We blogged the other day about how the recession may or may not affect the document imaging industry. This morning, some hard data on the subject arrived in the form of Kodak reporting third quarter earnings.
Read the full conference call here.
Chairman and CEO Antonio Perez began by stating:
"Well, a lot has changed since we spoke during the second quarter earnings call. The growing economic crisis which started in the United States has now become global."
He continued:
"When we spoke in July...we were expecting our year-over-year digital revenue growth to be 8% in the second half. While we expect for the rest of this year to gain or maintain market share with our key product lines, as we just did in the third quarter, we are now forecasting the second half year-over-year digital revenues to decline 1 to 5%."
Full year earning projections were drastically lowered. Originally, the Rochester-based company was expecting to garner between $400 and $500 million.
Now, that number is $200 to $250 million.
A main culprit for this situation, Perez noted, was the inability of small to mid-sized business to secure short-term credit, such as are commonly used in the purchase of document imaging and scanning machines.
Still, the news for the industry was not all bad by any means. Scanner sales remained strong, giving industry boosters a reason to hope.
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