Like many other companies Kodak is experiencing difficult times with reported loses of 137 million dollars for the fourth quarter of last year and job losses of up to 4,500 - about 18% of the payroll.
The company expects the economic slow down to continue in the first quarter of 2009 and in response to these market conditions they are restructuring some of their businesses.
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Kodak's OLED business currently needs additional investment to reach its full potential. To achieve this the company will reposition the business by pursuing alliances or other business model changes to reduce risk and costs whilst increasing profit.
"These are extraordinary times," said Antonio Perez Chairman and Chief Executive Officer, Eastman Kodak Company. "In the face of this economic environment we are focusing on those things within our control, and we are taking aggressive yet prudent action to ensure that Kodak remains a strong and enduring competitor. Some of the actions we are taking are especially difficult because they impact our people, whose hard work and continued commitment I appreciate during these difficult times. Despite the challenges facing the economy, we remain optimistic that we will rebuild the momentum we had following our successful strategic transformation. Our future will be driven by our dedicated employees, our powerful brand, and our unmatched expertise at the intersection of imaging science and materials science."
Kodak is expecting a modest economic improvement in the second half of 2009.
IDTechEx notes that around the year 2000 saw hundreds of organisations entering OLED development but now several exit the business every year and only a few will eventually create large and profitable OLED businesses. The same happened with cars in year 1900. So far, the OLED business has seen several companies leave every year, frustrated by the lack of profitable market success, be it for devices or materials. However, it is pleasing that Kodak is not completely abandoning the sector. Despite the global financial meltdown, it is interesting that there is not exactly a shakeout in OLEDs yet because new companies enter all the time, recent examples including PolyPhotonix and Polymertronics.
For more attend Printed Electronics Europe 2009 and read Inorganic and Composite Printed Electronics 2008-2018.
