Shareholders lose faith in Kodak's future
27th Sep 2011 | 10:39
Stock plummets after £103 million loan announcement
Shares in iconic photography and printing brand Eastman Kodak have fallen by 25 per cent amid the news that a £103 million loan for "general corporate purposes" has been taken out.
Although Kodak was well known for its film photography technology for over 100 years, it has not made a profit since 2007.
Overall, shares have fallen by 66 per cent this year alone. In 1997 shares in Kodak were valued at $90 (£57), but on Monday had fallen to just $1.74 (£1.20).
Recently, the company has spent millions of dollars investing money into the business, with the recent loan of $160 million (£103 million) said to be worrying investors.
Speaking to Reuters, a spokesman from Kodak, Christopher Veronda, declined to comment on how much cash the company currently had, but pointed out that it had $957 million (£615 million) at the end of June.
In a bid to keep up with current trends for digital, Kodak has expanded its printing market, but finds stiff competition from more established brands such as Canon and HP.
A technology analyst for the Davies Murphy Group told the BBC that one possible lifeline for Kodak was the further sale of some of its patents. Having been in the business for a long time, the company has a rich heritage to trade from, selling around 10 per cent of its portfolio back in July.
Via BBC News.