Kodak Cites Cost-Cutting Plan for $12-Million Loss

Eastman Kodak lost $12.2 million in the second quarter of 1986 as the company’s bottom line continued to suffer from unusual costs associated with Kodak’s cost-cutting plan, a company spokesman said.

The loss is the second in three quarters for the 106-year-old company, which, until last year’s final quarter, had not had a net quarterly loss in more than 50 years.

The $12.2-million net loss was in contrast with 1985’s second quarter, when the company had a profit of $164.3 million.

Revenue for the quarter, thanks to strong performances from 35-millimeter and X-ray film in the photographic division and plastic and fibers in the chemical division, was up 10% at $2.69 billion, compared to $2.46 billion for the same time last year.

The $167.8-million charge that Kodak took for unusual costs in the quarter came from several items, including trimming its work force by 10%, writedowns and writeoffs for inventory and equipment, closing a plant in Vincennes, France, and buying back some bonds before their maturity dates.

For detailed data and results of other companies, please see tables, Page 9.