Net sales for the fourth quarter of 2006 decreased 9% compared to the fourth quarter of 2005, primarily due to declines in volumes and unfavorable price/mix. Digital product sales decreased 5% and traditional product sales decreased 15%. Gross profit increased 4% due to reductions in manufacturing costs, favorable price/mix and foreign exchange, partially offset by volume declines. Earnings from continuing operations were $17 million compared to a loss of $137 million in the prior year, driven by gross profit increases and lower SG&A and R&D expenses.
Worldwide revenues for the second quarter of 2006 decreased 9% compared to the second quarter of 2005, primarily due to declines in volumes and price/mix across several strategic product groups. Digital product sales increased 6% due to the Creo acquisition, while traditional product sales decreased 22%. Gross profit margin declined 4.1 percentage points due to higher manufacturing costs and declines in volumes and price/mix. The Consumer Digital Imaging Group saw a 6% revenue decrease due to lower volumes and price/mix, with a 3.4 percentage point decline in gross margin.
The document provides a financial summary of the third quarter of 2006 compared to the third quarter of 2005. Key points include:
- Worldwide revenues decreased 10% to $3.2 billion due to declines in volumes and prices across several strategic product groups.
- Gross profit decreased 5% to $874 million but the gross profit margin increased 1.4 percentage points to 27.3% due to manufacturing cost reductions and positive price/mix impacts.
- Loss from continuing operations decreased from $915 million to $37 million, driven by improvements in gross profit margin and reductions in spending, partially offset by higher interest expenses.
- Kimberly-Clark announced its second quarter 2015 results, reporting a 6% decrease in net sales from the year-ago period due to unfavorable foreign exchange rates. Organic sales rose 4%.
- Diluted net income per share was a loss of $0.83 in Q2 2015, compared to income of $1.32 in Q2 2014. Adjusted earnings per share were $1.41 in 2015 versus $1.33 in 2014.
- For full-year 2015, the company anticipates adjusted earnings per share of $5.65 to $5.80, compared to previous guidance of $5.60 to $5.80.
Goodrich Corporation announced a 87% increase in fourth quarter 2005 net income per share compared to fourth quarter 2004. Fourth quarter 2005 sales increased 11% year-over-year to $1.398 billion. For full year 2005, net income was $264 million, or $2.13 per share, on sales of $5.397 billion. Goodrich reiterated its 2006 outlook of sales between $5.6-5.7 billion and earnings per share of $2.20-2.40, representing 12-22% growth over 2005.
Celanese Corporation reported financial results for the fourth quarter and full year of 2004. For the fourth quarter, net sales increased 15% to $1.33 billion due to higher pricing, currency effects, and volume. However, net earnings declined to a loss of $57 million due to higher interest expenses, impairment charges, and unusual items. For the full year, net sales increased 10% to $5.07 billion but net earnings declined to a loss of $175 million mainly due to restructuring charges, interest expenses, and impairment charges. Celanese expects adjusted EBITDA to increase 25-30% in the first quarter of 2005 and grow 12-17% for the full year 2005.
Motorola reported strong financial results for the second quarter of 2004, with sales increasing 41% compared to the second quarter of 2003. However, Motorola reported a net loss due to a large non-cash tax expense related to the IPO of Freescale Semiconductor. Excluding this tax expense, pre-tax earnings increased significantly. All of Motorola's business segments saw sales increases, with the Personal Communications segment experiencing the largest growth. Motorola provided guidance for the third quarter of 2004 with sales expected to increase 25-30% and earnings per share of $0.15 to $0.19.
P&G Delivers Second Quarter EPS and Organic Sales in Line with Expectations finance3
- P&G reported diluted net earnings per share of $1.58 for the second quarter, a 61% increase from the previous year, driven by a $0.63 gain from the sale of the Folgers business. Organic sales grew 2% due to price increases and positive product mix while net sales declined 3% from unfavorable foreign exchange and lower volume.
- The CEO acknowledged it was a challenging quarter but said P&G delivered earnings in line with expectations and will continue focusing on innovation, cost management and productivity to drive long-term profitable growth.
- For the fiscal year, P&G expects organic sales growth of 2-5% and earnings per share of $4.29,
TRW Automotive reported fourth quarter and full year 2006 financial results. For the fourth quarter, sales increased 4.3% to $3.3 billion but net earnings decreased 43% to $33 million. For the full year, sales grew 4% to $13.1 billion while net earnings fell 14% to $176 million. The company exceeded guidance due to lower restructuring costs and favorable operations. Looking ahead, TRW expects continued pressure from the difficult North American auto market but remains focused on technology investments and global growth.
Worldwide revenues for the second quarter of 2006 decreased 9% compared to the second quarter of 2005, primarily due to declines in volumes and price/mix across several strategic product groups. Digital product sales increased 6% due to the Creo acquisition, while traditional product sales decreased 22%. Gross profit margin declined 4.1 percentage points due to higher manufacturing costs and declines in volumes and price/mix. The Consumer Digital Imaging Group saw a 6% revenue decrease due to lower volumes and price/mix, with a 3.4 percentage point decline in gross margin.
The document provides a financial summary of the third quarter of 2006 compared to the third quarter of 2005. Key points include:
- Worldwide revenues decreased 10% to $3.2 billion due to declines in volumes and prices across several strategic product groups.
- Gross profit decreased 5% to $874 million but the gross profit margin increased 1.4 percentage points to 27.3% due to manufacturing cost reductions and positive price/mix impacts.
- Loss from continuing operations decreased from $915 million to $37 million, driven by improvements in gross profit margin and reductions in spending, partially offset by higher interest expenses.
- Kimberly-Clark announced its second quarter 2015 results, reporting a 6% decrease in net sales from the year-ago period due to unfavorable foreign exchange rates. Organic sales rose 4%.
- Diluted net income per share was a loss of $0.83 in Q2 2015, compared to income of $1.32 in Q2 2014. Adjusted earnings per share were $1.41 in 2015 versus $1.33 in 2014.
- For full-year 2015, the company anticipates adjusted earnings per share of $5.65 to $5.80, compared to previous guidance of $5.60 to $5.80.
Goodrich Corporation announced a 87% increase in fourth quarter 2005 net income per share compared to fourth quarter 2004. Fourth quarter 2005 sales increased 11% year-over-year to $1.398 billion. For full year 2005, net income was $264 million, or $2.13 per share, on sales of $5.397 billion. Goodrich reiterated its 2006 outlook of sales between $5.6-5.7 billion and earnings per share of $2.20-2.40, representing 12-22% growth over 2005.
Celanese Corporation reported financial results for the fourth quarter and full year of 2004. For the fourth quarter, net sales increased 15% to $1.33 billion due to higher pricing, currency effects, and volume. However, net earnings declined to a loss of $57 million due to higher interest expenses, impairment charges, and unusual items. For the full year, net sales increased 10% to $5.07 billion but net earnings declined to a loss of $175 million mainly due to restructuring charges, interest expenses, and impairment charges. Celanese expects adjusted EBITDA to increase 25-30% in the first quarter of 2005 and grow 12-17% for the full year 2005.
Motorola reported strong financial results for the second quarter of 2004, with sales increasing 41% compared to the second quarter of 2003. However, Motorola reported a net loss due to a large non-cash tax expense related to the IPO of Freescale Semiconductor. Excluding this tax expense, pre-tax earnings increased significantly. All of Motorola's business segments saw sales increases, with the Personal Communications segment experiencing the largest growth. Motorola provided guidance for the third quarter of 2004 with sales expected to increase 25-30% and earnings per share of $0.15 to $0.19.
P&G Delivers Second Quarter EPS and Organic Sales in Line with Expectations finance3
- P&G reported diluted net earnings per share of $1.58 for the second quarter, a 61% increase from the previous year, driven by a $0.63 gain from the sale of the Folgers business. Organic sales grew 2% due to price increases and positive product mix while net sales declined 3% from unfavorable foreign exchange and lower volume.
- The CEO acknowledged it was a challenging quarter but said P&G delivered earnings in line with expectations and will continue focusing on innovation, cost management and productivity to drive long-term profitable growth.
- For the fiscal year, P&G expects organic sales growth of 2-5% and earnings per share of $4.29,
TRW Automotive reported fourth quarter and full year 2006 financial results. For the fourth quarter, sales increased 4.3% to $3.3 billion but net earnings decreased 43% to $33 million. For the full year, sales grew 4% to $13.1 billion while net earnings fell 14% to $176 million. The company exceeded guidance due to lower restructuring costs and favorable operations. Looking ahead, TRW expects continued pressure from the difficult North American auto market but remains focused on technology investments and global growth.
HUL Q1FY15: Decent numbers; PAT grows 21.2% - HDFC SecIndiaNotes.com
Hindustan Unilever (HUL) reported revenue growth of 13.2% and operating profit growth of 21.3% for Q1FY15, ahead of estimates. Volume growth was 6% with strong growth across segments like soaps & detergents and personal products. Operating margins expanded for the 12th straight quarter due to lower costs. While results were positive, growth may slow in coming quarters due to rural slowdown and competition. The report recommends buying on dips.
1) Hering reported strong financial results in 2009 with total gross revenue increasing 39.4% and EBITDA growing 71.9% to R$154 million.
2) The company expanded its store network opening 46 Hering Stores and 15 PUC Stores in 2009.
3) Same-store sales increased 27.2% in 2009 and 32.6% in the fourth quarter driven by increased store traffic.
4) Gross margins improved with the gross margin excluding depreciation reaching 53.1% in the fourth quarter.
5) The company outlined plans to further expand the Hering Store network to 405 stores by 2012 focused on
This document summarizes Whirlpool Corporation's financial performance in 2006 and 2005. Key points include:
- Net sales increased 26.3% in 2006 due to the Maytag acquisition, while earnings were $433 million.
- Regional performance was mixed, with strong growth in North America, Europe, and Latin America offset by margin declines.
- Gross margins declined due to higher material costs, though productivity gains offset some declines.
- Cash flow was impacted by restructuring costs and pension contributions, but remained positive.
- Whirlpool expects continued global appliance market growth in 2007 but material cost increases and a decline in the North American market.
Merrill Lynch reported record earnings for 2005, with earnings per share of $5.27, up 20% from 2004. Net earnings were $5.2 billion, up 18% from 2004. All three of Merrill Lynch's business segments - Global Markets and Investment Banking, Global Private Client, and Merrill Lynch Investment Managers - generated record pre-tax earnings and higher revenues compared to 2004. Merrill Lynch also announced a 25% increase to its quarterly common stock dividend to $0.25 per share.
TRW Automotive reported fourth quarter and full year 2005 financial results, with sales of $3.1 billion for Q4 2005, a 1.6% decrease from the prior year. Net earnings for Q4 2005 were $59 million compared to a net loss of $62 million in the prior year. For the full year 2005, sales were $12.6 billion, a 5.3% increase from 2004, and net earnings were $204 million compared to $29 million in 2004. TRW provided guidance for 2006 of sales between $12.8-13.2 billion and EPS of $1.05-1.30, excluding a $57 million debt retirement charge.
This document summarizes the Q3 2005 earnings results of a major food company. Some key highlights include: 1) Major brands in the Retail Products segment saw mixed sales results, with growth for brands like Chef Boyardee but declines for brands like Butterball. 2) Unit volumes declined 3% for Retail Products but increased 4% for Foodservice Products. 3) The packaged meats operations were slightly profitable but profits were over $45 million lower than the previous year. The company expects some improvement but not year-over-year profit gains for packaged meats in Q4.
Clear Channel Communications reported financial results for the first quarter of 2006, with revenue increasing 4% to $1.5 billion compared to the first quarter of 2005. Net income increased 102% to $96.8 million, and diluted earnings per share increased 58% to $0.19. Revenue growth was driven by increases in radio broadcasting and outdoor advertising revenue. The company continued its share repurchase program, repurchasing $1.3 billion of shares since August 2005.
P&G Reports Fourth Quarter EPS of $0.92 and Operating Profit Growth of 13%, b...finance3
- P&G reported 4th quarter EPS of $0.92, a 37% increase, and operating profit growth of 13% behind balanced 5% organic sales and volume growth.
- For the fiscal year, net sales increased 9% to $83.5 billion and EPS grew 20% to $3.64, marking the 7th consecutive year of top-line growth meeting or exceeding targets.
- Segment results were mixed, with some like Beauty and Grooming seeing sales growth from new product launches and markets, while others like Health & Well-Being faced commodity cost pressures and market changes.
- eBay reported record financial results for Q2 2002, with net revenues of $266.3 million, up 47% year-over-year. Net income was a record $54.3 million, up 121% year-over-year.
- Online transaction revenues grew 66% year-over-year to a record $235.3 million, driven by 48% growth in the US and 152% growth internationally.
- For Q3 2002, eBay expects net revenues of $278-281 million and pro forma EPS of approximately $0.19. For the full year 2002, eBay expects net revenues of approximately $1.1 billion and pro forma EPS of $0.76-0.78.
P&G Delivers 8% Organic Sales Growth for the April-June Quarter; Drives Base ...finance3
P&G reported strong fiscal Q4 and full year results. Organic sales grew 8% in Q4 and 7% for the full year, ahead of targets. Base business EPS grew an estimated 17-21% in Q4 and 12-13% for the full year. Net earnings increased 36% in Q4 and 25% for the full year due to sales growth, margin improvement, and the Gillette acquisition. All business segments and regions increased organic sales and volume for both periods.
Bruker drives profitable growth through scientific discoveries and high-performance analytical, life science, and diagnostic solutions. The presentation discusses Bruker's business and financial overview, technology portfolio, key markets, and strategy for growth. Bruker aims to accelerate revenue growth, continue margin expansion, and increase returns through high-impact innovation, new products, operational excellence, and complementary acquisitions. Areas of focus include life science research, biopharma, clinical applications, and nano-analysis.
P&G Reports First Quarter EPS of $1.03 Up 12% on 9% Sales Growthfinance3
- P&G reported first quarter net sales growth of 9% to $22 billion and diluted EPS growth of 12% to $1.03 per share.
- Sales growth was led by the Beauty, Fabric Care & Home Care, and Baby Care & Family Care segments.
- The CEO expressed confidence that P&G will continue to deliver long-term growth through leading innovation and productivity despite economic challenges.
This document brings together a set of latest data points and publicly available information relevant for Retail & Consumer good. We are very excited to share this content and believe that readers will benefit from this periodic publication immensely.
Goodrich announced financial results for the first quarter of 2006 with net income per share of $1.60, including $1.05 per share from tax settlements. Sales increased 12% to $1.42 billion due to growth across all segments and market channels. Goodrich also announced the planned divestiture of its Turbomachinery Products business and increased its full year 2006 net income per share outlook to $3.38-$3.58 due to the tax settlements and divestiture.
P&G Reports $0.82 EPS, Up 11%, On 13% Operating Profit Growthfinance3
- P&G reported 11% growth in diluted EPS to $0.82 driven by 9% net sales growth to $20.5 billion and 13% growth in operating profit. Volume grew 4% globally with 5% organic growth.
- Operating margin improved 0.6% through cost savings and synergies offsetting higher commodity costs. All segments saw sales growth with Beauty up 9% and Grooming up 13% on new product launches.
- The results demonstrated the benefits of P&G's diversification and focus on costs despite challenges, with cash flow well ahead of targets allowing $2.6 billion in share repurchases.
Walmart reported financial results for Q4 and fiscal year 2014. Q4 EPS was $1.34 and underlying EPS was $1.60. Fiscal year 2014 EPS was $4.85 and underlying EPS was $5.11. Consolidated net sales for fiscal 2014 increased 1.6% to $473.1 billion. The company plans to increase capital expenditures in fiscal 2015 to accelerate the rollout of small format stores in the US, including Neighborhood Markets and Walmart Express stores. For fiscal 2015, the company expects EPS between $5.10-$5.45.
- The document is the transcript from 3M's Q1 2006 earnings conference call.
- 3M had strong sales growth of 8.3% in Q1 2006, with all six business segments growing. Operating income grew 18.8%.
- Geographic growth was strong, with Asia Pacific growing 12.0% and Europe growing 7.9% in local currency.
Clear Channel Communications reported financial results for the third quarter of 2006 with revenues increasing 7% to $1.8 billion compared to the third quarter of 2005. Income before discontinued operations rose 8% to $185.9 million. The company's OIBDAN increased 10% to $595.4 million. Radio broadcasting revenues were up 5% and outdoor advertising revenues increased 8%. The CEO commented that the company has healthy fundamentals and is capitalizing on its diverse portfolio of out-of-home media properties.
- Telefónica reported results for the first half of 2013, with revenues declining 7.8% year-over-year but growing 0.5% organically. OIBDA declined 9.7% year-over-year but was roughly stable at €9.4 billion excluding foreign exchange impacts.
- Commercial activity was strong in the second quarter, with record smartphone additions of 8.2 million. This helped recover organic revenue growth.
- Cash flow generation was also strong, with free cash flow of €1.9 billion in the second quarter alone. Net debt was reduced by €10 billion since mid-2012.
- Performance was led by Latin America, with Brazil in particular seeing double-
This document is Danaher Corporation's Form 10-Q quarterly report filed with the SEC for the quarter ended September 26, 2008. It includes Danaher's consolidated condensed financial statements and notes. Some key details include:
- Net earnings for the quarter were $371.9 million compared to $483.7 million in the prior year.
- Total current assets increased to $4.1 billion from $4 billion at the end of 2007.
- Sales for the quarter increased to $3.2 billion from $2.7 billion in the prior year.
- Cash flows from operating activities for the nine months ended was $1.3 billion.
This document is Visteon Corporation's Form 10-Q/A for the quarter ended March 31, 2004, which includes restated financial statements. The restatements are primarily due to errors in accounting for retiree health benefits, tooling costs, volume rebates, pension expenses, and taxes. The corrections resulted in a decrease to net income of $5 million for Q1 2004 and an increase to net loss of $4 million for Q1 2003. The form amends and restates items in the original filing and provides updated certifications while describing conditions as of the original filing date.
HUL Q1FY15: Decent numbers; PAT grows 21.2% - HDFC SecIndiaNotes.com
Hindustan Unilever (HUL) reported revenue growth of 13.2% and operating profit growth of 21.3% for Q1FY15, ahead of estimates. Volume growth was 6% with strong growth across segments like soaps & detergents and personal products. Operating margins expanded for the 12th straight quarter due to lower costs. While results were positive, growth may slow in coming quarters due to rural slowdown and competition. The report recommends buying on dips.
1) Hering reported strong financial results in 2009 with total gross revenue increasing 39.4% and EBITDA growing 71.9% to R$154 million.
2) The company expanded its store network opening 46 Hering Stores and 15 PUC Stores in 2009.
3) Same-store sales increased 27.2% in 2009 and 32.6% in the fourth quarter driven by increased store traffic.
4) Gross margins improved with the gross margin excluding depreciation reaching 53.1% in the fourth quarter.
5) The company outlined plans to further expand the Hering Store network to 405 stores by 2012 focused on
This document summarizes Whirlpool Corporation's financial performance in 2006 and 2005. Key points include:
- Net sales increased 26.3% in 2006 due to the Maytag acquisition, while earnings were $433 million.
- Regional performance was mixed, with strong growth in North America, Europe, and Latin America offset by margin declines.
- Gross margins declined due to higher material costs, though productivity gains offset some declines.
- Cash flow was impacted by restructuring costs and pension contributions, but remained positive.
- Whirlpool expects continued global appliance market growth in 2007 but material cost increases and a decline in the North American market.
Merrill Lynch reported record earnings for 2005, with earnings per share of $5.27, up 20% from 2004. Net earnings were $5.2 billion, up 18% from 2004. All three of Merrill Lynch's business segments - Global Markets and Investment Banking, Global Private Client, and Merrill Lynch Investment Managers - generated record pre-tax earnings and higher revenues compared to 2004. Merrill Lynch also announced a 25% increase to its quarterly common stock dividend to $0.25 per share.
TRW Automotive reported fourth quarter and full year 2005 financial results, with sales of $3.1 billion for Q4 2005, a 1.6% decrease from the prior year. Net earnings for Q4 2005 were $59 million compared to a net loss of $62 million in the prior year. For the full year 2005, sales were $12.6 billion, a 5.3% increase from 2004, and net earnings were $204 million compared to $29 million in 2004. TRW provided guidance for 2006 of sales between $12.8-13.2 billion and EPS of $1.05-1.30, excluding a $57 million debt retirement charge.
This document summarizes the Q3 2005 earnings results of a major food company. Some key highlights include: 1) Major brands in the Retail Products segment saw mixed sales results, with growth for brands like Chef Boyardee but declines for brands like Butterball. 2) Unit volumes declined 3% for Retail Products but increased 4% for Foodservice Products. 3) The packaged meats operations were slightly profitable but profits were over $45 million lower than the previous year. The company expects some improvement but not year-over-year profit gains for packaged meats in Q4.
Clear Channel Communications reported financial results for the first quarter of 2006, with revenue increasing 4% to $1.5 billion compared to the first quarter of 2005. Net income increased 102% to $96.8 million, and diluted earnings per share increased 58% to $0.19. Revenue growth was driven by increases in radio broadcasting and outdoor advertising revenue. The company continued its share repurchase program, repurchasing $1.3 billion of shares since August 2005.
P&G Reports Fourth Quarter EPS of $0.92 and Operating Profit Growth of 13%, b...finance3
- P&G reported 4th quarter EPS of $0.92, a 37% increase, and operating profit growth of 13% behind balanced 5% organic sales and volume growth.
- For the fiscal year, net sales increased 9% to $83.5 billion and EPS grew 20% to $3.64, marking the 7th consecutive year of top-line growth meeting or exceeding targets.
- Segment results were mixed, with some like Beauty and Grooming seeing sales growth from new product launches and markets, while others like Health & Well-Being faced commodity cost pressures and market changes.
- eBay reported record financial results for Q2 2002, with net revenues of $266.3 million, up 47% year-over-year. Net income was a record $54.3 million, up 121% year-over-year.
- Online transaction revenues grew 66% year-over-year to a record $235.3 million, driven by 48% growth in the US and 152% growth internationally.
- For Q3 2002, eBay expects net revenues of $278-281 million and pro forma EPS of approximately $0.19. For the full year 2002, eBay expects net revenues of approximately $1.1 billion and pro forma EPS of $0.76-0.78.
P&G Delivers 8% Organic Sales Growth for the April-June Quarter; Drives Base ...finance3
P&G reported strong fiscal Q4 and full year results. Organic sales grew 8% in Q4 and 7% for the full year, ahead of targets. Base business EPS grew an estimated 17-21% in Q4 and 12-13% for the full year. Net earnings increased 36% in Q4 and 25% for the full year due to sales growth, margin improvement, and the Gillette acquisition. All business segments and regions increased organic sales and volume for both periods.
Bruker drives profitable growth through scientific discoveries and high-performance analytical, life science, and diagnostic solutions. The presentation discusses Bruker's business and financial overview, technology portfolio, key markets, and strategy for growth. Bruker aims to accelerate revenue growth, continue margin expansion, and increase returns through high-impact innovation, new products, operational excellence, and complementary acquisitions. Areas of focus include life science research, biopharma, clinical applications, and nano-analysis.
P&G Reports First Quarter EPS of $1.03 Up 12% on 9% Sales Growthfinance3
- P&G reported first quarter net sales growth of 9% to $22 billion and diluted EPS growth of 12% to $1.03 per share.
- Sales growth was led by the Beauty, Fabric Care & Home Care, and Baby Care & Family Care segments.
- The CEO expressed confidence that P&G will continue to deliver long-term growth through leading innovation and productivity despite economic challenges.
This document brings together a set of latest data points and publicly available information relevant for Retail & Consumer good. We are very excited to share this content and believe that readers will benefit from this periodic publication immensely.
Goodrich announced financial results for the first quarter of 2006 with net income per share of $1.60, including $1.05 per share from tax settlements. Sales increased 12% to $1.42 billion due to growth across all segments and market channels. Goodrich also announced the planned divestiture of its Turbomachinery Products business and increased its full year 2006 net income per share outlook to $3.38-$3.58 due to the tax settlements and divestiture.
P&G Reports $0.82 EPS, Up 11%, On 13% Operating Profit Growthfinance3
- P&G reported 11% growth in diluted EPS to $0.82 driven by 9% net sales growth to $20.5 billion and 13% growth in operating profit. Volume grew 4% globally with 5% organic growth.
- Operating margin improved 0.6% through cost savings and synergies offsetting higher commodity costs. All segments saw sales growth with Beauty up 9% and Grooming up 13% on new product launches.
- The results demonstrated the benefits of P&G's diversification and focus on costs despite challenges, with cash flow well ahead of targets allowing $2.6 billion in share repurchases.
Walmart reported financial results for Q4 and fiscal year 2014. Q4 EPS was $1.34 and underlying EPS was $1.60. Fiscal year 2014 EPS was $4.85 and underlying EPS was $5.11. Consolidated net sales for fiscal 2014 increased 1.6% to $473.1 billion. The company plans to increase capital expenditures in fiscal 2015 to accelerate the rollout of small format stores in the US, including Neighborhood Markets and Walmart Express stores. For fiscal 2015, the company expects EPS between $5.10-$5.45.
- The document is the transcript from 3M's Q1 2006 earnings conference call.
- 3M had strong sales growth of 8.3% in Q1 2006, with all six business segments growing. Operating income grew 18.8%.
- Geographic growth was strong, with Asia Pacific growing 12.0% and Europe growing 7.9% in local currency.
Clear Channel Communications reported financial results for the third quarter of 2006 with revenues increasing 7% to $1.8 billion compared to the third quarter of 2005. Income before discontinued operations rose 8% to $185.9 million. The company's OIBDAN increased 10% to $595.4 million. Radio broadcasting revenues were up 5% and outdoor advertising revenues increased 8%. The CEO commented that the company has healthy fundamentals and is capitalizing on its diverse portfolio of out-of-home media properties.
- Telefónica reported results for the first half of 2013, with revenues declining 7.8% year-over-year but growing 0.5% organically. OIBDA declined 9.7% year-over-year but was roughly stable at €9.4 billion excluding foreign exchange impacts.
- Commercial activity was strong in the second quarter, with record smartphone additions of 8.2 million. This helped recover organic revenue growth.
- Cash flow generation was also strong, with free cash flow of €1.9 billion in the second quarter alone. Net debt was reduced by €10 billion since mid-2012.
- Performance was led by Latin America, with Brazil in particular seeing double-
This document is Danaher Corporation's Form 10-Q quarterly report filed with the SEC for the quarter ended September 26, 2008. It includes Danaher's consolidated condensed financial statements and notes. Some key details include:
- Net earnings for the quarter were $371.9 million compared to $483.7 million in the prior year.
- Total current assets increased to $4.1 billion from $4 billion at the end of 2007.
- Sales for the quarter increased to $3.2 billion from $2.7 billion in the prior year.
- Cash flows from operating activities for the nine months ended was $1.3 billion.
This document is Visteon Corporation's Form 10-Q/A for the quarter ended March 31, 2004, which includes restated financial statements. The restatements are primarily due to errors in accounting for retiree health benefits, tooling costs, volume rebates, pension expenses, and taxes. The corrections resulted in a decrease to net income of $5 million for Q1 2004 and an increase to net loss of $4 million for Q1 2003. The form amends and restates items in the original filing and provides updated certifications while describing conditions as of the original filing date.
The document discusses Baxter International's 2000 Annual Report. It highlights that the number of people suffering from life-threatening conditions is growing rapidly worldwide due to an aging population and expanding access to healthcare in developing countries. Baxter aims to meet this growing global demand for treatment by leveraging its expertise in areas like plasma fractionation, recombinant processing technologies, and global manufacturing capabilities. The company is pursuing growth opportunities in existing areas like hemophilia treatment as well as new areas like vaccines and anesthesia that build on its core strengths. Baxter expects strong financial performance in 2001 with low double-digit sales growth and mid-teens earnings growth.
Baxter International's 1996 annual report outlines its vision to be recognized as a leader in innovative healthcare technologies that improve lives. It has leading market positions in four businesses: biotechnology, cardiovascular medicine, renal therapy, and intravenous systems/medical products. All of Baxter's businesses hold leading positions in high-growth global markets and are pursuing the vision through talented and dedicated people.
Sempra Energy reported revenues of over $11 billion in 2007. Net income was $1.1 billion, down from $1.4 billion in 2006. Key assets included $11.3 billion in current assets and $30.1 billion in total assets as of the end of 2007. Sempra operates utilities in California serving over 6.5 million customers.
This document is from a presentation by Michael D. Fraizer, Chairman and CEO of Genworth Financial, at the UBS Global Financial Services Conference on May 14, 2008. The presentation discusses Genworth's strategy of providing financial security products across different life stages. It acknowledges challenges in the US mortgage insurance market in 2008 due to the difficult environment, but expresses confidence in Genworth's positioning for improved future performance. The presentation outlines priorities for 2008, including navigating challenges in US mortgage insurance, expanding wealth management and retirement offerings, growing internationally, and transitioning life and long term care business lines.
This document is an SEC Form 10-K annual report filed by Entergy Corporation and several of its subsidiaries. It provides information on the companies' businesses and operations, including financial information and a management discussion and analysis. The filing includes information on the companies' securities, stock prices, directors and executives. It incorporates portions of Entergy Corporation's proxy statement for its annual shareholder meeting to be held in May 2007.
- Danaher Corporation filed a quarterly report on Form 10-Q with the SEC for the quarter ended June 27, 2008.
- The filing includes Danaher's consolidated condensed financial statements and notes, and management's discussion and analysis of financial condition and results of operations.
- Highlights include total sales of $3.3 billion for the quarter and $6.3 billion for the six months ended June 27, 2008, with net earnings of $363 million and $640 million respectively.
This document is Visteon Corporation's Form 10-Q quarterly report filed with the SEC for the quarter ending March 31, 2004. It includes Visteon's consolidated financial statements including statements of income, balance sheets, and cash flows. It also includes notes to the financial statements providing additional details. The report is broken into sections including financial information, other information, signatures, and exhibits.
Entergy Corporation's 2007 annual report summarizes the company's financial results and strategic initiatives for the year. The report discusses Entergy's plans to spin off its non-utility nuclear business and form a nuclear services joint venture in order to unlock greater value for shareholders. It also highlights Entergy's focus on operational excellence, portfolio transformation strategies in its utility business, and regulatory recovery from hurricanes Katrina and Rita in 2005.
This document is Visteon Corporation's quarterly report filed with the SEC for the quarter ended June 30, 2006. It includes Visteon's consolidated financial statements, such as statements of operations and balance sheets, as well as notes to the financial statements. An independent accounting firm reviewed the financial statements and found them to be in accordance with accounting principles generally accepted in the US. The report provides Visteon's financial results for the second quarter and first half of 2006, including net sales of $3 billion and $6 billion respectively, and discusses legal proceedings, risks factors, and exhibits related to the filing.
The document is Danaher Corporation's Form 10-Q quarterly report filed with the SEC for the quarter ended March 28, 2008. It includes Danaher's consolidated condensed financial statements and management's discussion and analysis. The financial statements show that for Q1 2008, Danaher's sales increased 20% to $3.028 billion compared to $2.521 billion in Q1 2007. Net earnings increased 9% to $276.5 million compared to $254.8 million. Earnings per share from continuing operations increased 7% to $0.87 basic and $0.83 diluted.
The document is Sempra Energy's 1999 annual report. It summarizes the company's strong financial performance in 1999, exceeding earnings growth targets. However, total shareholder return did not increase. As a result, Sempra Energy is undertaking a strategic realignment to become a leading global energy services company focused on meeting changing customer needs. Key steps include investments in growing domestic and international businesses and a reduced dividend to increase financial flexibility for growth.
This document is a proxy statement and notice of annual meeting from Baxter International Inc. to its stockholders. It informs stockholders that the 2003 Annual Meeting of Stockholders will be held on May 6, 2003 at the Drury Lane Theatre in Oakbrook Terrace, Illinois. The purpose of the meeting is to elect three directors, ratify the appointment of the independent accountants, approve the 2003 Incentive Compensation Program, and consider a stockholder proposal regarding cumulative voting. Stockholders are encouraged to vote by proxy in advance of the meeting.
- 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.
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.
1) Net sales for the company decreased 8% to $2.119 billion in Q1 2007 compared to $2.292 billion in Q1 2006 due to declines in volumes and unfavorable price/mix, partially offset by foreign exchange gains.
2) Digital product sales decreased 3% to $1.210 billion while traditional product sales decreased 13% to $896 million.
3) Gross profit decreased 9% to $429 million in Q1 2007 due to unfavorable price/mix and volume declines, partially offset by cost reductions and foreign exchange gains.
- 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.
northrop grumman Q406 and Year-End 2006 Earnings Announcementfinance8
- Northrop Grumman reported a 37% increase in fourth quarter 2006 income from continuing operations to $457 million compared to $334 million in fourth quarter 2005. Full year 2006 income from continuing operations rose 13% to $1.6 billion.
- Fourth quarter 2006 sales increased 5% to $8 billion while full year 2006 sales were comparable to 2005 at $30.1 billion.
- Contract acquisitions in fourth quarter 2006 increased 90% to $12.2 billion, bringing total backlog to a record $61 billion at the end of 2006.
- Grace reported financial results for Q1 2009 with sales of $682.1M, down 10.2% from Q1 2008. Net loss was $38.9M compared to a net income of $17.7M in Q1 2008.
- Excluding restructuring and other one-time costs, the loss would have been $8.7M for Q1 2009 compared to a net income of $35.2M in Q1 2008.
- Operating free cash flow was positive $76.2M for Q1 2009 compared to negative $14.5M in Q1 2008, driven mostly by reduced working capital and capital expenditures.
Goodrich Corporation announced a 87% increase in fourth quarter 2005 net income per share compared to fourth quarter 2004. Fourth quarter 2005 sales increased 11% year-over-year to $1.398 billion. For full year 2005, net income was $264 million, or $2.13 per share, on sales of $5.397 billion. Goodrich reiterated its 2006 outlook of sales between $5.6-5.7 billion and earnings per share of $2.20-2.40, representing 12-22% growth over 2005.
Kodak reported positive fourth quarter earnings of $17 million, despite a 9% drop in annual sales to $3.821 billion. Digital earnings grew to $271 million for the quarter, driven by improved margins in consumer digital and graphic communications. For the full year, digital earnings increased by $271 million, exceeding the decline in traditional earnings for the first time. Cash levels totaled $1.469 billion at year-end, and debt was reduced by over $800 million in 2006. Kodak expects to conclude restructuring efforts in 2007 to transition fully to a digital business model.
This document summarizes Kodak's preliminary Q4 2008 financial results and actions being taken in response to the global recession. Key points:
- Q4 sales declined 24% to $2.433B due to declines in digital (-23%) and traditional (-27%) businesses.
- Q4 loss from continuing operations was $133M; full year earnings were $54M (results are preliminary pending impairment assessments).
- Kodak is aligning its cost structure to current economic conditions through executive pay cuts, expense reductions, and job cuts.
Kodak reported third quarter 2006 sales of $3.2 billion, down 10% from the previous year. Digital earnings grew by $98 million to $105 million due to improved margins in graphic communications and consumer businesses. Cash increased to $1.1 billion while debt was reduced by $192 million. Kodak expects to achieve 2006 goals for cash generation, digital earnings, and reduced debt despite digital revenue growth slightly below 10% due to a focus on profitability over sales.
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.
Clear Channel Communications reported financial results for the fourth quarter and full year of 2005. For the fourth quarter, revenue declined 1% to $1.76 billion compared to the same period in 2004. For the full year, revenue remained flat at $6.61 billion compared to 2004. Notable events in 2005 included the successful IPO of Clear Channel Outdoor and spin-off of Live Nation. Clear Channel also returned over $1.4 billion to shareholders through share repurchases and dividends. Looking ahead, management is optimistic about growth opportunities across radio, outdoor, and television and intends to return an additional $1.6 billion to shareholders.
The document summarizes the financial results of Arezzo&Co for the third quarter of 2016. Some key highlights include:
- Net income was R$35.4 million, with a margin of 10.2%
- Gross profit increased 14.4% to R$152.2 million and gross margin grew 170 basis points
- EBITDA grew 12.5% to R$55.9 million with a margin of 16.1%
- Same-store sales increased 6.4% across owned stores, franchises, and web commerce channels
- Goodrich announced 10% sales growth in Q4 2006 and 39% growth in net income per share over Q4 2005. Full year 2006 sales rose to $5.9 billion and net income per share grew to $3.81.
- Full year 2007 outlook increased with sales expected to be $6.2-6.4 billion and net income per share of $2.95-3.15. Net cash from operations is expected to be 60-75% of net income.
- Strong performance was driven by sales growth across all market segments and business units. The outlook increases were due to actual 2006 performance and strength in commercial airplane and defense markets.
Goodrich announced strong financial results for Q4 2006 and full year 2006. Sales increased 10% in Q4 and net income per share grew 39%. For full year 2006, sales rose to $5.9 billion and net income per share increased to $3.81. Goodrich increased its 2007 outlook with sales expected to be $6.2-6.4 billion and net income per share of $2.95-3.15. Goodrich also expects net cash from operations to be 60-75% of net income for 2007.
- TRW Automotive reported third quarter 2006 financial results with sales of $3.0 billion, up 3.4% from the prior year, but net earnings of only $5 million compared to $10 million in the previous year. The higher tax rate in the current quarter contributed significantly to the decrease in earnings.
- For the first nine months of 2006, TRW reported sales of $9.9 billion, up 3.8% from the same period in 2005. However, net earnings were $143 million compared to $145 million in 2005, impacted by non-recurring expenses related to debt retirement.
- TRW revised its full year 2006 guidance downward due to expected lower customer vehicle production and other
- eBay reported record Q3 net revenues of $1.106 billion, up 37% year-over-year, and GAAP diluted EPS of $0.18 and pro forma diluted EPS of $0.20, meeting or exceeding guidance.
- Key metrics like active users, new listings, GMV and TPV all increased over 30% year-over-year, demonstrating strong growth across the business.
- The company raised full-year 2005 guidance for net revenues and EPS and provided initial guidance for 2006, projecting continued revenue growth.
- CIT reported record quarterly and annual results for Q4 2006 and full year 2006, with EPS growth of 16% and 15% respectively excluding noteworthy items.
- Key drivers were strong loan and lease origination volume of $11.6 billion in Q4 2006, up 20% from prior year, leading to higher other revenue from gains on receivable sales and syndications.
- Credit quality remained solid across segments despite some increases in consumer metrics, and full year net charge-offs declined.
- Expenses increased due to investments in sales force and origination platforms, but efficiency ratio improved slightly.
- As a result, CIT increased 2007 EPS guidance to $5.40
Merrill Lynch reported record quarterly net revenues of $8.2 billion for Q2 2006, up 29% from Q2 2005. Net earnings were $1.6 billion for Q2 2006, up 44% from Q2 2005. All three business segments - Global Markets and Investment Banking, Global Private Client, and Merrill Lynch Investment Managers - delivered substantial year-over-year revenue and earnings growth. Merrill Lynch also achieved several business and financial records in Q2 2006. Looking forward, Merrill Lynch will continue investing in talent and technology to build capabilities and achieve future growth.
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%.
-
Clear Channel Communications reported financial results for Q4 2006 and full year 2006. Revenue increased 11% to $1.94 billion in Q4 2006 and 7% to $7.07 billion for the full year. Income before discontinued operations grew 15% to $210.1 million in Q4 2006 and 688.8 million for the full year. OIBDAN increased 17% to $655.3 million in Q4 2006 and 11% to $2.28 billion for 2006. Radio revenues increased 6% to $3.7 billion for 2006 due to higher advertising rates. Outdoor revenues grew 9% to $2.9 billion for 2006 from increases in the Americas and International segments.
- MeadWestvaco reported net income of $28 million for 2005, which included after-tax losses from discontinued operations of $91 million related to the sale of its printing and writing papers business.
- Using proceeds from the sale, MeadWestvaco repurchased 12% of its outstanding shares and reduced its total debt by $1 billion to improve its financial position.
- All of MeadWestvaco's businesses experienced significantly higher costs for raw materials, energy and freight in 2005 compared to 2004, offsetting gains from higher selling prices. MeadWestvaco's packaging and specialty chemicals businesses were also impacted by a Gulf Coast hurricane in 2005.
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 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 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 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.
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.
This document from Danaher Corporation provides supplemental financial information including free cash flows, debt to total capital ratios, and net debt to total capital ratios for quarters ending in March and June of 2002 and 2003. Free cash flow increased from the prior year periods, while debt to total capital and net debt to total capital ratios decreased from the end of 2002 to the end of June 2003 due to an increase in cash and equity and a decrease in total debt. Management uses these metrics to evaluate the company's ability to generate cash, leverage over time, and access additional borrowing.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
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1. FINANCIAL DISCUSSION DOCUMENT
FOURTH QUARTER 2006 COMPARED WITH FOURTH QUARTER 2005
CONSOLIDATED
Worldwide Revenues
Net worldwide sales were $3,821 million for the fourth quarter of 2006 as compared with $4,197 million
for the fourth quarter of 2005, representing a decrease of $376 million or 9%. The decrease in net sales
was primarily due to declines in volumes and unfavorable price/mix, which decreased fourth quarter sales
by approximately 9.3 and 1.8 percentage points, respectively. The decrease in volumes was primarily
driven by declines in the consumer film capture Strategic Product Group (SPG), photofinishing services
SPG, and consumer output SPG within the FPG segment; the consumer digital capture SPG within the
CDG segment; the traditional prepress consumables SPG within the GCG segment; and the radiography
film and digital output SPGs within the KHG segment. The unfavorable price/mix was primarily driven
by the consumer film capture SPG and the consumer output SPG within the FPG segment; the radiology
film and digital output SPG within the KHG segment; the kiosk SPG and consumer digital capture SPG
within the CDG segment; and the digital prepress consumables SPG and workflow and prepress SPG
within the GCG segment. These declines were partially offset by the favorable impact of foreign
exchange of approximately 2.2 percentage points.
Net sales in the U.S. were $1,695 million for the fourth quarter of 2006 as compared with $1,976 million
for the prior year quarter, representing a decrease of $281 million, or 14%. Net sales outside the U.S.
were $2,126 million for the current quarter as compared with $2,221 million for the fourth quarter of
2005, representing a decrease of $95 million, or 4%, which includes the positive impact of foreign
currency fluctuations of $91 million, or 4%.
Digital Strategic Product Groups' Revenues
The Company's digital product sales, including new technologies product sales, were $2,464 million for
the fourth quarter of 2006 as compared with $2,605 million for the prior year quarter, representing a
decrease of $141 million, or 5%, primarily driven by the consumer digital capture SPG within the CDG
segment and the digital output SPG within the Health Group segment, partially offset by increases in the
kiosk SPG within the CDG segment; and the digital prepress consumables SPG and NexPress color SPG
within the GCG segment. Product sales from new technologies, which are included in digital product
sales, were $15 million for the fourth quarter of 2006 and $18 million for the fourth quarter of 2005.
Traditional Strategic Product Groups' Revenues
Net sales of the Company's traditional products were $1,357 million for the fourth quarter of 2006 as
compared with $1,592 million for the prior year quarter, representing a decrease of $235 million, or 15%,
primarily driven by declines in the consumer film capture SPG, the photofinishing services SPG and the
consumer and professional output SPGs in the FPG segment.
-1-
2. Foreign Revenues
The Company’s operations outside the U.S. are reported in three regions: (1) the Europe, Africa and
Middle East region (EAMER), (2) the Asia Pacific region and (3) the Canada and Latin America region.
Net sales in the EAMER region were $1,107 million for the fourth quarter of 2006 as compared with
$1,106 million for the prior year quarter, representing an increase of $1 million, or less than 1%. This
increase in net sales for the period included the favorable impact of foreign currency fluctuations of 7%.
Net sales in the Asia Pacific region were $618 million for the current quarter as compared with $701
million for the prior year quarter, representing a decrease of $83 million, or 12%. This decrease in net
sales for the period included the favorable impact of foreign currency fluctuations of 2%. Net sales in the
Canada and Latin America region were $401 million in the current quarter as compared with $414 million
for the fourth quarter of 2005, representing a decrease of $13 million, or 3%. The decrease in net sales for
the period included the favorable impact of foreign currency fluctuations of 1%.
Gross Profit
Gross profit was $1,007 million for the fourth quarter of 2006 as compared with $967 million for the
fourth quarter of 2005, representing an increase of $40 million, or 4%. The gross profit margin was
26.4% in the current quarter as compared with 23.0% in the prior year quarter. The 3.4 percentage point
increase was primarily attributable to: (1) reductions in manufacturing costs, which increased gross profit
margins by approximately 1.6 percentage points, (2) price/mix, which positively impacted gross profit
margins by approximately 1.4 percentage points, and (3) foreign exchange, which positively impacted
gross profit margins by approximately 1.0 percentage points. These increases were partially offset by
volume declines, which negatively impacted gross profit margins by approximately 0.7 percentage points.
The positive price/mix impact referred to above was primarily driven by an extension and amendment of
an existing license arrangement and a new licensing arrangement within the consumer digital capture
SPG. The non-recurring portions of these licensing arrangements contributed approximately 3.2% of
revenue to consolidated gross profit dollars in the current quarter, as compared with 1.4% of revenue to
consolidated gross profit dollars for similar arrangements in the year ago quarter. The positive impact of
these arrangements was partially offset by negative price/mix within the photofinishing services SPG and
consumer output SPG within the FPG segment; the digital capture solutions SPG within the KHG
segment; and the kiosk SPG and consumer digital capture SPG within the CDG segment. The volume
declines were primarily driven by the consumer film capture SPG and consumer output SPG within the
FPG segment; and the traditional prepress consumables SPG within the GCG segment.
Selling, General and Administrative Expenses
Selling, general and administrative expenses (SG&A) were $595 million for the fourth quarter of 2006 as
compared with $767 million for the prior year quarter, representing a decrease of $172 million, or 22%.
SG&A as a percentage of sales decreased from 18% for the fourth quarter of 2005 to 16% for the current
year quarter. The decrease in SG&A is primarily attributable to ongoing Company-wide cost reduction
initiatives. The year-over-year decrease in SG&A was also impacted by $21 million of legal settlement
costs in the fourth quarter of 2005 and a $6 million reduction to legal reserves in the fourth quarter of
2006.
-2-
3. Research and Development Costs
Research and development costs (R&D) were $170 million for the fourth quarter of 2006 as compared
with $212 million for the fourth quarter of 2005, representing a decrease of $42 million, or 20%. R&D as
a percentage of sales was 4% for the fourth quarter of 2006 as compared with the prior year quarter of 5%.
This decrease was primarily driven by spending reductions in the current quarter related to traditional
products and services, and was also impacted by integration activities related to GCG subsidiaries.
Restructuring Costs and Other
Restructuring costs and other were $20 million for the fourth quarter of 2006 as compared with $159
million for the fourth quarter of 2005, representing a decrease of $139 million or 87%. These costs, as
well as the restructuring costs reported in cost of goods sold, are discussed in further detail under
quot;RESTRUCTURING COSTS AND OTHERquot; below.
Earnings (Loss) From Continuing Operations Before Interest, Other Income (Charges), Net and
Income Taxes
Earnings from continuing operations before interest, other income (charges), net and income taxes for the
fourth quarter of 2006 were $222 million as compared with a loss of $171 million for the fourth quarter of
2005, representing an increase in earnings of $393 million. This change is attributable to the reasons
described above.
Interest Expense
Interest expense for the fourth quarter of 2006 was $60 million as compared with $67 million for the prior
year quarter, representing a decrease of $7 million, or 10%. Lower interest expense is primarily driven by
lower average debt balances resulting from approximately $540 million of payments made in the fourth
quarter of 2006 on the Company's October 2005 $2.7 billion Senior Secured Credit Facilities.
Other Income (Charges), Net
The other income (charges), net component includes investment income, income and losses from equity
investments, gains and losses on the sales of assets and investments, and foreign exchange gains and
losses. Other income for the current quarter was $36 million as compared with other income of $55
million for the fourth quarter of 2005. The decrease of $19 million is primarily attributable to lower gains
on property and asset sales related to focused cost reduction actions, partially offset by a year-over-year
increase in interest income.
Earnings (Loss) From Continuing Operations Before Income Taxes
Earnings from continuing operations before income taxes for the fourth quarter of 2006 was $198 million
as compared with a loss of $183 million for the fourth quarter of 2005, representing an increase in earnings
of $381 million. This change is attributable to the reasons described above.
-3-
4. Income Tax Provision
For the three months ended December 31, 2006, the Company recorded a provision of $181 million on pre-
tax earnings of $198 million, representing an effective rate of 91.4%. The difference of $112 million
between the recorded provision of $181 million and the provision of $69 million that would result from
applying the U.S. statutory rate of 35.0% is outlined below.
For the three months ended December 31, 2005, the Company recorded a benefit of $46 million on a pre-
tax loss of $183 million, representing an effective rate of 25.1%. The difference of $18 million between the
recorded benefit of $46 million and the benefit of $64 million that would result from applying the U.S.
statutory rate of 35.0% is outlined below.
-4-
5. 3 Months Ended 3 Months Ended
(dollars in millions) December 31, December 31,
2006 2005
• The ongoing impact of not providing any tax benefit on the
losses incurred in the U.S. and in certain foreign
jurisdictions, partially offset by the impact of the pre-tax
earnings outside the U.S. being generated in jurisdictions
with a net effective tax rate that is lower than the U.S.
$ 34 $ 47
statutory rate.
• The Company recorded discrete pre-tax charges for
restructuring, asset sale gains/losses, and a legal settlement
totaling $73 million in the three months ended December
31, 2006, relating to which the Company recorded a tax
provision of $25 million. This provision differs from the
benefit that would have resulted using the U.S. statutory
rate of $26 million primarily due to the fact that the
restructuring charges recorded in the U.S. and in certain
jurisdictions outside the U.S. have not been benefited as a
result of the Company's assessment of the realizability of
51 --
the net deferred tax assets in those jurisdictions.
• The Company recorded discrete pre-tax charges for
restructuring, asset impairments and a legal settlement
charge totaling $320 million in the three months ended
December 31, 2005, relating to which the Company
recorded a tax benefit of $27 million. This benefit differs
from the benefit that would have resulted using the U.S.
statutory rate of $112 million due to the fact that the
restructuring charges recorded in the U.S. have not been
benefited, combined with the fact that the charges recorded
outside the U.S. have been incurred in jurisdictions that
-- 85
have a net tax rate that is lower than the U.S. statutory rate.
• The Company recorded discrete tax charges in the three
months ended December 31, 2006 relating primarily to the
establishment of valuation allowances in certain foreign
jurisdictions, purchase accounting and impacts from the
ongoing tax audits and return filings with respect to open
27 --
tax years totaling $27 million.
• The Company recorded discrete tax benefits in the three
months ended December 31, 2005 relating primarily to the
release of valuation allowance against net deferred tax
assets and audit settlements in the U.S., offset by the
planned remittance of earnings from subsidiary companies
outside the U.S. and other tax adjustments.
-- (114)
Total tax provision difference resulting from the Company’s
effective tax rate vs. the U.S. statutory rate $ 112 $ 18
-5-
6. The Company has performed the required assessment of positive and negative evidence regarding the
realization of the net deferred tax assets in accordance with SFAS No. 109, “Accounting for Income Taxes”
(SFAS 109). This assessment included the evaluation of scheduled reversals of deferred tax assets and
liabilities, estimates of projected future taxable income, carryback potential and tax planning strategies.
Based upon management's December 31, 2006 assessment of realizability, management concluded that it is
no longer more likely than not that certain net deferred tax assets would be realized and, as such, recorded a
valuation allowance of approximately $89 million during the fourth quarter 2006. The net deferred tax
assets relate to entities outside of the U.S. Prior to the Company's fourth quarter 2006 assessment of
realizability, it was believed, based on available evidence, that the Company would more likely than not
realize the net deferred tax assets.
In addition, the Company continues to record a valuation allowance on all U.S. tax benefits until an
appropriate level of profitability in the U.S. is sustained or until the Company is able to generate enough
taxable income through other tax planning strategies and transactions.
On October 3, 2006, the Company filed a claim for a federal tax refund of approximately $650 million
related to a 1994 loss recognized on the sale of a subsidiary stock that was disallowed at that time under
Internal Revenue Service (IRS) regulations. Since that time, the IRS has issued new regulations that serve
as the basis for this refund claim. Due to the uncertainty of the claim, the Company, in accordance with its
accounting policies, has not recorded a tax benefit related to this refund claim.
Earnings (Loss) From Continuing Operations
Earnings from continuing operations for the fourth quarter of 2006 were $17 million, or $.06 per basic and
diluted share, as compared with a loss from continuing operations for the fourth quarter of 2005 of $137
million, or $.48 per basic and diluted share, representing an increase in earnings of $154 million. This
decrease in loss from continuing operations is attributable to the reasons described above.
CONSUMER DIGITAL IMAGING GROUP
Worldwide Revenues
Net worldwide sales for the Consumer Digital Imaging Group (CDG) segment were $1,154 million for the
fourth quarter of 2006 as compared with $1,332 million for the fourth quarter of 2005, representing a
decrease of $178 million, or 13%. The decrease in net sales was comprised of: (1) lower volumes, which
in total decreased fourth quarter sales by approximately 11.3 percentage points, driven primarily by
declines in the consumer digital capture SPG, and (2) declines related to unfavorable price/mix, which
reduced net sales by approximately 3.1 percentage points, driven primarily by the kiosk SPG and the
consumer digital capture SPG. The negative price/mix impact includes the positive effects of an extension
and amendment of an existing license arrangement and a new licensing arrangement, portions of which
were non-recurring. These arrangements provide the Company with a return on portions of historical
R&D investments and similar opportunities are expected to have a continuing impact on the results of
operations. The decreases in volumes and price/mix were partially offset by favorable exchange, which
increased net sales by approximately 1.0 percentage points.
CDG segment net sales in the U.S. were $818 million for the current quarter as compared with $939
million for the fourth quarter of 2005, representing a decrease of $121 million, or 13%. CDG segment net
sales outside the U.S. were $336 million for the fourth quarter of 2006 as compared with $393 million for
the prior year quarter, representing a decrease of $57 million, or 15%.
-6-
7. Net worldwide sales of consumer digital capture products, which include consumer digital cameras,
accessories, memory products, imaging sensors, and intellectual property royalties, decreased 25% in the
fourth quarter of 2006 as compared with the prior year quarter, primarily reflecting volume decreases and
negative price/mix, partially offset by favorable exchange. The negative price/mix impact includes the
positive impacts of an extension and amendment of an existing license arrangement and a new licensing
arrangement, as mentioned above. These arrangements provide the Company with a return on portions of
historical R&D investments and similar opportunities are expected to have a continuing impact on the
results of operations. According to the NPD Group’s consumer tracking service, Kodak EasyShare digital
cameras were number one in unit market share in the U.S. for the fourth quarter and full year 2006. On a
year to date basis through November, the Company remains in the top three unit market share position on
a worldwide basis for consumer digital cameras.
Net worldwide sales of picture maker kiosks/media (the kiosk SPG) increased 27% in the fourth quarter of
2006 as compared with the fourth quarter of 2005, as a result of volume increases and favorable exchange,
partially offset by negative price/mix. Sales continue to be driven by strong consumable sales at retail
locations with 4x6 media volumes increasing 52% versus last year.
Net worldwide sales of the home printing solutions SPG, which includes inkjet photo paper and printer
docks/media, increased 2% in the current quarter as compared with the fourth quarter of 2005 driven by
volume increases and favorable exchange, partially offset by negative price/mix. On a year to date basis
through November, the Company's printer dock held a leading market share position in the U.S., U.K.,
and Australia.
Gross Profit
Gross profit for the CDG segment was $323 million for the fourth quarter of 2006 as compared with $247
million for the prior year quarter, representing an increase of $76 million or 31%. The gross profit margin was
28.0% in the current quarter as compared with 18.5% in the prior year quarter. The 9.5 percentage point
increase was primarily attributable to improvements in price/mix, a reduction in manufacturing costs, and the
favorable impact of foreign exchange. Improvements in price/mix positively impacted gross profit margins by
approximately 6.4 percentage points, due to an extension and amendment of an existing license arrangement
and a new license arrangement, as mentioned above. The impact of the non-recurring portions of these
licensing arrangements contributed approximately 10.7% of revenue to segment gross profit dollars in the
current quarter, as compared with 4.3% of revenue to segment gross profit dollars for similar arrangements in
the year ago quarter. The positive impact of these arrangements was partially offset by negative price/mix in
the kiosk and consumer digital capture SPGs. Additionally, manufacturing cost reductions and operational
improvements increased gross profit margins by approximately 2.6 percentage points, primarily within the
kiosk SPG and consumer digital capture SPG. Foreign exchange further increased gross profit margins by
approximately 0.8 percentage points. These increases were partially offset by volume declines, which reduced
gross profit margins by approximately 0.4 percentage points.
Selling, General and Administrative Expenses
SG&A expenses for the CDG segment decreased $33 million, or 20%, from $165 million in the fourth
quarter of 2005 to $132 million in the current quarter, and decreased as a percentage of sales from 12% for
the fourth quarter of 2005 to 11% for the current quarter. This decrease was primarily driven by a decline
in advertising spending as a result of focused cost reduction activities.
Research and Development Costs
R&D costs for the CDG segment decreased $2 million, or 5%, from $43 million in the fourth quarter of
2005 to $41 million in the current quarter but increased as a percentage of sales from 3% in the prior year
quarter to 4% in the current year quarter.
-7-
8. Earnings From Continuing Operations Before Interest, Other Income (Charges), Net and Income
Taxes
Earnings from continuing operations before interest, other income (charges), net and income taxes for the
CDG segment were $150 million in the fourth quarter of 2006 compared with $40 million in the fourth
quarter of 2005, representing an increase in earnings of $110 million or 275%, as a result of the factors
described above.
FILM AND PHOTOFINISHING SYSTEMS GROUP
Worldwide Revenues
Net worldwide sales for the Film and Photofinishing Systems Group (FPG) segment were $1,013 million
for the fourth quarter of 2006 as compared with $1,201 million for the fourth quarter of 2005, representing
a decrease of $188 million, or 16%. The decrease in net sales was primarily comprised of lower volumes,
which decreased net sales by approximately 16.3 percentage points, driven primarily by declines in the
consumer film capture SPG, the consumer output SPG, and the photofinishing services SPG. Declines
related to negative price/mix, which reduced fourth quarter sales by approximately 1.4 percentage points,
were driven primarily by the consumer film capture SPG and consumer output SPG. These declines were
partially offset by favorable foreign exchange, which increased net sales by approximately 2.0 percentage
points.
FPG segment net sales in the U.S. were $334 million for the current quarter as compared with $408
million for the fourth quarter of 2005, representing a decrease of $74 million, or 18%. FPG segment net
sales outside the U.S. were $679 million for the fourth quarter of 2006 as compared with $793 million for
the prior year quarter, representing a decrease of $114 million, or 14%.
Net worldwide sales of the consumer film capture SPG, including consumer roll film (35mm and APS
film), one-time-use cameras (OTUC), professional films, reloadable traditional film cameras and
batteries/videotape, decreased 26% in the fourth quarter of 2006 as compared with the fourth quarter of
2005, primarily reflecting industry volume declines.
Net worldwide sales for the consumer and professional output SPGs, which include color negative paper
and photochemicals, decreased 10% in the fourth quarter of 2006 as compared with the fourth quarter of
2005, primarily reflecting industry volume declines and unfavorable price/mix, partially offset by
favorable exchange.
Net worldwide sales for the photofinishing services SPG, which includes equipment and photofinishing
services at retail on-site and Qualex in the U.S. and CIS (Consumer Imaging Services) outside the U.S.,
decreased 41% in the fourth quarter of 2006 as compared with the fourth quarter of 2005, reflecting
continuing industry volume declines in the development and processing of consumer films.
Net worldwide sales for the entertainment imaging SPGs, including origination, intermediate, and print
films for the entertainment industry were flat year-over-year.
-8-
9. Gross Profit
Gross profit for the FPG segment was $243 million for the fourth quarter of 2006 as compared with $333
million for the prior year quarter, representing a decrease of $90 million or 27%. The gross profit margin
was 24.0% in the current quarter as compared with 27.7% in the prior year quarter. The 3.7 percentage
point decrease was primarily attributable to increased manufacturing costs, which reduced gross profit
margins by approximately 3.5 percentage points and were largely driven by increased silver costs.
Volume declines reduced gross profit margins by approximately 0.8 percentage points, while negative
price/mix unfavorably impacted gross profit margins by approximately 0.4 percentage points. These
declines were partially offset by favorable exchange, which increased gross profit margins by
approximately 1.1 percentage points.
Selling, General and Administrative Expenses
SG&A expenses for the FPG segment decreased $107 million, or 41%, from $262 million in the fourth
quarter of 2005 to $155 million in the current quarter, and decreased as a percentage of sales from 22% in
the prior year quarter to 15% in the current year quarter. The decline in SG&A was primarily attributable
to cost reduction initiatives.
Research and Development Costs
R&D costs for the FPG segment decreased $9 million, or 45%, from $20 million in the fourth quarter of
2005 to $11 million in the current quarter and decreased as a percentage of sales from 2% in the prior year
quarter to 1% in the current year quarter. The decrease in R&D was primarily attributable to reductions in
spending related to traditional products and services.
Earnings From Continuing Operations Before Interest, Other Income (Charges), Net and Income
Taxes
Earnings from continuing operations before interest, other income (charges), net and income taxes for the
FPG segment were $77 million in the fourth quarter of 2006 compared with earnings of $51 million in the
fourth quarter of 2005, representing an increase of $26 million or 51%, primarily as a result of cost
reductions and the other factors described above.
-9-
10. GRAPHIC COMMUNICATIONS GROUP
During the second quarter of 2006, the Company indicated that, as a result of ongoing integration of
acquisitions within the Graphic Communications Group, it had become increasingly difficult to report
results by the discrete businesses that were acquired. Therefore, results for the GCG segment are reported
using the following SPG structure:
• Digital Prepress Consumables – digital plates, chemistry, media and services
• NexPress Color – equipment, consumables and services for NexPress color products, and direct
image press equipment
• Commercial Inkjet Printing Solutions – Versamark equipment, consumables and service
• Workflow and Prepress – workflow software, output devices, proofing equipment, and services
• Other Digital – electrophotographic black and white equipment and consumables, document scanners
and services, wide format inkjet, imaging services
• Traditional – analog plates, graphics and other films, paper, media equipment, archival products
As the GCG segment completes its integration process and further aligns the discrete businesses, starting
in the first quarter of 2007, the GCG segment results will be reported using the following organizational
structure:
• Enterprise Solutions - workflow software and digital controller development
• Digital Printing Solutions - all inkjet and electrophotographic products, including both equipment and
consumables
• Prepress Solutions - prepress consumables, output devices, and proofing hardware and software
• Document Imaging Business - document scanners and services, and imaging services
Worldwide Revenues
Net worldwide sales for the Graphic Communications Group segment were $974 million for the fourth
quarter of 2006 as compared with $942 million for the prior year quarter, representing an increase of $32
million, or 3%. The increase in net sales was primarily due to: (1) favorable exchange, which increased
net sales by approximately 3.5 percentage points, and (2) volume increases, which increased net sales by
approximately 1.3 percentage points. These increases were partially offset by negative price/mix, which
reduced net sales by approximately 1.3 percentage points.
The volume increases were primarily attributable to the digital prepress consumables SPG, the NexPress
Color SPG, and the workflow and prepress SPG. The negative price/mix impact was primarily driven by
the digital prepress consumables SPG and workflow and prepress SPG, partially offset by price/mix
improvements in the traditional prepress consumables SPG.
Net sales in the U.S. were $307 million for the current quarter as compared with $341 million for the prior
year quarter, representing a decrease of $34 million, or 10%. Net sales outside the U.S. were $667 million
in the fourth quarter of 2006 as compared with $601 million for the prior year quarter, representing an
increase of $66 million, or 11%.
Digital Strategic Product Groups' Revenues
The Graphic Communications Group segment digital product sales are comprised of the digital prepress
consumables SPG; NexPress color SPG; commercial inkjet printing solutions SPG; workflow and
prepress systems SPG; and other digital SPG.
- 10 -
11. Digital product sales for the Graphic Communications Group segment were $835 million for the fourth
quarter of 2006 as compared with $785 million for the prior year quarter, representing an increase of $50
million, or 6%. The increase in digital product sales was primarily attributable to increases in the digital
prepress consumables SPG, the NexPress color SPG, and the workflow and prepress SPG, partially offset
by declines in other digital products and services.
Net worldwide sales of digital prepress consumables increased 14% in the current quarter as compared
with the prior year quarter, primarily driven by strong volume increases and favorable exchange.
Net worldwide sales for the NexPress color SPG increased 40% primarily driven by a revenue increase in
NexPress color equipment and consumables. The installed base of digital production color presses
continues to grow, with average monthly page volumes increasing 63% in the current quarter versus the
prior year quarter.
Net worldwide sales for the workflow and prepress SPG increased 5% in the current quarter as compared
with the prior year quarter, mainly driven by volume increases in workflow software and favorable
exchange.
Net worldwide sales of commercial inkjet printing solutions decreased 3% in the current quarter as
compared with the fourth quarter of 2005. Overall sales decreases were largely due to timing of
equipment sales. Year-over-year print volume grew 11%.
Net worldwide sales of other digital products and services decreased 5% in the current quarter as
compared with the prior year quarter, driven primarily by volume declines for electrophotographic black
and white equipment and consumables, and wide format inkjet. These decreases were partially offset by
sales increases in the document imaging business.
Traditional Strategic Product Groups' Revenues
Segment traditional product sales are primarily comprised of sales of traditional graphics products
including films, paper, media, equipment, archival products, and analog plates. These sales were $139
million for the current quarter compared with $157 million for the prior year quarter, representing a
decrease of $18 million, or 11%. The decrease in sales was primarily attributable to declines in analog
plates and graphic films as the industry continues to transition to digital.
Gross Profit
Gross profit for the Graphic Communications Group segment was $280 million for the fourth quarter of
2006 as compared with $272 million in the prior year quarter, representing an increase of $8 million, or
3%. The gross profit margin was 28.7% in the current quarter as compared with 28.9% in the prior year
quarter. The decrease in the gross profit margin of 0.2 percentage points was primarily attributable to
manufacturing and other costs, which negatively impacted gross profit margins by approximately 1.0
percentage points, largely driven by increased silver and aluminum commodity costs. This decline was
partially offset by favorable price/mix, which increased gross profit margins by approximately 0.5
percentage points, and favorable exchange, which positively impacted gross profit margins by
approximately 0.4 percentage points.
Selling, General and Administrative Expenses
SG&A expenses for the Graphic Communications Group segment remained constant at $174 million for
both the fourth quarter of 2006 and 2005 and remained constant as a percentage of sales at 18%. Realized
cost integration savings were offset by redistribution of corporate costs associated with bringing acquired
businesses into the Kodak portfolio.
- 11 -
12. Research and Development Costs
Fourth quarter R&D costs for the Graphic Communications Group segment decreased $20 million, or
29%, from $70 million for the fourth quarter of 2005 to $50 million for the current quarter, and decreased
as a percentage of sales from 7% for the fourth quarter of 2005 to 5% for the current quarter. The year-
over-year decrease was primarily driven by savings realized from integration activities.
Earnings From Continuing Operations Before Interest, Other Income (Charges), Net and Income
Taxes
Earnings from continuing operations before interest, other income (charges), net and income taxes for the
Graphic Communications Group segment were $57 million in the fourth quarter of 2006 compared with
earnings of $28 million in the fourth quarter of 2005, representing an increase of $29 million, or 104%.
This increase in earnings is attributable to the reasons outlined above.
HEALTH GROUP
Worldwide Revenues
Net worldwide sales for the Health Group segment were $660 million for the fourth quarter of 2006 as
compared with $700 million for the prior year quarter, representing a decrease of $40 million, or 6%. The
decrease in sales was attributable to volume declines of approximately 7.6 percentage points, primarily
driven by the radiology film SPG, digital output SPG, and the dental SPG, partially offset by the growth in
the digital capture SPG, and healthcare information solutions SPG. Unfavorable price/mix reduced fourth
quarter sales by approximately 1.0 percentage points, primarily driven by the digital output SPG and
digital capture SPG. These declines were partially offset by favorable exchange, which increased net sales
by approximately 2.8 percentage points.
Net sales in the U.S. were $222 million for the current quarter as compared with $274 million for the
fourth quarter of 2005, representing a decrease of $52 million, or 19%. Net sales outside the U.S. were
$438 million for the fourth quarter of 2006 as compared with $426 million for the prior year quarter,
representing an increase of $12 million, or 3%.
Digital Strategic Product Groups' Revenues
Health Group segment digital sales, which include digital output (DryView laser imagers/media and wet
laser printers/media), digital capture systems (computed radiography and digital radiography equipment),
digital dental systems (practice management software and digital and computed radiography capture
equipment), healthcare information solutions (Picture Archiving and Communications Systems (PACS),
Radiology Information Systems (RIS) and Information Management Solutions (IMS)), and associated
services were $460 million for the current quarter as compared with $470 million for the fourth quarter of
2005, representing a decrease of $10 million, or 2%. This sales decline was driven by declines in the
digital output SPG, partially offset by growth in the digital capture SPG, the digital dental SPG, and the
healthcare information solutions SPG.
Traditional Strategic Product Groups' Revenues
Segment traditional product sales, including analog and dental film, equipment, service, and chemistry,
were $200 million for the current quarter as compared with $230 million for the fourth quarter of 2005,
representing a decrease of $30 million, or 13%. Sales declines were primarily driven by volume decreases
in traditional radiology film products and traditional dental film.
- 12 -
13. Gross Profit
Gross profit for the Health Group segment was $249 million for the fourth quarter of 2006 as compared
with $256 million in the prior year quarter, representing a decrease of $7 million, or 3%. The gross profit
margin was 37.7% in the current quarter as compared with 36.6% in the fourth quarter of 2005. The
increase in the gross profit margin of 1.1 percentage points was principally attributable to decreases in
manufacturing costs, which increased gross profit margins by approximately 2.5 percentage points, and
favorable exchange, which increased gross profit margins by approximately 1.2 percentage points.
Partially offsetting these increases were unfavorable price/mix, which negatively impacted gross profit
margins by approximately 2.1 percentage points, primarily driven by the digital output SPG, digital
capture SPG, and the healthcare information solutions SPG, and volume declines, which decreased gross
profit margins by approximately 0.3 percentage points.
Selling, General and Administrative Expenses
SG&A expenses for the Health Group segment were $132 million, unchanged as compared with the fourth
quarter of 2005, but increased as a percentage of sales from 19% in the prior year quarter to 20% in the
current year quarter. The SG&A expenses in the current quarter include $17 million of spending related
to the Company's exploration of strategic alternatives for the Health Group, offset by cost reduction
activities. The Company announced on January 10, 2007 that it has reached an agreement to sell the
Health Group to Onex Corporation for as much as $2.55 billion. The transaction is expected to close in
the first half of 2007.
Research and Development Costs
Fourth quarter R&D costs decreased $7 million, or 18%, from $38 million in the fourth quarter of 2005 to
$31 million, but remained constant as a percentage of sales at 5%. This decline is primarily attributable to
planned reductions in R&D spending for the Health Group, specifically in the digital output SPG and the
digital capture SPG.
Earnings From Continuing Operations Before Interest, Other Income (Charges), Net and Income
Taxes
Earnings from continuing operations before interest, other income (charges), net and income taxes for the
Health segment decreased $1 million, or 1%, from $87 million for the prior year quarter to $86 million for
the fourth quarter of 2006 due to the reasons described above.
ALL OTHER
Worldwide Revenues
Net worldwide sales for All Other were $20 million for the fourth quarter of 2006 as compared with $22
million for the fourth quarter of 2005, representing a decrease of $2 million, or 9%. Net sales in the U.S.
were $14 million for the fourth quarter of 2006 as compared with $14 million for the prior year quarter.
Net sales outside the U.S. were $6 million in the fourth quarter of 2006 as compared with $8 million in
the prior year quarter, representing a decrease of $2 million, or 25%.
Loss From Continuing Operations Before Interest, Other Income (Charges), Net and Income Taxes
The loss from continuing operations before interest, other income (charges), net and income taxes for All
Other was $72 million in the current quarter as compared with a loss of $61 million in the fourth quarter of
2005.
- 13 -
14. (Loss) Earnings From Discontinued Operations, Net of Income Taxes
There was a loss from discontinued operations in the current quarter of $1 million, or $.00 per basic and
diluted share, as compared with earnings from discontinued operations in the fourth quarter of 2005 of
$148 million, or $.52 per basic and diluted share. The prior year quarter earnings from discontinued
operations were primarily related to a $203 million reversal of certain tax accruals as a result of a
settlement between the Company and the Internal Revenue Service on the audit of the tax years 1993
through 1998. These accruals had been established in 1994 in connection with the Company's sale of its
pharmaceutical, consumer health and household products businesses during that year. The tax accrual
reversals were partially offset by a pension settlement charge of $54 million resulting from the finalization
of the transfer of pension assets to ITT Industries, Inc. (ITT) in connection with the sale of the Company's
Remote Sensing Systems business (RSS) in August 2004.
Loss From Cumulative Effect of Accounting Change, Net of Income Taxes
There was no loss from cumulative effect of accounting change, net of income taxes for the fourth quarter of
2006. The loss from cumulative effect of an accounting change, net of income taxes, of $57 million or $.20
per basic and diluted share for the fourth quarter of 2005 was the result of the Company's adoption of
Financial Accounting Standards Board Interpretation No. (FIN) 47, quot;Accounting for Conditional Asset
Retirement Obligations,quot; as of December 31, 2005. The $57 million charge recorded in the prior year
represents the present value of the Company's asset retirement obligations (net of the related unamortized
asset) relating to facilities with estimated settlement dates, and is primarily related to asbestos remediation
costs.
NET EARNINGS (LOSS)
The consolidated net earnings for the fourth quarter of 2006 were $16 million, or $.06 per basic and
diluted share, as compared with a net loss for the fourth quarter of 2005 of $46 million, or a loss of $.16
per basic and diluted share, representing an increase in earnings of $62 million or 135%. This increase is
attributable to the reasons outlined above.
RESTRUCTURING COSTS AND OTHER
The Company is currently undergoing the transformation from a traditional products and services
company to a digital products and services company. In connection with this transformation, the
Company announced a cost reduction program in January 2004 that would extend through 2006 to
achieve the appropriate business model and to significantly reduce its worldwide facilities footprint. In
July 2005, the Company announced an extension to this program into 2007 to accelerate its digital
transformation, which included further cost reductions that will result in a business model consistent with
what is necessary to compete profitably in digital markets.
In connection with its announcement relating to the extended quot;2004-2007 Restructuring Program,quot; the
Company has provided estimates with respect to (1) the number of positions to be eliminated, (2) the
facility square footage reduction, (3) the reduction in its traditional manufacturing infrastructure, (4) the
total restructuring charges to be incurred, (5) incremental annual savings, and (6) incremental cash
charges associated with these actions.
The actual charges for initiatives under this program are recorded in the period in which the Company
commits to formalized restructuring plans or executes the specific actions contemplated by the program and
all criteria for restructuring charge recognition under the applicable accounting guidance have been met.
- 14 -
15. Restructuring Programs Summary
The activity in the accrued restructuring balances and the non-cash charges incurred in relation to all of
the restructuring programs described below were as follows for the fourth quarter of 2006:
Non- Other
Balance Cash cash Adjustments Balance
(in millions) Sept. 30, Costs Rever- Pay- Settle- and Dec. 31,
2006 Incurred (1) sals ments ments Reclasses (2) 2006
----------- ------------ --------- --------- --------- ------------- -----------
2004-2007 Restructuring Program:
Severance reserve $300 $(10) $ (2) $(111) $ - $ 51 $ 228
Exit costs reserve 24 16 - (17) - 1 24
----- ------ ------ ------ ------- ------ -------
Total reserve $324 $6 $ (2) $(128) $- $ 52 $ 252
==== === === ==== ==== ==== ====
Long-lived asset impairments
and inventory write-downs $- $ 20 $- $- $ (20) $- $-
==== === === ==== ==== ==== ====
Accelerated depreciation $- $ 58 $- $- $ (58) $- $-
==== === === ==== ==== ==== ====
Pre-2004 Restructuring Programs:
Severance reserve $ - $- $- $ - $ - $- $ -
Exit costs reserve 11 - - - - - 11
----- ------ ------ ------ ------- ------ ------
Total reserve $ 11 $- $- $- $- $- $ 11
==== === === ==== ==== ==== ====
Total of all
restructuring programs $335 $ 84 $ (2) $(128) $ (78) $ 52 $ 263
==== ==== === ==== ==== ==== ====
(1) The net severance costs of $(10) million incurred in the current quarter include $58 million of gross severance
charges, which were more than offset by gains on settlements and curtailments of pension obligations of $(68)
million.
(2) The total restructuring charges of $84 million include: (1) pension and other postretirement charges and
credits for curtailments, settlements and special termination benefits, and (2) environmental remediation
charges that resulted from the Company’s ongoing restructuring actions. However, because these charges
and credits relate to the accounting for pensions, other postretirement benefits, and environmental
remediation costs, the related impacts on the Consolidated Statement of Financial Position are reflected in
their respective components as opposed to within the accrued restructuring balances at December 31, 2006.
Accordingly, the Other Adjustments and Reclasses column of the table above includes: (1) reclassifications
to Other long-term assets and Pension and other postretirement liabilities for the position elimination-related
impacts on the Company's pension and other postretirement employee benefit plan arrangements, including
net curtailment and settlement gains, and special termination benefits of $49 million, and (2)
reclassifications to Other long-term liabilities for the restructuring-related impacts on the Company's
environmental remediation liabilities of $1 million. Additionally, the Other Adjustments and Reclasses
column of the table above includes foreign currency translation adjustments of $2 million.
- 15 -
16. The costs incurred, net of reversals, which total $82 million for the three months ended December 31, 2006,
include $58 million and $4 million of charges related to accelerated depreciation and inventory write-
downs, respectively, that were reported in cost of goods sold in the accompanying Consolidated Statement
of Operations for the three months ended December 31, 2006. The remaining costs incurred of $20 million
were reported as restructuring costs and other in the accompanying Consolidated Statement of Operations
for the three months ended December 31, 2006. The severance reserve and exit costs reserve generally
require the outlay of cash, while long-lived asset impairments, accelerated depreciation and inventory
write-downs represent non-cash items.
2004-2007 Restructuring Program
The Company announced on January 22, 2004 that it planned to develop and execute a comprehensive
cost reduction program throughout the 2004 to 2006 timeframe. The objective of these actions is to
achieve a business model appropriate for the Company's traditional businesses, and to sharpen the
Company's competitiveness in digital markets.
The Program was expected to result in total charges of $1.3 billion to $1.7 billion over the three-year
period, of which $700 million to $900 million are related to severance, with the remainder relating to the
disposal of buildings and equipment. Overall, the Company's worldwide facility square footage was
expected to be reduced by approximately one-third. Approximately 12,000 to 15,000 positions worldwide
were expected to be eliminated through these actions primarily in global manufacturing, selected
traditional businesses and corporate administration.
On July 20, 2005, the Company announced that it would extend the restructuring activity, originally
announced in January 2004, as part of its efforts to accelerate its digital transformation and to respond to a
faster-than-expected decline in consumer film sales. As a result of this announcement, the overall
restructuring program was renamed the “2004-2007 Restructuring Program.” Under the 2004-2007
Restructuring Program, the Company expected to increase the total employment reduction to a range of
22,500 to 25,000 positions, and to reduce its traditional manufacturing infrastructure to approximately $1
billion, compared with $2.9 billion as of December 31, 2004. These changes were expected to increase
the total charges under the Program to a range of $2.7 billion to $3.0 billion. Based on the actual actions
taken through the end of the fourth quarter of 2006 under this Program and an understanding of the
estimated remaining actions to be taken, the Company expects that the employment reductions and total
charges under this Program will be within the ranges of 25,000 to 27,000 positions and $3.0 billion to $3.4
billion, respectively, as initially indicated in the second quarter 2006 Form 10-Q.
- 16 -
17. The Company implemented certain actions under the Program during the fourth quarter of 2006. As a
result of these actions, the Company recorded charges of $26 million in the fourth quarter of 2006, which
were composed of severance, long-lived asset impairments, exit costs and inventory write-downs of $(10)
million, $16 million, $16 million and $4 million, respectively. The net severance costs of $(10) million
incurred in the current quarter include $58 million of gross severance charges, which were more than offset
by gains on pension curtailments and settlements of $(68) million. The severance costs related to the
elimination of approximately 1,175 positions, including approximately 600 manufacturing, 350
administrative, 175 photofinishing and 50 research and development positions. The geographic
composition of the positions to be eliminated includes approximately 425 in the United States and Canada
and 750 throughout the rest of the world. The reduction of the 1,175 positions and the $6 million charges
for severance and exit costs are reflected in the 2004-2007 Restructuring Program table below. The $16
million charge in the fourth quarter and the $88 million year-to-date charge for long-lived asset
impairments were included in restructuring costs and other in the accompanying Consolidated Statement of
Operations for the three and twelve months ended December 31, 2006, respectively. The charges taken for
inventory write-downs of $4 million and $12 million were reported in cost of goods sold in the
accompanying Consolidated Statement of Operations for the three and twelve months ended December 31,
2006, respectively.
As a result of initiatives implemented under the 2004-2007 Restructuring Program, the Company
recorded $58 million and $285 million of accelerated depreciation on long-lived assets in cost of goods
sold in the accompanying Consolidated Statement of Operations for the three and twelve months ended
December 31, 2006, respectively. The accelerated depreciation relates to long-lived assets accounted for
under the held and used model of SFAS No. 144. The fourth quarter amount of $58 million relates to
$52 million of manufacturing facilities and equipment, $5 million of photofinishing facilities and
equipment, and $1 million of administrative facilities and equipment that will be used until their
abandonment. The year-to-date amount of $285 million relates to $11 million of photofinishing facilities
and equipment, $271 million of manufacturing facilities and equipment, and $3 million of administrative
facilities and equipment that will be used until their abandonment.
Under this Program, on a life-to-date basis as of December 31, 2006, the Company has recorded charges of
$2,731 million, which was composed of severance, long-lived asset impairments, exit costs, inventory
write-downs, and accelerated depreciation of $1,233 million, $350 million, $252 million, $68 million, and
$828 million, respectively. The severance costs related to the elimination of approximately 23,375
positions, including approximately 6,200 photofinishing, 10,900 manufacturing, 1,375 research and
development and 4,900 administrative positions.
- 17 -
18. The following table summarizes the activity with respect to the charges recorded in connection with the
focused cost reduction actions that the Company has committed to under the 2004-2007 Restructuring
Program and the remaining balances in the related reserves at December 31, 2006:
(dollars in millions)
Long-lived Asset
Exit Impairments
Number of Severance Costs and Inventory Accelerated
Employees Reserve Reserve Total Write-downs Depreciation
-------------- -------------- ---------- ------- -------------------- -----------------
2004 charges 9,625 $418 $ 99 $ 517 $ 157 $ 152
2004 reversals - (6) (1) (7) - -
2004 utilization (5,175) (169) (47) (216) (157) (152)
2004 other adj. &
reclasses - 24 (15) 9 - -
-------- ------ ------ ------ ------- -------
Balance at 12/31/04 4,450 267 36 303 - -
2005 charges 8,125 497 84 581 161 391
2005 reversals - (3) (6) (9) - -
2005 utilization (10,225) (377) (95) (472) (161) (391)
2005 other adj. &
reclasses - (113) 4 (109) - -
-------- ------ ------ ------ ------ -------
Balance at 12/31/05 2,350 271 23 294 - -
Q1, 2006 charges 1,175 90 19 109 38 82
Q1, 2006 reversals - (1) - (1) - -
Q1, 2006 utilization (1,425) (97) (14) (111) (38) (82)
Q1, 2006 other adj.
& reclasses - 6 1 7 - -
-------- ------ ------ ------ ------ ------
Balance at 03/31/06 2,100 269 29 298 - -
Q2, 2006 charges 1,625 141 20 161 14 72
Q2, 2006 reversals - - (1) (1) - -
Q2, 2006 utilization (1,300) (118) (15) (133) (14) (72)
Q2, 2006 other adj.
& reclasses - (12) (4) (16) - -
-------- ------ ------ ------ ------ ------
Balance at 06/30/06 2,425 280 29 309 - -
Q3, 2006 charges 1,650 97 14 111 28 73
Q3, 2006 utilization (1,075) (90) (21) (111) (28) (73)
Q3, 2006 other adj.
& reclasses - 13 2 15 - -
-------- ------ ------ ------ ------ ------
Balance at 09/30/06 3,000 300 24 324 - -
Q4, 2006 charges 1,175 (10) 16 6 20 58
Q4, 2006 reversals - (2) - (2) - -
Q4, 2006 utilization (1,900) (111) (17) (128) (20) (58)
Q4, 2006 other adj.
& reclasses - 51 1 52 - -
-------- ------ ------ ------ ------ ------
Balance at 12/31/06 2,275 $228 $ 24 $ 252 $- $-
===== ==== ==== ==== ==== ====
As a result of the initiatives already implemented under the 2004-2007 Restructuring Program, severance
payments will be paid during periods through 2008 since, in many instances, the employees whose
positions were eliminated can elect or are required to receive their payments over an extended period of
time. Most exit costs have been paid during 2006. However, certain costs, such as long-term lease
payments, will be paid over periods after 2006.
- 18 -
19. The charges of $84 million recorded in the fourth quarter of 2006 included $26 million applicable to the
Film and Photofinishing Systems Group segment, $9 million applicable to the Consumer Digital Imaging
Group segment, $15 million applicable to the Graphic Communications Group segment, and $11 million
applicable to the Health Group segment. The balance of $23 million was applicable to manufacturing,
research and development, and administrative functions, which are shared across all segments.
The restructuring actions implemented during the fourth quarter of 2006 under the 2004-2007 Restructuring
Program are expected to generate future annual cost savings of approximately $73 million, of which
approximately $71 million represents future annual cash savings. These cost savings began to be realized
by the Company beginning in the fourth quarter of 2006, and are expected to be fully realized by the end of
2007 as most of the actions and severance payouts are completed. These total cost savings are expected to
reduce future cost of goods sold, SG&A, and R&D expenses by approximately $42 million, $25 million,
and $6 million, respectively.
Based on all of the actions taken to date under the 2004-2007 Restructuring Program, the program is
expected to generate annual cost savings of approximately $1,385 million, including annual cash savings of
$1,331 million, as compared with pre-program levels. The Company began realizing these savings in the
second quarter of 2004, and expects the savings to be fully realized by the end of 2007 as most of the
actions and severance payouts are completed. These total cost savings are expected to reduce cost of goods
sold, SG&A, and R&D expenses by approximately $897 million, $351 million, and $137 million,
respectively.
The above savings estimates are based primarily on objective data related to the Company's severance
actions. Savings resulting from facility closures and other non-severance actions that are more difficult to
quantify are not included. The Company has updated its estimate of total annual cost savings under the
extended 2004-2007 Restructuring Program to $1.6 billion to $1.8 billion, as announced in July 2005,
based on the additional charges expected to be incurred, as discussed above.
Pre-2004 Restructuring Programs
At December 31, 2006, the Company had remaining exit costs reserves of $11 million relating to
restructuring plans committed to or executed prior to 2004. Most of these remaining exit costs reserves
represent long-term lease payments, which will continue to be paid over periods throughout and after 2006.
CASH FLOW ACTIVITY
The Company’s cash and cash equivalents decreased $196 million from $1,665 million at December 31,
2005 to $1,469 million at December 31, 2006. The decrease resulted primarily from $947 million of net
cash used in financing activities, $225 million of net cash used in investing activities, partially offset by
$956 million of net cash provided by operating activities.
- 19 -
20. The net cash provided by operating activities of $956 million was primarily attributable to the Company's
net loss of $601 million which, when adjusted for equity in earnings from unconsolidated affiliates,
depreciation and amortization, the gain on sales of businesses/assets, restructuring costs, asset impairments
and other non-cash charges, and provision for deferred taxes, provided $872 million of operating cash.
Additionally, decreases in inventories of $271 million and decreases in receivables of $157 million, offset
by decreases in liabilities excluding borrowings of $116 million, contributed to operating cash. The
decrease in inventories is primarily due to planned inventory reductions driven by corporate initiatives,
seasonality and a decline in demand for traditional products. The decrease in receivables was primarily
caused by the continued industry decline in sales of traditional products and services. The decrease in
liabilities excluding borrowings was primarily a result of a decrease in accounts payable related to the
decrease in inventories. Included in the items above was approximately $315 million of net cash provided
by non-recurring licensing arrangements and $548 million of cash used in restructuring activities during the
period.
The net cash used in investing activities of $225 million was utilized primarily for capital expenditures of
$379 million, partially offset by net proceeds from the sale of assets of $178 million. The net cash used in
financing activities of $947 million was the result of net payments of borrowings of $803 million and
dividend payments of $144 million.
The Company’s primary uses of cash include restructuring payments, debt payments, capital additions,
dividend payments, employee benefit plan payments/contributions, and working capital needs.
Capital additions were $379 million in the twelve months ended December 31, 2006, with the majority of
the spending supporting new products, manufacturing productivity and quality improvements,
infrastructure improvements, equipment placements with customers, and ongoing environmental and
safety initiatives.
During the twelve months ended December 31, 2006, the Company expended $548 million against
restructuring reserves and pension and other postretirement liabilities, primarily for the payment of
severance benefits. Certain employees whose positions were eliminated could elect to receive severance
payments for up to two years following their date of termination.
The Company has a dividend policy whereby it makes semi-annual payments which, when declared, will
be paid on the Company’s 10th business day each July and December to shareholders of record on the close
of the first business day of the preceding month. On May 10, 2006, the Board of Directors declared a semi-
annual cash dividend of $.25 per share payable to shareholders of record at the close of business on June 1,
2006. This dividend was paid on July 18, 2006. On October 17, 2006 the Board of Directors declared a
semi-annual cash dividend of $.25 per share payable to shareholders of record at the close of business on
November 1, 2006. This dividend was paid on December 14, 2006.
The Secured Credit Agreement contains various affirmative and negative covenants customary in a facility
of this type, including two quarterly financial covenants: (1) a consolidated debt for borrowed money to
consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) (subject to
adjustments to exclude any extraordinary income or losses, as defined by the Secured Credit Agreement,
interest income and certain non-cash items of income and expense) ratio of not greater than: 3.50 to 1 as of
December 31, 2006 and thereafter, and (2) a consolidated EBITDA to consolidated interest expense (subject
to adjustments to exclude interest expense not related to borrowed money) ratio, on a rolling four-quarter
basis, of no less than 3 to 1.
- 20 -
21. As of December 31, 2006, the Company's consolidated debt to EBITDA ratio was 1.92 and the consolidated
EBITDA to consolidated interest ratio was 6.07. Consolidated EBITDA and consolidated interest expense,
as adjusted, are non-GAAP financial measures. The Company believes that the presentation of the
consolidated debt to EBITDA and EBITDA to consolidated interest expense financial measures is useful
information to investors, as it provides information as to how the Company actually performed against the
financial requirements under the Secured Credit Facilities, and how much headroom the Company has
within these covenants.
The following table reconciles EBITDA, as included in the computation of the consolidated debt to
EBITDA ratio under the Secured Credit Agreement covenants, to the most directly comparable GAAP
measure of loss from continuing operations before interest, other income (charges), net and income taxes:
Fourth Third Second First
(in millions) Rolling Four Quarter Quarter Quarter Quarter
Quarter Total 2006 2006 2006 2006
Net (loss) earnings $ (601) $ 16 $ (37) $(282) $(298)
Plus:
Interest expense 262 60 74 66 62
Provision for income taxes 254 181 19 51 3
Depreciation and amortization 1,331 315 300 345 371
Non-cash restructuring charges and asset
write-downs/impairments 247 76 38 77 56
Non-cash stock compensation expense 17 - 3 8 6
Non-cash equity in (earnings) loss from
unconsolidated affiliates (1) 7 (1) (7) -
--------- ------- ------- ------- -------
Total additions to calculate EBITDA 2,110 639 433 540 498
Less:
Investment income (60) (16) (14) (13) (17)
--------- ------- ------- -------- -------
Total subtractions to calculate EBITDA (60) (16) (14) (13) (17)
--------- ------- ------- -------- -------
EBITDA, as included in the debt to EBITDA ratio
as presented $ 1,449 $ 639 $ 382 $ 245 $183
===== ==== ==== ===== ====
Fourth Third Second First
(in millions) Rolling Four Quarter Quarter Quarter Quarter
Quarter Total 2006 2006 2006 2006
(Following is a reconciliation to the most directly comparable GAAP measure)
EBITDA, as included in the debt to EBITDA ratio
as presented $ 1,449 $ 639 $ 382 $ 245 $ 183
Depreciation and amortization (1,331) (315) (300) (345) (371)
Non-cash restructuring charges and asset
write-downs/impairments (247) (76) (38) (77) (56)
Other adjustments, net (73) (26) (42) 10 (15)
--------- ------- -------- -------- -------
(Loss) earnings from continuing operations before
interest, other income (charges), net and income taxes $ (202) $ 222 $2 $(167) $ (259)
====== ==== ===== ===== ====
- 21 -
22. The following table reconciles interest expense, as adjusted, as included in the computation of the EBITDA to
interest expense ratio under the Secured Credit Agreement covenants, to the most directly comparable GAAP
measure of interest expense:
Fourth Third Second First
(in millions) Rolling Four Quarter Quarter Quarter Quarter
Quarter Total 2006 2006 2006 2006
Interest expense, as included in the EBITDA to
interest expense ratio $ 239 $ 55 $ 62 $ 62 $ 60
Adjustments to interest expense for purposes of the
covenant calculation 23 5 12 4 2
-------- -------- ------- ------- ------
Interest expense $ 262 $ 60 $ 74 $ 66 $ 62
===== ===== ==== ==== ====
Adjustments to interest expense relate to items that are not debt for borrowed money, including interest relating
to capital leases and interest relating to tax matters.
- 22 -
23. CAUTIONARY STATEMENT PURSUANT TO SAFE HARBOR PROVISIONS OF THE PRIVATE
SECURITIES LITIGATION REFORM ACT OF 1995
Certain statements in this report may be forward-looking in nature, or quot;forward-looking statementsquot; as
defined in the United States Private Securities Litigation Reform Act of 1995. For example, references to
expectations for the Company's successful monetization of intellectual property, the closing of the sale of
the Health Group, employment reductions, costs of and savings from the restructuring programs, and
achievement of the Company’s digital business model are forward-looking statements.
Actual results may differ from those expressed or implied in forward-looking statements. In addition, any
forward-looking statements represent the Company's estimates only as of the date they are made, and
should not be relied upon as representing the Company's estimates as of any subsequent date. While the
Company may elect to update forward-looking statements at some point in the future, the Company
specifically disclaims any obligation to do so, even if its estimates change. The forward-looking
statements contained in this report are subject to a number of factors and uncertainties, including the
successful:
• execution of the digital growth and profitability strategies, business model and cash plan;
• implementation of the cost reduction programs;
• transition of certain financial processes and administrative functions to a global shared services model
and the outsourcing of certain functions to third parties;
• implementation of, and performance under, the debt management program, including compliance
with the Company's debt covenants;
• development and implementation of product, go-to-market and e-commerce strategies;
• protection, enforcement and defense of the Company's intellectual property, including defense of our
products against the intellectual property challenges of others;
• implementation of intellectual property licensing and other strategies;
• completion of information systems upgrades, including SAP, the Company's enterprise system
software;
• completion of various portfolio actions;
• reduction of inventories;
• integration of acquired businesses;
• improvement in manufacturing productivity and techniques;
• improvement in receivables performance;
• improvement in supply chain efficiency; and
• implementation of the strategies designed to address the decline in the Company's traditional
businesses.
The forward-looking statements contained in this report are subject to the following additional risk
factors:
• inherent unpredictability of currency fluctuations, commodity prices and raw material costs;
• competitive actions, including pricing;
• changes in the Company's debt credit ratings and its ability to access capital markets;
• the nature and pace of technology evolution;
• changes to accounting rules and tax laws, as well as other factors which could impact the Company's
reported financial position or effective tax rate;
• general economic, business, geo-political and regulatory conditions;
• market growth predictions;
• continued effectiveness of internal controls; and
• other factors and uncertainties disclosed from time to time in the Company's filings with the
Securities and Exchange Commission.
Any forward-looking statements in this report should be evaluated in light of these important factors and
uncertainties.
- 23 -
24. EASTMAN KODAK COMPANY
CONSOLIDATED STATEMENT OF OPERATIONS - UNAUDITED
(in millions, except per share data)
Three Months Ended Twelve Months Ended
December 31 December 31
-------------------------- -------------------------
2006 2005 2006 2005
Net sales $3,821 $4,197 $13,274 $14,268
Cost of goods sold 2,814 3,230 9,906 10,650
-------- -------- --------- --------
Gross profit 1,007 967 3,368 3,618
Selling, general and
administrative expenses 595 767 2,389 2,668
Research and development costs 170 212 710 892
Restructuring costs and other 20 159 471 690
-------- -------- --------- -------
Earnings (loss) from continuing
operations before interest, other income
(charges), net and income taxes 222 (171) (202) (632)
Interest expense 60 67 262 211
Other income (charges), net 36 55 118 44
-------- -------- --------- --------
Earnings (loss) from continuing
operations before income taxes 198 (183) (346) (799)
Provision (benefit) for income taxes 181 (46) 254 555
-------- -------- --------- --------
Earnings (loss) from continuing
operations $ 17 $ (137) $ (600) $ (1,354)
===== ===== ===== =====
(Loss) earnings from discontinued
operations, net of income taxes $ (1) $ 148 $ (1) $ 150
===== ===== ===== =====
Cumulative effect of accounting
change $- $ (57) $- $ (57)
===== ===== ===== =====
NET EARNINGS (LOSS) $ 16 $ (46) $ (601) $(1,261)
===== ===== ===== ======
Basic and diluted net earnings (loss)
per share:
Continuing operations $ .06 $ (.48) $ (2.09) $(4.70)
Discontinued operations - .52 - .52
Effect of accounting change - (.20) - (.20)
-------- -------- --------- ---------
Total $ .06 $ (.16) $ (2.09) $ (4.38)
===== ===== ===== =====
Number of common shares used in
basic net loss per share 287.3 287.2 287.3 287.9
Incremental shares from assumed
conversion of options 0.2 - - -
------- ------- --------- ---------
Number of common shares used in
diluted net loss per share 287.5 287.2 287.3 287.9
===== ===== ===== =====
- 24 -
25. EASTMAN KODAK COMPANY
CONSOLIDATED STATEMENT OF FINANCIAL POSITION - UNAUDITED
(in millions)
December 31, December 31,
2006 2005
ASSETS
CURRENT ASSETS
Cash and cash equivalents $1,469 $1,665
Receivables, net 2,669 2,760
Inventories, net 1,202 1,455
Deferred income taxes 108 100
Other current assets 109 116
--------- ---------
Total current assets 5,557 6,096
--------- ---------
Property, plant and equipment, net 2,842 3,778
Goodwill 2,196 2,141
Other long-term assets 3,556 3,221
--------- ---------
TOTAL ASSETS $14,151 $15,236
===== ======
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable and other current
liabilities $ 4,144 $ 4,187
Short-term borrowings 64 819
Accrued income taxes 588 483
--------- ----------
Total current liabilities 4,796 5,489
OTHER LIABILITIES
Long-term debt, net of current portion 2,714 2,764
Pension and other postretirement
liabilities 4,008 3,476
Other long-term liabilities 1,281 1,225
--------- ---------
Total liabilities 12,799 12,954
SHAREHOLDERS’ EQUITY
Common stock at par 978 978
Additional paid in capital 881 867
Retained earnings 5,967 6,717
Accumulated other comprehensive loss (671) (467)
--------- ---------
7,155 8,095
Less: Treasury stock at cost 5,803 5,813
--------- ---------
Total shareholders’ equity 1,352 2,282
--------- ---------
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY $14,151 $15,236
====== ======
- 25 -
26. EASTMAN KODAK COMPANY
CONSOLIDATED STATEMENT OF CASH FLOWS - UNAUDITED
(in millions)
Twelve Months Ended
December 31
--------------------------
2006 2005
Cash flows relating to operating activities:
Net loss $ (601) $(1,261)
Adjustments to reconcile to net cash provided by
operating activities:
Loss (earnings) from discontinued operations 1 (150)
Loss from cumulative effect of accounting
change - 57
Equity in earnings from unconsolidated affiliates (1) (12)
Depreciation and amortization 1,331 1,402
Purchased research and development - 54
Gain on sales of businesses/assets (65) (78)
Restructuring costs, asset impairments and
other non-cash charges 141 195
Provision for deferred taxes 67 343
Decrease in receivables 157 228
Decrease in inventories 271 306
Decrease in liabilities excluding
borrowings (116) (118)
Other items, net (229) 214
-------- --------
Total adjustments 1,557 2,441
-------- --------
Net cash provided by continuing operations 956 1,180
-------- --------
Net cash provided by discontinued
operations - 28
-------- --------
Net cash provided by operating activities 956 1,208
-------- --------
Cash flows relating to investing activities:
Additions to properties (379) (472)
Net proceeds from sales of assets 178 130
Acquisitions, net of cash acquired (3) (984)
(Investments in) distributions from
unconsolidated affiliates (19) 34
Marketable securities - purchases (135) (194)
Marketable securities - sales 133 182
-------- --------
Net cash used in investing activities (225) (1,304)
-------- --------
Cash flows relating to financing activities:
Net decrease in borrowings with
original maturity of 90 days or less (11) (126)
Proceeds from other borrowings 765 2,520
Debt issuance costs - (57)
Repayment of other borrowings (1,557) (1,672)
Dividend payments (144) (144)
Exercise of employee stock options - 12
-------- --------
Net cash (used in) provided by financing
activities (947) 533
-------- --------
Effect of exchange rate changes on cash 20 (27)
-------- --------
Net (decrease) increase in cash and cash equivalents (196) 410
Cash and cash equivalents, beginning of year 1,665 1,255
-------- --------
Cash and cash equivalents, end of quarter $1,469 $1,665
===== =====
- 26 -
27. Net Sales from Continuing Operations by Reportable Segment and All Other - Unaudited
(in millions)
Three Months Ended Twelve Months Ended
December 31 December 31
-------------------------------- -------------------------------
2006 2005 Change 2006 2005 Change
Consumer Digital Imaging Group
Inside the U.S. $ 818 $ 939 - 13% $1,872 $2,034 - 8%
Outside the U.S. 336 393 - 15 1,048 1,181 - 11
-------- ------- ----- ------- --------- ------
Total Consumer Digital Imaging Group 1,154 1,332 - 13 2,920 3,215 -9
-------- ------- ----- ------- --------- ------
Film and Photofinishing Systems Group
Inside the U.S. 334 408 -18 1,359 1,767 - 23
Outside the U.S. 679 793 -14 2,797 3,558 - 21
-------- ------- ---- ------- --------- ------
Total Film and Photofinishing Systems
Group 1,013 1,201 -16 4,156 5,325 - 22
-------- ------- ---- ------- --------- ------
Graphic Communications Group
Inside the U.S. 307 341 - 10 1,248 1,079 + 16
Outside the U.S. 667 601 + 11 2,384 1,911 + 25
-------- ------- ----- ------- --------- ------
Total Graphic Communications Group 974 942 +3 3,632 2,990 + 21
-------- ------- ----- ------- --------- ------
Health Group
Inside the U.S. 222 274 - 19 914 1,052 - 13
Outside the U.S. 438 426 +3 1,583 1,603 -1
-------- ------- ----- ------- --------- ------
Total Health Group 660 700 -6 2,497 2,655 -6
-------- ------- ----- ------- --------- ------
All Other
Inside the U.S. 14 14 0 52 47 +11
Outside the U.S. 6 8 - 25 17 36 -53
-------- -------- ----- ------- --------- ------
Total All Other 20 22 -9 69 83 - 17
-------- -------- ----- --------- --------- ------
Consolidated total $ 3,821 $4,197 - 9% $13,274 $14,268 - 7%
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28. Earnings (Loss) from Continuing Operations Before Interest, Other Income (Charges), Net and
Income Taxes by Reportable Segment and All Other - Unaudited
(in millions)
Three Months Ended Twelve Months Ended
December 31 December 31
-------------------------------- ------------------------------
2006 2005 Change 2006 2005 Change
Consumer Digital Imaging Group $ 150 $ 40 +275% $1 $(131) +100%
Percent of Sales 13% 3% 0% (4)%
Film and Photofinishing Systems Group $ 77 $ 51 + 51% $ 358 $ 540 -34%
Percent of Sales 8% 4% 9% 10%
Graphic Communications Group $ 57 $ 28 +104% $ 141 $ (41) +444%
Percent of Sales 6% 3% 4% (1)%
Health Group $ 86 $ 87 - 1% $ 278 $ 370 - 25%
Percent of Sales 13% 12% 11% 14%
All Other $ (72) $(61) - 18% $(214) $(231) + 7%
Percent of Sales (360)% (277)% (310)% (278)%
-------- --------- ------- --------- ------- -------
Total of segments $ 298 $145 +106% $ 564 $ 507 + 11%
Percent of Sales 8% 3% 4% 4%
Restructuring costs and other (82) (295) (768) (1,118)
Legal settlement 6 (21) 2 (21)
Interest expense (60) (67) (262) (211)
Other income (charges), net 36 55 118 44
-------- -------- ------- --------- -------- -------
Consolidated earnings (loss) from
continuing operations before income
taxes $ 198 $(183) + 208% $ (346) $(799) + 57%
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