Kodak, the imaging pioneer, appears to become a casualty as a result of intense competitive pressures in its broad digital portfolio and secular decline in its traditional film business. Moody’s lowered Kodak’s bond rating.
Eastman Kodak became a penny stock as fresh concerns about whether the imaging pioneer could remain solvent led to a 54 per cent fall in its share price. The company issued a statement after the market closed in New York on Friday (2011/09/30) saying it had no intention of filing for bankruptcy. But the damage had been done as its stock hit a historic low of 78 cents, having lost 97 per cent of its value over the past five years.
Kodak had been slow in converting its traditional film business to digital and played catch-up ever since. Digital technology encouraged new entrants, not previously in the photography business, to take on Kodak and bring it down to its knees. It looks like another great American Brand is fading fast. Source: Financial Times