Kodak will continue its pharmaceutical activities

A senior Kodak official said the company still plans to continue its pharmaceutical business even if it does not get a loan from the government.

Kodak CEO Jim Continenza told investors on Tuesday on the company’s quarterly earnings conference call that the company still wants to move forward with its plans to make ingredients used in pharmaceuticals, even with the questions raised over the summer that prompted the federal government to put an end on a $ 765 million loan to the company. Continenza made similar comments at a conference last month owned by the Wall Street Journal.

He reiterated this week that Kodak still sees the pharmaceutical business as part of the company’s overall plans.

“As part of our long-term strategy, we will continue to develop the existing pharmaceutical business, whether or not we have received the potential loan from DFC (US International Development Finance Corp.),” Continenza said at the conference. phone call about this week’s results.

The United States Securities and Exchange Commission opened an investigation a few months ago into questions regarding the timing of the federal loan; congressional panels have also called for inquiries. An internal investigation by Kodak found that the company had not broken the law, but had corporate governance issues.

Wednesday, the The Wall Street Journal reported that five former Kodak executives were able to raise millions of dollars by selling stock options they didn’t own. An official at the company said the error did not result in any inaccuracies in its financial results and that it plans to correct its internal controls by the end of the year.

Kodak said it has seen around $ 5.1 million in compensation expenses related to ex-employees and will attempt to recoup around $ 3.9 million of that amount. In a financial report, the company said “there is no assurance” that Kodak will succeed in its claims against former employees.

When Kodak released its results on Tuesday, the company recorded a 20% drop in revenue and a net loss of $ 445 million, including a one-time accounting charge of $ 416 million.

“Going forward, we will continue to build on our strengths in printing and advanced materials and chemicals, including our existing business in manufacturing pharmaceutical ingredients,” Continenza said.

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