Eastman Kodak Health Group of Rochester, NY, saw revenues slump and a downturn in operating earnings in the company's fiscal 2006 third quarter (end-September 30).
For the period, the division's sales slid 6% to $597 million. Earnings from operations declined to $68 million, compared with $96 million in the same quarter of 2005.
The company cited higher silver costs, higher depreciation, and costs associated with its exploration of strategic alternatives for its Health Group for the reduced earnings. The company did not provide an update on the status of the initiative.
The company said net sales in the U.S. for the group were $215 million for the current quarter as compared with $260 million for the third quarter of 2005, representing a decrease of $45 million, or 17%. Net sales outside the U.S. were $382 million for the third quarter of 2006 as compared with $375 million for the prior year quarter, representing an increase of $7 million, or 2%.
Health Group digital sales were $399 million for the current quarter as compared with $409 million for the third quarter of 2005, representing a decrease of $10 million, or 2%.
The vendor attributed the sales downturn to declines in the digital output strategic product group (SPG), and noted that this was partially offset by growth in its digital capture SPG, digital dental SPG, and healthcare information solutions SPG.
By AuntMinnie.com staff writers
October 31, 2006
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