Kodak lowers prices, losing money
ROCHESTER, N.Y. (Reuters) - Faced with continued losses in its digital photographic business, Eastman Kodak Co. (NYSE:EK - news) on Thursday cut the suggested retail price of five popular digital cameras by as much as $100.
``We want more people to enjoy digital picture-taking, and we're committed to making it easy and affordable for them,'' said Philip Gerskovich, a vice president of the photographic giant.
``We've said growing this category was a key initiative for the company. Today's announcement underscores our commitment to that goal.''
Effective immediately, the company lowered prices on five models, including the top-of-the-line Kodak DC290 zoom digital camera, cut to $899 from $999, and the low-end Kodak DVC325 digital video camera, reduced to $99 from $149.
On Monday, Kodak reported that fourth-quarter earnings rose 17 percent, beating Wall Street estimates. But it continued to lose money in its digital business, although the losses narrowed to $17 million in the quarter from $91 million in the year-earlier period. For the full year, digital losses totaled $116 million, down from $262 million in 1998.
Kodak's president and chief executive officer Daniel Carp declined comment, when asked when the digital business would reach profitability.