(erielack) A Tense Kodak Moment

["Paul Brezicki" <doctorpb_@_bellsouth.net>]

I can tell you what it means for Kodak: probable oblivion. Another lumbering
dinosaur of America's manufacturing age, it fiddled for years when it should
have been aggressively embracing digital. Reminds me of another paradigm
shift in "format" that occured a few years ago: Baldwin, Lima and Alco
attempted to succeed in the diesel market, but all were eventually swept
away by the newcomers.

Paul B

The latest Business Week magazine, dated October 17, has a two
page-article on Kodak and where it's going.

Digital imaging is coming lots faster than Kodak figured just two years
ago.  Film-based business is shrinking about 25% a year, three times as
fast as they estimated.  Developing markets like China are skipping film
and going directly to digital imaging.

Kodak faces about $1 billion to 'shut down most of its film and paper
capacity' in the next year, plus $750 million in debt due next year.
There is then another $2.7 billion in bonds (due 2010 and later), plus
$2.7 billion Kodak is borrowing now to finance the changes in its
factories.


What does this mean to you, the railfan?



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