Thursday, December 11, 2008

Kodak 'remains commited' to digital print


Kodak has said it "remains committed" to its Graphics Communications division, despite speculation that it would no longer invest in digital printing technology.

The affirmation came as the US-based company announced that it would miss its revenue growth target for the coming year, blaming the reduction in businesses’ capital expenditure and printers’ inability to raise finance for new equipment purchases for the move.

Speculation followed that the manufacturer faced a possible break-up, with Shannon Cross, an analyst at Cross Research, being quoted in The Times as having said the company would need to make some "hard decisions" over its inkjet business as the investment required in its Nexpress and Stream technologies to continue its development "may be too high".

However, Kodak told PrintWeek: "Kodak is a financially solid company, we are confident in our strategy, and we remain committed to our Graphic Communications business.

"We will continue to invest to strengthen Kodak's position as a leader in digital printing solutions."

Speaking as the company announced its results forecast, Antonio Perez, chairman and chief executive, said: "There is an unprecedented amount of uncertainty surrounding the economic environment and most signs indicate that we may be facing a prolonged global recession."

He said, however, that Kodak was financially strong and well positioned to manage through this economic downturn.

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