Kodak continues digital shift, but can't stop 5th quarterly loss in a row

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Eastman Kodak Co. now sells more digital imaging products than it does formerly traditional film-based photography. But it has been a big costly overhaul - including cutting 25,000 jobs - for the company and it shows in the numbers.

Kodak had a net loss of $52 million in fourth quarter 2005, compared with a loss of $59 million for the same period in 2004. Revenue increased 12 percent to a total of $4.197 billion, an increase from $3.76 billion in the same quarter 2004. However, traditional revenue was $1.514 billion, a 21 percent decline from $1.905 billion.

Kodak's earnings were $151 million, which excludes one-time items such as an income tax refund that contributed to the company's profit by $243 million.
    
In the digital realm, sales represented 54 percent of the company's total revenue in 2005, topping everything including film, paper and other chemical-based products. Revenue from the digital products totaled at $2.67 billion in the quarter, which was even better than the company's October forecast.

Health Group sales were $700 million, down 6 percent. Earnings from operations for the segment were $83 million, compared with $113 million a year ago. Highlights for the quarter included a 45 percent increase in Healthcare Information System sales, Kodak said.