Strong results in its Health Imaging unit helped Eastman Kodak exceed earnings expectations for the third quarter. The Rochester, NY-based vendor reported Q3 earnings of $334 million, up from net income of $96 million in the third quarter of 2001.
Health Imaging was a main contributor to Kodak's gross profit of 38.4%, undoing a previously forecast sequential decline in gross profits, Kodak said. The unit's cost-cutting initiatives, rising productivity and sales are paying off, according to Health Imaging president Dan Kerpelman.
The unit's sales were $565 million for the third quarter, up 4% from the $545 million in the same period last year. Earnings from operations were $126 million, compared with $51 million last year.
The unit will emphasize globalization and developing new products for existing and new markets to achieve long-term growth, Kerpelman said. In Q4, Kodak projects flat sales and higher planned investments in the Health Imaging business.
Kodak chairman and CEO Daniel Carp said the company will also pursue cost-reduction activities, led globally by the firm's various units. These actions will include reducing assets and employment, with 1,300 to 1,700 positions to be eliminated company-wide.
In other Health Imaging news, a multimillion dollar, multiyear partnership service agreement from the New York-Presbyterian Hospital has been renewed, Kodak said. The agreement provides for support of the firm's DirectView CR systems, DirectView PACS, and DryView laser imaging systems.
In Europe, Kodak is collaborating with analog and digital content management firm Front Porch Digital for a multi-site RIS/PACS network at the Reinier de Graaf Hospital in Holland. Front Porch Digital of New York City will be supplying a 50 TB archive to store both images and patient information, according to the companies.
By AuntMinnie.com staff writersOctober 24, 2002
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