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Kodak to take restructuring charges related to Prosper business

Eastman Kodak Co. expects to take restructuring and related charges of $12 million to $17 million connected to its effort to streamline costs in its Prosper business as it continues to try to sell the operation, a filing Thursday with the Securities and Exchange Commission states.

The costs Kodak expects to incur include $5 million to $7 million related to separation benefits, $5 million to $6 million in non-cash related charges for inventory write-downs, $2 million to $3 million in non-cash related charges for asset write-offs and up to $1 million in other cash-related charges.

Kodak estimates some $3 million to $5 million of the total charges for separation benefits will require cash expenditures. The remainder will be provided in special termination benefits from the company’s defined benefit pension plans.

In late December, Kodak said it would not reach an agreement on the sale of the Prosper business in 2016.

“We anticipated an announcement of an agreement for the sale of the Prosper business by the end of 2016 and remain in talks with potential buyers. We now expect discussions to continue into 2017,” said Philip Cullimore, president of the Enterprise Inkjet and Micro 3D Printing & Packaging divisions.

Details of the sale process remain confidential, the company said.

“The Prosper business has been very strong over the first nine months of 2016 with the placement of 12 presses, more than in any comparable period. We also saw a 41 percent increase in annuity revenues in the third quarter, versus the same period a year earlier,” Cullimore said last month.

The company said it was evaluating ways to streamline the press business to maximize performance and address market opportunities in publishing, high-volume direct mail and packaging.

Kodak has made great progress during 2016 in the development of Ultrastream, the next generation of Kodak inkjet technology, he said.

(c) 2017 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or e-mail [email protected]

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