Kodak exiting consumer inkjet printer business next yearBy Hanleigh Daniels 1 October 2012 | Categories: news
The struggling Eastman Kodak Company has undergone another setback in its comeback efforts, revealing that it will cease producing consumer inkjet printers next year.
As of 2013, Kodak will wind down sales of consumer inkjet printers and rather focus solely on the commercial segment of the printing market. The company expects that as a result of this decision, its cash flow Stateside will receive a dramatic boost in the first half of 2013.
Kodak asserts that it remains committed to its consumer inkjet printer customers, however, as it will continue to sell ink cartridges for these devices and provide technical service and support to clients and retail beyond this period.
Cut-throat consumer inkjet printer market
The American firm is not the only company battling to remain profitable within the consumer inkjet printer business, as Lexmark also recently revealed new restructuring efforts that will see it exiting the inkjet printer market. Like Kodak, Lexmark also stated that it will continue to provide service, support and aftermarket supplies for its inkjet installed base.
Kodak previously announced that it will focus on commercial, packaging and functional printing solutions as well as enterprise services, whilst selling off its Personalised Imaging and Document Imaging businesses. This after posting a series of financial losses in the wake of the decline of the traditional film business, and filing for Chapter 11 bankruptcy protection at the beginning of this year.
“Kodak is making good progress toward emergence from Chapter 11, taking significant actions to reorganise our core ongoing businesses, reduce costs, sell assets, and streamline our organisational structure,” said Antonio M. Perez, Kodak chairman and CEO.
“Steps such as the sale of Personalised Imaging and Document Imaging, and the Consumer Inkjet decision, will substantially advance the transformation of our business to focus on commercial, packaging and functional printing solutions and enterprise services. As we complete the other key objectives of our restructuring in the weeks ahead, we will be well positioned to emerge successfully in 2013,” concluded Perez.
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