Kodak 2008 results to fall short, shares plummet

Citing the "deepening global recession" and changes in the value of the U.S. dollar, Kodak said on Wednesday its 2008 revenue growth, digital revenue growth, earnings from continuing operations, and cash generation would all fall short of its forecast.

Kodak had already slashed that forecast in late October due to higher raw material costs and sluggish sales in its graphics business.

"In recent weeks ... the company has seen the dramatic slowdown in consumer spending continue and worsen. Additionally, businesses are reducing capital expenditures, and as credit markets remain very tight, commercial customers are finding it increasingly difficult to secure financing for new equipment purchases," the company said on Wednesday.

It also said the stronger dollar is eating into revenue and earnings.

Kodak said it plans to intensify its efforts to generate cash, and further streamlining its cost structure. It also said its executives would not receive a 2009 salary increase and it plans to temporarily suspend some payments to their 401(k) retirement accounts.

Nevertheless, Chief Executive Antonio Perez remained optimistic for Kodak's long term performance.

"We have a solid cash position, a modest debt balance, and, despite current lower overall demand, we continue to maintain our market share in key businesses," he said in a statement.

Shares of Kodak fell to $1.86 to $5.34 in premarket trading.

(Reporting by Franklin Paul)