SPX Flow Inc.—which has its Lightnin subsidiary in Rochester—this week reported an improvement in first quarter organic revenues and earnings, barely missing Street estimates.
Revenues for the quarter ended March 31 were $490.3 million, up from $433.2 million in the first quarter last year. Net income for the quarter was $15.3 million, compared with a $7.4 million loss in the same quarter last year.
Diluted earnings per share were 36 cents, compared with an 18-cent loss in the first quarter 2017. Analysts polled by Zacks Investment Research had expected earnings of 37 cents.
SPX President and CEO Marc Michael said 2018 marks the beginning of the next phase of the company’s journey to transform into a “high performing” operating enterprise.
“With our operating structure successfully established, we are now in the early stages of executing our strategy to drive sustainable growth and continuous improvement,” Michael said. “This strategy is centered on delivering a first-class customer experience by achieving excellence in all phases of our business.”
To accomplish that, Michael said, SPX will focus on three objectives: elevate talent and align capabilities to serve customers; exceed customer expectations through continuous process improvements; and expand SPX’s market presence in certain applications.
For the full year, SPX has reiterated its guidance, expecting EPS in the range of $2.21 to $2.56 and earnings between $240 million and $260 million.
Based in Charlotte, N.C., SPX designs, delivers and services products concentrated in rotating, actuating and hydraulic technologies, as well as automated process systems. The company’s Mt. Read Blvd. subsidiary, Lightnin, manufactures mixers, agitators, aerators and flocculators for fluid processing systems.
Genesee & Wyoming Inc. on Tuesday reported an increase in both revenues and earnings, beating Street estimates for the first quarter.
G&W reported an operating revenues increase of 10.7 percent to $574.7 million from $519.1 million in the first quarter of 2017. Reported operating income improved 14.5 percent to $86.9 million, while adjusted operating income increased nearly 3 percent to $87.4 million.
On a per-share basis, G&W reported diluted earnings of $1.19, compared with 42 cents in the first quarter last year. Adjusted diluted EPS increased more than 32 percent to 70 cents in the quarter.
Analysts polled by Zacks Investment Research had expected earnings of 74 cents on revenue of $569.8 million. Zacks recently had downgraded G&W from a hold rating to a sell rating.
“Although our adjusted diluted EPS increased 32 percent, our financial results in North America were adversely impacted by congestion at several connecting Class 1 railroads that limited car supply, as well as by lower utility coal shipments in the Midwest,” G&W Chairman, President and CEO John Hellmann said in a statement. “Meanwhile, our results in Australia and the U.K./Europe were consistent with our expectations.”
Operating revenues for G&W’s North America segment increased roughly 2 percent to $325.6 million. Reported operating income increased 8 percent to $73.2 million, while adjusted operating income improved less than 1 percent to $73.4 million in the first quarter.
In the first quarter, G&W’s results include a $31.6 million income tax benefit associated with the U.S. Short Line Tax Credit that was enacted in February this year.
G&W noted that the company repurchased 792,921 shares of its Class A common stock for $57.4 million during the quarter. Hellmann noted the repurchase was due to the company’s strong free cash flow generation in the quarter.
Hellmann in 2017 earned a total compensation of $7.4 million—which included a base salary of $875,243, stocks and options of $5.63 million, incentive plan compensation of $724,324 and other compensation of $167,873—according to G&W’s definitive proxy statement filed with the Securities and Exchange Commission in early April. That compares with a 2016 total compensation of $5.1 million. The company will hold its annual shareholders meeting in Stamford, Conn., May 23.
Hellmann in Tuesday’s earnings report said the company was “actively evaluating acquisition and investment opportunities in all geographies” the rail company operates.
“We expect to continue to pursue both traditional M&A opportunities as well as opportunistic share repurchases in 2018,” Hellmann said.
Darien, Conn.-based G&W, which has its administrative base in Rochester, owns and operates short-line and regional freight railroads in the U.S., Canada, the Netherlands and Australia. G&W owns or leases 122 freight railroads worldwide that are organized in 10 operating regions with roughly 8,000 employees and more than 3,000 customers.
Shares of company stock (NYSE: GWR) were up less than 1 percent to $71.39 in Tuesday trading.
Parker Hannifin Corp. on Thursday reported record third-quarter sales and earnings, beating Street estimates.
Sales for the quarter ended March 31 rose 20 percent to $3.75 billion, compared with $3.12 billion last year. Net income for the quarter increased to a record $366.1 million from $238.8 million in the third quarter last year.
On a per-share basis, earnings were a record $2.70, compared with $1.75 in the prior year. Analysts polled by Zacks Investment Research had expected diluted earnings per share of $2.62 on revenue of $3.69 billion for the quarter.
“We achieved record performance this quarter, supported by broad-based demand improvement across our key end markets and regions,” Parker Hannifin Chairman and CEO Tom Williams said in a statement.
For the full year, the company has increased its guidance for earnings to a range of $7.76 to $7.96 per share, or $9.95 to $10.15 per share on an adjusted basis.
“We expect record performance in fiscal year 2018 that will serve as a solid foundation for us to achieve new five-year targets that include 19 percent total segment operating margins and a greater than 10 percent compound annual growth rate in adjusted earnings per share by fiscal year 2023,” Williams said.
Company officials in its earnings release did not address reports that the company plans to close its Kent, Ohio, factory that is part of the company’s Fluid Systems Connectors division. The plant employs more than 50 workers, reports say.
Last week the company announced a quarterly cash dividend of 76 cents per share of common stock. The dividend is payable June 1 to shareholders of record as of May 10. The dividend is a 15 percent increase over the previous quarter.
“This increase in our quarterly dividend reflects the board’s confidence in our consistent cash flow generation and long-term outlook,” said the company’s CFO and Executive Vice President, Finance and Administration Cathy Suever. “Maintaining our dividend increase record, now at 62 consecutive fiscal years and among the top five longest-running dividend-increase records in the S&P 500 Index, remains a top priority for capital allocation.
The Cleveland-based global leader in motion and control technologies employs roughly 100 people at its Fairport Parker Chomerics Division. The facility designs and manufactures injection molded plastic products for automotive, business machine, consumer and industrial customers.
The Parker Chomerics Division is part of Parker Hannifin’s Engineered Materials Group and is a global leader in development and application of electrically and thermally conductive materials in electronics, transportation and alternative energy systems.
Shares of company stock (NYSE: PH) were down nearly 3 percent to $163.54 in brisk trading Thursday morning.
Eastman Kodak Co. last week reported 2017 net earnings of $94 million, which included a $101 million tax benefit due to the release of a valuation allowance in the fourth quarter of the year as a result of increased profits in a location outside the U.S.
For the year ended Dec. 31, 2017, Kodak reported revenues of $1.5 billion, a $112 million decline from fiscal 2016. Company officials blamed the drop on volume and pricing declines within the company’s commercial print business and volume declines in Kodak’s consumer inkjet and industrial film and chemicals businesses.
“2017 was a year of investment in our strategic growth priorities which bodes well for the future,” CEO Jeff Clarke said. “We also eliminated several business initiatives while continuing to reduce cost and drive greater efficiency in the company. We enter 2018 with a stronger growth profile and more productive operations.”
Kodak ended 2017 with a cash balance of $344 million, down from $434 million at the end of 2016.
Revenue for the fourth quarter was $414 million, compared with $432 million in the fourth quarter of 2016, a decline of $18 million. The company’s largest division, its Print Systems Division, posted a 6 percent decline in fourth-quarter revenue; for the full year, PSD revenues were down 7 percent.
In the third quarter, the imaging company announced it would eliminate some 425 positions companywide. It was unclear how Rochester might be affected by the layoffs.
Currently, 260 positions have been eliminated with an annual cost-savings of $20 million, officials said last week. Actions have been taken to eliminate an additional 155 positions in 2018, which, combined with other employee-related actions will result in a savings of $18 million.
“We will continue to execute on position eliminations in the first half of 2018 to deliver the targeted savings,” Kodak CFO David Bullwinkle said. “Our total headcount will be approximately 5,600 after these reductions.”
Kodak stock (NYSE: KODK) started the year at $3.15. Shares closed Friday at $5.60
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Shares of IEC Electronics Corp. stock (NYSE: IEC) are trending upward in the second half of February, despite a first-quarter net loss announced earlier this month.
IEC shares were trading at $4.06 midday Wednesday, up from $3.68 on Feb. 6, a day before the company announced its first-quarter results. Company shares are up 50 cents from Feb. 21 last year.
The Wayne County electronic contract manufacturing services provider reported revenues for the quarter ended Dec. 29 of $21.2 million, compared with $21 million for the first quarter last year. The company recorded a net tax benefit of roughly $1 million in the quarter due to the 2017 Tax Cuts and Jobs Act.
IEC reported a net loss for the first quarter of $500,000, or 5 cents per diluted share. That compares with a net loss of $900,000, or 9 cents per diluted share, in the first quarter last year.
“Our fiscal 2018 first quarter revenue results were disappointing in terms of conversion of backlog. As we continue to build momentum on our path to growth, we entered the fiscal quarter with a high percentage of new programs that were scheduled to be manufactured,” IEC President and CEO Jeffrey Schlarbaum said in a statement.
Schlarbaum said the company encountered several internal and external challenges that inhibited the execution of IEC’s plan, including global supply chain challenges associated with component shortages, as well as customer controlled delays.
“That being said, despite the lower than expected conversion rate in the fiscal 2018 first quarter, we are optimistic about the remainder of fiscal 2018 as we see our sales pipeline and backlog continue to grow,” he added.
Schlarbaum said IEC’s transition to a growth company has been challenging.
“The rate at which our company is experiencing new programs and backlog growth is something that has not been experienced in many years and at times might make our execution plans a bit unpredictable due to the complexity of the on-boarding process, as well as the global electronic component supply situation,” he explained.
Schlarbaum noted that the company had entered into a $1.5 million equipment line term loan line of credit with M&T Bank that should allow for expansion of the business.
IEC supports the medical, aerospace and defense and industrial industries. Headquartered in Newark, IEC employs roughly 600 people at two Rochester-area locations and a facility in Albuquerque, N.M.
Genesee & Wyoming Inc. this week reported a rise in operating revenues and earnings, beating Street estimates.
For the fourth quarter ended Dec. 31, G&W posted a nearly 11 percent increase in operating revenues to $571.6 million from $516.5 million in the same quarter last year. Reported operating income more than doubled to $108.2 million, while adjusted operating income increased 2.2 percent to $105.7 million.
Reported diluted earnings per share were $6.81, compared with reported earnings of 15 cents a year ago. Adjusted diluted earnings fell 8.3 percent to 77 cents per share.
Analysts polled by Zacks Investment Research had expected EPS of 75 cents on revenue of $566.05 million.
“Our reported diluted EPS for the fourth quarter of 2017 were $6.81, of which a significant portion was a $372 million benefit from new tax legislation in the United States,” G&W CEO Jack Hellmann said in a statement. “Excluding the tax benefit and certain other items, our adjusted diluted EPS were 77 cents in the fourth quarter, as revenues in each of our geographic segments, North America, Australia and the U.K./Europe, finished the year in line with our expectations.”
Operating revenues from G&W’s North American Operations decreased 0.6 perent to $320.2 million. Reported operating income decreased 10.5 percent to $74.6 million, while adjusted operating income from G&W’s North American operations decreased 13.6 percent to $75.5 million.
G&W’s Australian operations operating revenues increased more than 23 percent to $75.5 million, while reported operating income increased from $2.8 million to $17.6 million. Adjusted operating income increased 66 percent to $22.5 million.
Operating revenues from the company’s U.K./European operations increased more than 32 percent to $175.8 million. Reported operating income was $16 million, while adjusted operating income rose from $2.4 million to $7.6 million in the fourth quarter.
For the full year, G&W reported net income of $549.1 million, compared with $141.1 million for the year ended Dec. 31, 2016. Excluding the impact of certain items, G&W’s adjusted net income for the year was $182 million, compared with $182.4 million in the previous year.
G&W’s diluted earnings per share were $8.79, compared with diluted EPS of $2.42 for the year ended Dec. 31, 2016. G&W’s adjusted diluted EPS for the year were $2.91, compared with adjusted EPS of $3.13 the previous year.
Darien, Conn.-based G&W, which has its administrative base in Rochester, owns and operates short-line and regional freight railroads in the U.S., Canada, the Netherlands and Australia. G&W owns or leases 122 freight railroads organized in nine locally managed operating regions with 8,000 employees serving 3,000 customers.
Separately, G&W announced an investment in and a strategic alliance with Cargomatic Inc., a technology platform connecting shippers and truck carriers with a focus on short-haul markets. Terms of the investment were not disclosed.
Headquartered in Long Beach, Calif., Cargomatic focuses on the fragmented short-haul and drayage trucking markets connecting shippers and carriers real-time via its web platform and apps. The Cargomatic platform facilitates increased truck capacity, real-time tracking and an efficient transportation solution for shippers while providing owner-operator and smaller truck carriers visibility to traffic volumes and operational flexibility.
“The Cargomatic team has built a world-class platform combining the best of technology and streamlined processes to connect shippers and carriers to drive supply chain efficiency. In addition to our investment in Cargomatic, we are pleased to add the Cargomatic platform as an extension of G&W’s rail service at terminal and transload locations across G&W’s U.S. rail network and to work with the Cargomatic team as they expand internationally to Europe and Australia,” said Michael Miller, chief commercial officer of G&W, in a statement. “By extending our first and last mile service offering, Cargomatic not only improves the efficiency of first and last mile logistics between rail and road, but it also simplifies the multimodal touchpoints for our customers.”
Shares of company stock (Nasdaq: GRW) were down more than 4 percent to $70.23 in midday trading Thursday.
Following its announcement of a merger agreement with Fujifilm Holdings Corp., Xerox Corp. on Wednesday reported a fourth-quarter earnings drop and roughly flat sales.
For the quarter ended Dec. 31, Xerox reported revenue of $2.75 billion, compared with $2.73 billion in the fourth quarter a year ago.
The company reported a net loss from continuing operations of $196 million, or 76 cents per diluted share, compared with income of $185 million, or 70 cents per share, in the same period a year ago.
Excluding special items, Xerox reported earnings of $1.04 in the quarter. Analysts polled by Zacks Investment Research had expected EPS of 94 cents.
“One year ago I told the market that to position Xerox for long-term success and deliver shareholder value, we would focus on the growth areas in our industry to improve our revenue trajectory while continuing with our strategic transformation initiatives to increase our profitability and margins,” Xerox CEO Jeff Jacobson said in a statement. “With positive results across all metrics, our fourth-quarter performance clearly demonstrates the progress we have made and enabled us to deliver on our commitments for the full-year.”
For fiscal 2017, Xerox reported total revenue of $10.3 billion, down nearly 5 percent from 2016. Adjusted EPS for the full year was $3.48.
Xerox is expecting earnings of $2.30 to $2.50 per share in fiscal 2018, with adjusted earnings in the range of $3.50 to $3.70. The company expects revenue to decline 2 to 4 percent in 2018.
Xerox Wednesday announced a $6.1 billion agreement that will give Fujifilm 50.1 percent ownership of the combined company, to be known as Fuji Xerox. Xerox shareholders will receive a $2.5 billion special cash dividend, or roughly $9.80 per share, funded from the combined company’s balance sheet, and will own 49.9 percent of the company.
Fujifilm announced it would slash 10,000 Fuji Xerox jobs, or roughly 15 percent of the combined company’s workforce. It is unclear if the job cuts will affect Xerox’s nearly 4,000 local staffers, hundreds of whom are being relocated from the company’s former headquarters downtown to its Webster campus in the coming months.
Xerox shares (NYSE: XRX) skyrocketed to more than $35 Wednesday on news of the acquisition, but have since receded. At midday Thursday, shares were trading at around $33. More than 4 million shares traded hands yesterday.
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Shares of Monro Inc. stock dropped more than 12 percent on Tuesday as the company reported a 34 percent decline in net income for the third quarter.
For the quarter ended Dec. 23, Monro, formerly Monro Muffler Brake Inc., reported net income of $11.6 million, down from $17.6 million in the same period a year ago. On a per-share basis, earnings for the quarter were 35 cents.
Excluding one-time costs of 15 cents—related to management transition costs, litigation settlement costs and newly enacted tax legislation—earnings per share were 50 cents.
Monro reported sales for the quarter of $285.7 million, down from $288.3 million in the third quarter last year. The company attributed the sales decline to a comparable store sales decrease of 3.1 percent in the quarter.
Analysts polled by Zacks Investment Research had expected earnings of 50 cents on revenue of $292.93 million.
“On an adjusted basis, third quarter results were largely in line with our internal expectations,” Monro President and CEO Brett Ponton said in a statement. “By placing a renewed focus on the customer and introducing new training, technology and data-driven analytics in critical areas of the business, we will significantly strengthen our sales execution and drive operational efficiency.”
For the first nine months, Monro increased sales by 9.5 percent to a record $842.2 million from $769.5 million in the same period last year. Net income for the period was $46.5 million, or $1.39 per diluted share, compared with $51.9 million, or $1.56 per diluted share.
Monro also has signed an agreement to acquire seven stores to fill in existing markets. While the company did not disclose financial results of the purchase, Monro officials said the stores are expected to add roughly $7 million in annualized sales in the areas of service and tires.
Based on current sales, business and economic trends, Monro anticipates fiscal 2018 sales of $1.12 billion to $1.135 billion, a roughly 10 percent increase from fiscal 2017. Diluted earnings per share are expected to be in the range of $1.88 to $1.93.
“Thus far in our February fiscal month, we’re encouraged to see comparable store sales accelerate from January levels, driven by higher traffic,” Ponton said. “With a commitment to driving improvement, during the fourth quarter we will evaluate whether to take a portion of the expected fiscal 2019 tax savings, estimated to be between 45 cents and 50 cents in diluted earnings per share, and accelerate investments to fast track our strategic initiatives.
“This underscores our confidence in our strategy, which we believe will create sustainable long-term value for our shareholders,” he added.
Company stock (Nasdaq: MNRO) had dropped to $53.65 per share in midday trading Tuesday.
Transcat Inc. on Tuesday reported record revenues for the third quarter and a 44 percent increase in net income.
For the quarter ended Dec. 23, Transcat reported service revenue of $18.8 million and distribution sales of $21.7 million, for total revenues of $40.5 million, a 7.1 percent increase from the same quarter a year ago.
Net income for the quarter rose to $1.83 million from $1.27 million in the third quarter last year. Diluted earnings per share for the quarter increased 7 cents to 25 cents per share, of which 4 cents was attributed to the Tax Cuts and Jobs Act signed into law in December.
“We are pleased to report strong third quarter results in both segments. This quarter represents record results for our distribution segment as momentum in our core sales as well as rentals continues to be strong,” Transcat’s President and CEO Lee Rudow said in a statement. “Our service segment generated solid organic growth of 7.5 percent and delivered improved productivity with a 30 basis point increase in gross margin. Transcat continues to demonstrate results consistent with the effective execution of our strategic plan.”
Transcat provides state-of-the-art equipment and calibration services for the pharmaceutical, industrial, manufacturing, energy and chemical process industries. The company has been headquartered in Monroe County for more than five decades and has more than 20 locations in the U.S. and Canada.
For the first nine months, Transcat reported revenues of $112.7 million, up nearly 7 percent from the same time period last year. Net income was $3.5 million, compared with $3.1 million last year.
“We believe we are well positioned and on track for a record year in fiscal 2018,” Rudow said. “Our multi-year operational excellence initiatives are starting to gain traction and are positively impacting both segments.”
Transcat will continue to focus on leveraging technology as a competitive advantage and a driver of increased margins, Rudow added.
Shares of company stock (Nasdaq: TRNS) were up more than 13 percent to $16 a share in brisk, midday trading.
CurAegis Technologies Inc. this week reported a third-quarter net loss and cash on hand that will not cover its future working capital requirements.
For the third quarter ended Sept. 30, CurAegis, formerly Torvec Inc., reported a net loss of $1.17 million. On a per-share basis, the company reported a 2 cent loss. That compares with a 3 cent per share loss in the third quarter last year.
The automotive and related technology company reported a third-quarter $1.83 million drop in cash to $180,000. The company reported an accumulated deficit of $79.42 million since its 1996 incorporation.
In its 10-Q filing with the Securities and Exchange Commission, CurAegis officials estimated the company would need $4 million to $4.6 million to sufficiently cover its future working capital requirements.
“This raises substantial doubt as to the company’s ability to continue as a going concern,” the SEC document states. “Management continues to use its best efforts to develop financing opportunities to fund the development and commercialization of the CURA and Aegis products.”
The company’s CURA division is engaged in the fatigue management business, offering real-time alertness monitoring using the myCadian watch. The Aegis division works in the power and hydraulic business.
Since inception, the SEC document reads, CurAegis has financed its operations through the sales of securities and debt financings.
“We need to raise additional funds to meet our working capital needs, to fund expansion of our business, to complete development, testing and marketing of our products, or to make strategic acquisitions or investments,” the filing states.
While the company may experience “operational difficulties and delays” due to a lack of working capital, management believes that sources for additional funds will be available through either current or future investors, according to the filing.
In a separate SEC filing on Tuesday, CurAegis reported that on Nov. 8, Thomas Bonadio, a director of the company, invested $50,000 in 2017 convertible notes, in exchange for 10,000 common stock warrants. The warrants are exercisable for up to 10 years from the date of issue at an exercise price of 50 cents per share. Also on Nov. 8, CurAegis CEO Richard Kaplan invested $125,000 in 2017 convertible notes. Kaplan received 25,000 common stock warrants in connection with the investment.
“We are still in the midst of a minimum of a $3 million raise. We have taken in over $1.6 million so far and are in conversations with many potential investors,” Kaplan said in an October CEO Update, posted on the company’s website. “Our hope is that this will be our last raise and that we will be able to “boot-strap” ourselves from now on.”
Shares of company stock (OTC: CRGS) were trading up 25 percent Wednesday morning from Tuesday’s close of 32 cents.
Vuzix Corp.’s flagship enterprise device, the M300 smart glasses.
Vuzix Corp. on Thursday reported a third-quarter net loss of $5.5 million, despite a 140 percent increase in sales.
For the quarter ended Sept. 30, the Henrietta developer of smart glasses, augmented reality and virtual reality technologies and products posted revenues of $1.41 million, up from $582,549 in the third quarter last year. The increase primarily was a result of the company’s M300 smart glasses sales, as well as engineering services for a version of smart glasses for Toshiba.
Despite those gains, Vuzix reported a $5.5 million quarterly loss. On a per-share basis, the company reported a 28-cent loss. That compares with a third-quarter net loss of $5.04 million last year.
Vuzix ended the quarter with $8.68 million cash on hand and working capital of $10.33 million.
“Scaling up our enterprise smart glasses business in 2017 has come with many challenges, however despite temporary headwinds in manufacturing and product availability, this quarter represents our third consecutive quarter of record revenue,” Vuzix president and CEO Paul Travers said in a statement. “Vuzix now has hundreds of active M300 pilot programs across a variety of industries and continues to see a fundamental shift occurring in the enterprise space from pilot programs moving to commercial volume multi-site rollouts.”
The company’s M300 gross margins continue to improve with its manufacturing process and quality improvements in China, Travers added.
“We are back on track to produce and deliver higher volumes to support our expectations of further growth in revenue in the fourth quarter of 2017 and beyond,” he said. “The stage is set for another record year in 2018 for Vuzix, driven by commercial enterprise smart glasses deployments and higher adoption rates.”
Shares of company of stock (Nasdaq: VUZI) were down slightly Friday at $5.55 from Thursday’s close of $5.70. Vuzix stock has ranged from $4.10 to $8.70 a share over the last year.
Eastman Kodak Co. shares plummeted Thursday morning following an after-market earnings call Wednesday that delivered weak third-quarter results.
For the quarter ended Sept. 30, Kodak delivered a net loss of $46 million, compared with earnings of $12 million in the year-ago quarter. Revenues for the quarter were $379 million, an 8 percent decline from $411 million a year ago.
On a per-share basis, Kodak reported a $1.20 loss, compared with diluted earnings per share of 37 cents in the third quarter last year.
Kodak shares (Nasdaq: KODK) fell more than 25 percent to $3.88 in brisk morning trading. Kodak stock prices have fallen 73 percent in the last year.
“Our third quarter results … are being impacted by a slowdown in the commercial printing industry, delays to market for key programs and investments in our Advanced Materials and 3D Printing Division, a longer sales cycle for brand licensing transactions and higher cost in our film business,” Kodak CEO Jeff Clarke said in Wednesday evening’s earnings call. “We’re implementing decisive actions to address these factors.”
To improve short-term profitability and cash flow, Clarke said, Kodak has planned a number of actions, but selling the company is not one of them, he said when asked by a shareholder if that was an option.
“The board meets and discusses all sorts of strategic options for the company, and no, we have not concluded that the company should be put up for sale,” Clarke said in the call. “We strongly believe that the assets of this company and different business units are worth much more than the current value, and we are continuing to do the best we can to optimize that with additional investments in key areas, cost reductions in others and modernization of assets that we think we will not be able to invest enough in to bring to fruition.”
But Kodak does plan to eliminate 425 positions—saving $45 million—across the company. Company officials did not indicate where those jobs were located, but did say they were incremental to the $21 million of run-rate headcount savings achieved in the first three quarters of the year.
Kodak also is planning a price increase in its largest division, Print Systems Division (PSD), and will reduce the number of investments it makes as a company. Additionally, John O’Grady has been named to lead its consumer and film division.
O’Grady has lead Kodak’s PSD global sales efforts in the last three years, and brings to the role more than 30 years of sales, marketing and engineering experience across consumer and commercial businesses.
Kodak ended the quarter with a cash balance of $342 million, a $28 million decrease from the third quarter last year.
The company maintained its full year revenue expectation of $1.5 billion to $1.6 billion, while adjusting its forecasted earnings to $60 million from $65 million.
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SPX Flow Inc.—which has its Lightnin subsidiary in Rochester—this week reported an improvement in first quarter organic revenues and earnings, barely missing Street estimates.
