or framing that correctly and what is it that might be
coming in a little lighter on the EBITDA side, such that this $96 million lift
doesn't allow you to raise the guidance at this point.
Antonio Perez: Well, this is not Frank, as you probably know by now.. But given the
situation with the raw materials, which may or may not change.
Matt Troy: Right.
-7-
8. Antonio Perez: And due to the fact that there were rumors of another strike from actors it
looks like it's kind of softened now, we thought it was prudent at this time
not to do that. That doesn't mean that we may not change that later, but
at this time, there were enough up and downs that the first thing that we
thought we should give you was, that is the effect, and you have the
number.
If nothing else will change, if the raw materials will stay relatively
constant, then obviously this will, have a very important effect on the
earnings but not in the cash as you said. We just thought it was too early
to make that conclusion. We'll leave it up to you. We give you the data,
you can read through it. We thought it wasn't prudent to do right now.
Frank Sklarsky: And Matt, just one clarification because you mentioned the revaluation of
the film assets. I just want to make sure we understand that this was an
assessment of the assets that impact both the film business as well as
the paper business.
Matt Troy: Right.
Frank Sklarsky: Our internal teams been very diligent in finding ways to redeploy portions
of that traditional asset base toward using it for your digital businesses.
We make a portion of our ink at Kodak Park for the consumer inkjet
product. We also use some of these assets to produce thermal paper for
our growing kiosk and dry lab business. So that was all part of the
assessment and what gave us some more confidence looking out into the
future, along with the continued steady strength in entertainment imaging.
Matt Troy: Yeah. And absolutely and, you know, I think the longer view would say a
net positive that you can extract greater cash flow and economics from
those assets.
Antonio Perez: And let me explain, Matt, why we did it right now. I mean, when we faced
the decline of film in 2004 we've made our best assessment, and we
knew that we had to be aggressive with this, and we said, well, the best
data we have, suggests that 2010 would basically be the end of this.
Obviously, we had a very complicated manufacturing structure in which
some of those assets were used by several products. It was very difficult
to do anything but set the date for 2010 as the best information we have.
Today, obviously, the manufacturing structure is very clean. We know
what asset is used for what, so we went asset by asset and we did a
thorough analysis and, obviously, we know it's not going to go , away in
2010 so we added, depending on the asset, maybe one or two years to
that, which is the prudent thing and the right thing to do.
-8-
9. Matt Troy: Thank you. And the last question I had, Antonio, is just on inkjet. I think
the numbers we look at has you at a two, three, four percent market
share on sell through certainly one year in, a good number to be at. I
was wondering if you could just maybe expand on your learnings now that
you're a year deep. Has the competitive response been what you've
thought? Have you seen even a competitive response? And just looking
out 12, 18 months, you know, what's the share outlook from a Kodak
perspective? You've articulated 2010 and can you stick to those goals at
this point? And just talk about, I guess, just generally what you've
learned in this first year, both positively and on the challenge side.
Thanks.
Antonio Perez: We certainly stick to those goals. There are variety of learnings. The
response from our competitors, which there has been one. It wasn't so
much in products. We haven't seen that in the business model of the
products structure or the product design. What they have been is a lot
more aggressive in the channel. And, that was one of the options that
they had and an intelligent one, I guess, they made very competitive for
anybody to get room in the channel and get the right placements of ads at
the right time, there is a limited number of them, everyone fights for those.
And in that we've seen a very, very, serious response. We haven't seen
a response to our business model and our value proposition, not that we
expected to – them to have one because it's – I think it's a pretty
complicated thing for them to do for from our point of view.
For us this year, it's a critical year of introducing new products with the
low-cost platform. We came with the first platform was, obviously, you
can argue over design as you normally do with your first platform. You
want to make sure things are going to work, and the first time you make a
printer, you tend to over design and it's fine. Obviously, we needed to
move rapidly to a much lower cost structure with the same performance
or better performance. This is what we did, we introduced the first
product of this new platform in January. We just introduced the second,
and you're going to see more things coming this year, getting ready for
the big season. This is a very important year for us. We think we have
very good momentum. We think that slowly but surely the business
model is – has been realized by a lot of people, and I think that will play in
our favor.
Matt Troy: Excellent. Thank you for the detail as always.
Operator: Thank you. Our next question comes from Jay Vleeschhouwer with
Merrill Lynch.
Woo Jin Ho: Hi. Good morning. This is Woo Jin Ho for Jay Vleeschhouwer.
Woo Jin Ho: First, with respect to the inventory build in the first quarter. We
understand that it's being built to help fulfill the expanded distribution for
the consumer inkjet. But, still, what are your expectations for inventory
turns? And how many inkjet sales needed to fill the channel; especially,
given the apparent near-term risk to consumer spending?
-9-
10. Frank Sklarsky: Well, without going into any specific details on turns for individual
products, we are striving to improve, continually improve, an inventory
performance throughout the year across the business. What I would say
on the consumer digital side, we are closer to the benchmark in terms of
turns, and that is a business that has improved its turn substantial from
the two range to well over three, over the past year and a half, and that's
attributable to – largely the new business model associated with digital
camera devices and frames.
The rest of our businesses still have up side opportunity, quite honestly,
the Graphic Communication side; whether it's equipment in graphic
communications where we have opportunities to improve our cycle on
customer installation an acceptance there by improving the cash cycle
and also in the consumer inkjet side. But for consumer inkjet right now
the issue is making sure that we can effectively fulfill all the demand that's
out there. It's a good problem to have, but that's what we're focusing in
on right now before we get up to a level where we are looking at turns.
You know, turns are high right now for some specific products in
consumer inkjet just because we are building to demand. But that – I
would characterize the CDG overall is doing well and GCG still has
opportunities. And we have some pretty aggressive internal inventory
targets for the end of the year.
Antonio Perez: Let me add a couple of things. As far as consumer inkjet and all the CDG
products, we believe we have a leading supply chain.. We have a lot of
flexibility in moving volumes up and down a lot faster than, obviously, we
were able to do a few years ago, so we feel comfortable with that. We
haven't seen, obviously, given the results that we have, a huge effect of
consumer spending, a little bit in the U.S., certainly not in Europe where
our performance has been spectacular.
And the other thing to our advantage, if there is one advantage, I hate to
say it like that in having such small market share, is that it will be a lot
easier for us to grow, and in many of these categories, we have still, in
the new categories, we're still newcomers, our ability to grow, we have a
good value proposition, good value chain, good cost structure. We think
we're very well protected, as much as you can, obviously to changes in
consumer spending.
Woo Jin Ho: OK. With respect to consumable usage, what are you seeing in terms of
the usage, specifically, consumer printing activity at retail, online and at
home, as well as, prepress and digital uses within GCG?
Antonio Perez: Well, GCG has gotten growth thanks to the increasing consumables. An
example, the color pages in Nexpess went up by 21 percent quarter to
quarter. We don't disclose every single product, but we've been
disclosing, you know, color pages because it's such and important, you
know, indicator of where that business is growing. If it wasn't in GCG for
the good growth of the consumables and the usage, we wouldn't have
been able to grow this quarter because the equipment sales, as we said,
we knew that we're going to be low because of Drupa.
-10-
11. We're introducing more than 25 products at Drupa. Nobody wants to
make a decision unless it's absolutely necessary before Drupa, and we
see that every four years when Drupa comes, so for GCG, the
consumables, we're very happy. We're very happy. The usage keeps
growing very nicely. As far as inkjet nothing much has changed since the
data that we gave up to the fourth quarter, very high usage. I will be
cautious and, I will be the first to proclaim what it is when I think we have
enough of an install base to certify that this is something that is going to
continue.
Right now, we are very well aware that the customers that we attracting
are the ones that tend to be more attracted to this business model; and,
therefore, they going to print a lot; and, therefore, our numbers are
fantastic, but we cannot say how much they are going to continue like
that. We hope that will be high. We know it will be higher than the
average, but we don't know up to what level.
Woo Jin Ho: OK and a couple of more. First, do you foresee in possibility of any gross
margin improvement this year in any of your hardware or equipment
within CDG and GCG? And you talked about the pre-Drupa effect on the
GCG revenues. How are you making that – how are you taking in the
post-Drupa effect into the outlook for the year as well as further out?
Antonio Perez: The first one. We have already seen margin improvement in devices for
us both in digital cameras and in digital picture frames. Mostly because
we have improved the way we design these products and our supply
chain is paying back the work we did last year, so yes we expect an
increase of the device, you know, gross margins.
We were very conservative on the first quarter with our number for GCG
because we knew by talking to our customers, obviously we show to
many of our future customers the new products that we're going to
introduce in Drupa. They're not going to see them in Drupa for the first
time. And that, obviously cuts both ways. In one hand, you excite your
customers where the new thing's coming. On the other hand, they were
ready to make a purchase, they're not going to make it, we think it is the
fair thing to do. We have to let them know, as far as we know, we haven't
lost any orders that we are aware of. We've seen delays in orders. We
actually seen delays in very significant orders for Versamark in the big
financial institutions.
From what we know, we're still going to get these orders, it's just that we
didn't get them in the first quarter. And so when we see the effect of
Drupa and, obviously our funnel, we believe that we're going to achieve
the goals that we set for the year for GCG, which were six to seven
percent growth of the top line.
-11-
12. Woo Jin Ho: So in terms of the Versamark business, I know there was a lot of
anticipation for the stream technologies that you've previewed over the
past couple of quarters. And you mentioned, Antonio, that there has
been some delays, but given the anticipation of stream, could there be a
lingering drag on demand to the Versamark business at all?
Antonio Perez: No. It’s not just STREAM that's going to be introduced over there.
We are introducing a very important new drop on demand, commercial
printing press that has received a lot of very, very nice comments from
the customers that have seen it, and we think this is immediately for sale
when we go to Drupa, and we think that's going to have an effect. I think
as well, people – they need to see what stream is going to do, so they
make their choices of what model of Versamark they're going to buy,
thinking about the future, and I think after Drupa and during Drupa you're
going to see an acceleration of this industry. It happens every four years.
I don't have any reason to believe that it won't happen this year.
Woo Jin Ho: Great. Thank you.
Operator: Our next question comes from Carol Sabbagha from Lehman Brothers.
Carol Sabbagha: Thank you. Just first a question on cash flow. Just looking at it from a
very big picture, we were down a little over $700 million in the first
quarter, seasonally, usually a weak quarter; nevertheless, you have a lot
to make up to get to your full-year target, so if we look at it from a very
sort of big picture perspective, what are the big buckets that we should
look for improvements or to contribute to cash flow to get you to your full-
year target? And my second quick question on cash flow is you were
down a little bit more than you were last year in the first quarter, should
we see a meaningful improvement in the second quarter? Or is this more
of a second half event for you guys on the cash flow side?
Frank Sklarsky: Taking the second question first, Carol, I think that you'll see gradual
improvement throughout the year. As you know, we generate the vast
majority of our cash in the back half of the year and, really, in the fourth
quarter, and this year I don't see a substantial change in that dynamic.
I would say to your first question, where we would see some the
improvements, we're a pretty agile management team. We've got a lot of
levers to pull. One thing we're not going to do is slow down the
investment and think their going to grow our top line. What we will do is
keep a very tight rein on capital spending to make sure we're deploying
that to those areas which are going to contribute to growth.
-12-
13. Number two, we have some very aggressive initiatives under way for the
remainder of the year on all the elements of working capital, so continued
improvements in past due receivables, continued improvements in
simplifying the business, which will help us leaning out the supply chain,
improvement in our revenue forecasting, which will also help us keep
inventory levels lower. And also, very significantly, some aggressive
initiatives around accounts payable, which were commenced in the
middle of last year but which we are accelerating this year to bring
ourselves much more quickly in line with our peer group days payable
outstanding. So those are some the key areas.
And, of course, for the remainder of this year, cash payments for
rationalization charges will be much, much lower than last year. So when
you look at the year-over-year compare on a quarterly basis that will also
help us improve. And, again, in the first quarter there were about a $150
million plus of items that I'll say were special in nature that were accrued
at the end of the year that were paid out in the first quarter, so that was
part of the explanation also. But our goal is still to achieve our cash
targets for the year.
Carol Sabbagha: Another sort of broad question for your outlook for the year. I know that
the CDG EBITDA came in as you expected, although a little bit below our
expectations, but you're still for the year looking for that business, I think,
to have two to three percent EBITDA margins, but you're going to have
more inkjet hardware sales, hopefully, on this year versus last year and
potentially lower licensing given your forecasts. What are the variables
this give you confidence that you can have this margin improvement from
'07 to '08?
Antonio Perez: Carol, you made two wrong assumptions there from our point of view,
OK, with all due respect. I don't know why the IP is going to be less. We
stick to the 250 to 350, I don't know why you said that. We don't agree
with your statement. The other one, yes, we are going to put more inkjet
printer into that, but guess what, we're getting a very nice number of
cartridges coming in now, slowly, you know.
Inkjet is a big investment still for the year, but we believe it's going to be
less than last year, and it's because even though we're going to place
more units there. Remember, they're a low-cost platform so they're less
costly for us, and we're beginning to see a lot of cartridges being sold so
Carol Sabbagha: I wasn’t just saying that – I thought last year you had over 500 million and
I thought you've said average annual 250 to 350. That doesn't mean
that's what 's coming in this year, so that's sort of why I made that
comment.
Antonio Perez: I don't recall making that statement. All I can tell you is that we do expect
this year from 250 to 350 and it will come. It didn't come in the first
quarter so it will come later.
-13-
14. Carol Sabbagha: OK. And my other question is on GCG. You've had a lot of head winds
on commodity costs over the last 12 to 18 months, and I'm assuming that
underlying that, the margin trend is, obviously, much more meaningfully
than we can see. Aside from sort of a reversal on these commodity
costs, is there a lot of potential cost savings from all that you've done
integrating these businesses less to be had, or have we gotten most of
them, and they've just been sheltered. You can't see them because of
their higher commodity cost.
Antonio Perez: But two things; The answer to your first question. Yes, there's better
margins that you can see. Second, Drupa comes only once every four
years, and we put a lot of money behind Drupa, and that's the right thing
to do, but, unfortunately, all the expenses tend to come in the two
quarters before Drupa, and we talked about R&D.
There are many other expenses that are associated with Drupa and all
the cash that is used because you have to have a good show. I mean, if
you don't have a good Drupa, you can really damage your business, so
when Drupa will be gone, we don't have those expenses anymore. We'll
have a lot less I mean, so you will see that, too.
You know, Versamark, which was basically the most under performing as
far as units, is very easy to understand why this has happened. I mean
we also caused it by ourselves by talking so much about the new stuff
that we're coming with. NexPress grew. I think it will grow more after
Drupa, but it grew this quarter, and the color units, black and white is
going down, the colors they grew nicely, and the color printing pages, as I
said before, grew 21 percent, so we see a lot of potential in that in this
group.
The only fear for that group is that we have, you know, small customers
and medium size and larger customers, so what's going to happen for the
rest of the year for those small customers that are not well capitalized and
they need loans to get to get this product. So we put in place ourselves
the ability when it's appropriate to provide finance for those people. If we
see, obviously, that it's a good deal for us, so that's the only thing that I
have.
My only worries about GCG is how well we're going to do in Drupa.
We're coming in with a very good intentions, a lot of products, a lot of
stuff, a lot of very good stuff, a lot of money behind, but then what
happens with a crisis as far as them being able to get the money they
need to buy these products. Those are the two things that, you know,
that bother me about GCG.
Carol Sabbagha: Thank you very much.
Operator: Our next question comes from Shannon Cross with Cross Research.
-14-
15. Shannon Cross: Good morning. One question to start with on the commodity pricing,
obviously, silver and aluminum impacted you fairly significantly. A few
years ago, I, you know, and this goes back to Bob Brust and that, but it
used to be common sort of like a dollar of silver increase, you know,
impacted us, say, 30 million to 60 million. I know it's much less than that
now given how you've changed your product mix, but can you give us any
indications on how sort of to think about with some of these moves in
commodities, which, you know, who knows what the dollar may go down
again, you know, how to think about the impact, both on the silver side as
well as on the aluminum side?
Frank Sklarsky: Yeah. A couple points there, Shannon. Obviously, silver is a lower
impact now than it used to be. It's probably more, and I will characterize
it into the high teens to the low 20 millions per dollar of silver because of
the reduction in the Troy ounces that we both buy directly as well as the
Troy ounces that are embedded in some of our other raw material buy.
Aluminum, I don't have a number for you, but I will say that aluminum was
a larger impact in the quarter than silver. Some of that was just the
magnitude and some of it was relative amount that we've been able to
cover through different strategies.
The other point I would make, though, is that what's hitting, you know, all
competitors right now are other raw material costs other than just
aluminum and silver, and that means anything that's petrochemical-
based; whether it's resins, plastics and so on, and also the fuel
surcharges on transportation costs, so I don't have an exact number for
you. Those are the things that we are very watchful of in addition to just
the raw import commodities for, you know, for aluminum and silver. So
again, mid-20’s millions of dollars for the first quarter on aluminum and
silver and then some amount above that impact on petro-based inputs
and transportation costs.
Shannon Cross: OK. So I just – just to confirm because I don't want to make – I want to
make sure I get this right, the mid-20’s is basically …
Frank Sklarsky: That's aluminum and silver.
Shannon Cross: … per dollar? Or is that year-over-year impact?
Frank Sklarsky: No. That – year-over-year for first quarter …
Shannon Cross: OK.
Frank Sklarsky: About 24, $25 million.
Shannon Cross: And can you give us any indication on your hedging strategies? I noticed
you're doing a bit more now.
-15-
16. Frank Sklarsky: Well, we – the strategy – on aluminum as opposed to actually direct
hedging, we have the ability to vary our contracts between a fixed and a
floating rate, and we kind of try to stay agile on that as we see the market.
The thing with silver is because the run off was so dramatic is such a
short period of time, I think it would have been impossible to layer on the
kind of coverage, according to the step model that we have, just in a very
short window, but we do have some amounts of coverage for each of the
commodities as long as, you know, as we go out through the year in
declining amounts quarter by quarter.
We do buy some of our aluminum in Euro, which does help us a little bit,
but, you know, nevertheless, it's still and impact year-over-year and we
continue to pursue what is step model for hedging, which declined –
declining coverage over time in the out quarters.
Shannon Cross: OK. Great and then I just had a follow-up question, Frank, on the change
in useful life, just to make sure. There is no impact to cash taxes. Has
there been any accelerate, you know, any accelerated depreciation,
anything that we should keep in mind that might impact cash over the
next few quarters related to the depreciation change?
Frank Sklarsky: Not anything significant. We're still holding to our cash tax number of
about $150 million this year, and that includes about 60 million that'll be
paid on the gains of sale for health and HPA, so, yeah, no significant
impact on taxes from cash depreciation changes.
Shannon Cross: OK. Great and then just one final question for Antonio from a sort of
macro stand point. Given the pressure you're seeing on the commodity
side, and I'm sure the Euro's impacting you a the SG&A side as well and
that, you know, what – sort of how do you sit back and look at your cost
structure and say, OK, you know, at what point will we need another
restructuring? Just if you could give us any thoughts, you know, as to
how you're sort of viewing it. How many quarters are you going to give us
before you, you know, before take another look at your cost structure?
Any – anything you could give us on that would be helpful. Thank you.
Antonio Perez: No. I don't see anything like that, certainly not this year or even in the
years to come. When we came into this year, and when we put our plans
for the year, we kind of knew a lot of what was going to in the market, so
and I think you probably remember. In February we did say that we took
into account our best estimate of the economy and how that would impact
both retail as well as the small businesses we were worried about, and
we put that in our numbers, so our numbers already included when we
came out with the number for the year, a prudent approach to a market
that we weren't sure how it was going to be.
-16-
17. The cost structure's getting better every day. I don't see anymore than
the $60 to $80 million in rationalization for 2008. There’s no scenario in
my mind that will do that. In few years from now but I cannot tell you
when, but there will be one time in which we will have instead of two
factories for film and paper paper, we will have only one. I can assure
you by that time, the restructure will be so small that you won't even
notice because we are already getting ready for that, but I can't even tell
you when it is because it will take few years for us, so I don't see any
restructuring of any magnitude that I can think of and any of the scenarios
that you tell me the economy, the whole world economy going to crash
down, I mean, then we'll have to have another conversation, but with
what I know and what we know and with the modeling we do and with the
growth that we expect, no, I don't expect anything more than what we
have published.
Operator: Our next question comes from Ananda Baruah with Bank of America.
Ananda Baruah: First, taking the question, a couple of questions. I guess the first one is
on cameras. One of your competitors made comments last week that
they've seen camera pricing become meaningfully more aggressive and it
impacted their top line and their margin. It certainly doesn't seem to have
impacted your top line too much, but I was just wondering if you could talk
about any change in camera pricing trends, or I guess what you're seeing
as far as camera pricing goes out there in the marketplace. And how, if at
all, the outsourcing of your camera manufacturing could insulate you from
margin pressure?
Antonio Perez: Well, I don't know who told you that. But, yeah, I think that is been true
since 2003 when I came here. I wouldn't change one single word of what
you said describing the situation with additional camera market since the
moment I came into this company as being as brutal and as aggressive
and as difficult as you just described, so there's nothing – there is no
news.
Yes, it is very aggressive. That's why we made the changes we made in
the what with design, our product platform. That's why we changed our
whole supply chain to one that we're very proud of, and we think is very
agile, very low cost. And remember, we tend to play in more of the kind
of the lower price, so if one should be suffering with this, it would be us,
and we're not suffering with that.
Ananda Baruah: So I appreciate those comments, so from your vantage point, you know,
sort of aggressive pricing as a rule notwithstanding, you haven't seen
anything incremental occur over the last couple of months.
Antonio Perez: No, no.
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18. Antonio Perez: That is very aggressive. Yes, it is aggressive because it's hard to
differentiate. You know, having said that, we are one of the first
companies that came with a smart capture, which is the way these
cameras are going to be, with Sony, and I think that some other
companies are coming with that too, but we are leading in feature set that
really matter for the masses, and we keep a very, very low and lean cost
structure. That's the only way to run this business.
Ananda Baruah: OK. Thank you. And just a follow-up if I could, regarding your plate
business and just general trends that you're seeing in the offset market
sort of so far in 2008, I think there's some data that's suggests, at least in
the U.S. that the offset market is slowing to some degree. Could you talk
about what you're seeing in that market, I guess, both in the U.S. and
Europe and sort of any impact to your business there, your plate
business?
Antonio Perez: Well, we have double-digit growth in plates. If we can keep that
worldwide, which is the figure that we disclose, but we see the plate
market healthy. Again, it's very competitive, though. I can say the same
thing as far as cameras. It's a good margin business, larger, higher
margin than cameras in the key competitors involved, they're very
aggressive. So are we. We work constantly in lower costs. You know,
that we put a new plant in China to help us with lower cost for Asia
Pacific.
Actually, we've been suffering with lack of capacity, in a couple of things.
We didn't mention that in the call, but in plates we kind of getting better
now with China. We're not quite out of it, and in inkjet, I'm surprised that
none of you has called and said that you went to five or six stores, you
couldn't find our printer because they're out of stock, so we still have
some capacity issues; in part because we play safe and we are
obsessed, you know, with supply chain, and maybe too much.
We have to do better, but plates I see the business is going to be
competitive for a long time. It's about very good processes, very low cost
and good quality. And you have to have critical mass, though. This is
one business without critical mass, you can go anywhere, so we are the
largest supplier in the world of plate, and I guess that gives us some
advantage in critical mass. But I expect the market to be very
competitive. We don't have any dreams that it's not going to be like that.
Ananda Baruah: And do you view what's going to in the U.S. economy as a potential
headwind to the plate business as you move through the next couple of
quarters?
Antonio Perez: Well, the biggest installation of NexPress is in the US, and they – they're
printing a lot. Now, they don't need plates for that.
Ananda Baruah: Oh, I'm sorry. The plate business I was referring to. The offset market.
Antonio Perez: OK. OK, plates.
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19. Ananda Baruah: Yeah.
Antonio Perez: I don't have the number of the U.S. in plates, but worldwide, it's been a
great quarter of plates. If something were to happen significant in the
U.S., I believe where the issue was more in Europe. I mean, the less
growth was in Europe than in the U.S., so, no, I haven't seen anything.
Ananda Baruah: OK. Great. Thank you.
Operator: And ladies and gentlemen, that does conclude today's question and
answer session. At this time I'd like to turn the call back over to Mr. Perez
for any additional or closing remarks.
Antonio Perez: Well, thank you very much. Thank you for all for your questions and for
attending, you know, the call. I know that there are other important
companies doing this the same day, so I appreciate that you chose to be
with us. We are pleased with the first quarter. It is within the plan that we
have. This quarter fits perfectly within the plan that we presented to you
in February, so we're on track to achieve our revenue, our earnings and
our cash goals for the year. Thank you very much.
Operator: This does conclude today's conference call. We appreciate your
participation, and you may now disconnect.
END
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