Kodak could sell medical division

Kodak has said it is considering selling its health-imaging division after reporting a loss for the sixth-straight quarter, due partly to the popular transition from film to digital photography. The company reported a loss of $0.34 (18 pence) per share, which makes x-ray film and digital x-ray equipment for health providers across the world.

The healthcare part of Kodak accounts for approximately 20 per cent of its shares and despite increased revenues, net loss ballooned to $298 million. Much of the loss is due to the $197 million in restructuring charges. Sales in the consumer side of the business fell by ten per cent because of the boom in digital photography.

Chief executive Antonio Perez said the company’s restructuring was on track, but added in a statement: “If [the health group] were to be sold, the board would have to decide what to do with those proceeds.”

The Financial Times reports Mr Perez as commenting: “The group needs an infusion of capital, to say the least.”

Last month Kodak’s health group announced that the introduction of its picture archiving communications system would go online in two Glasgow hospitals this summer, as part of a project to replace every Scottish hospital’s archiving and x-ray imaging systems with a new, instant access digital system. Kodak says the project is the largest contract it has received yet for its picture archiving system.

In 2001, Kodak Health became one of the group’s main three divisions. It can trace its corporate origins back the discovery of the x-ray in 1895.

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