Kodak axed its financial guidance for the rest of this year due to continued economic weakness and currency changes, becoming the latest company to report deteriorating conditions in the global economy.
In recent weeks, Kodak "has seen the dramatic slowdown in consumer spending continue and worsen," the company said in a statement on Wednesday. Businesses are also reducing spending, credit markets remain very tight and real estate remains weak, making sales of Kodak's surplus assets more difficult, it said.
Moreover, dramatic changes in the value of the U.S. dollar in countries where the company sources and sells its products are also hurting revenue and earnings.
"There is an unprecedented amount of uncertainty surrounding the economic environment and most signs indicate that we may be facing a prolonged global recession," said Antonio Perez, chairman and CEO of Kodak, in the statement. He remains confident Kodak is financially strong and able to manage the economic downturn, the statement says.
These factors prompted Kodak to drop its remaining 2008 financial guidance and the company said it now expects revenue growth, earnings and cash generation to be below the guidance it offered on Oct. 30.
Kodak will update investors when it announces fourth quarter and full year earnings on Jan. 29 of next year.