April 29, 2010
Today two local companies reported their earnings for the first quarter of 2010.
Eastman Kodak is hailing a rise in sales and earnings when compared to the same quarter of 2009. I am always glad to hear good news out of Kodak. Too bad that this is not such good news. Digging into the report and adjusting the numbers for a $550 million one-time payment for a patent deal with Samsung, the shine comes off a bit. Consumer Digital sales were up smartly - a bright spot. The Graphics business was up about 1%; and film was down 14%, continuing its sad slide into history. Projections for the rest of 2010 are for operating losses, a sign that despite CEO Antonio Perez's assertions, Kodak is not out of the woods yet.
Harris Corp., currently in Rochester but heading to Henrietta, had yet another great report. Sales were up 10% over last year and profits rose 46%. Orders for the year ahead were up 40%, with the Rochester-based RF Communications unit booking $656 million. Harris has been growing, increasing its earnings, and raising its dividend consistently. One caveat is the nature of their field. Defense electronics is a volatile business, and orders can get cancelled if governments change their mind. For the time being momentum is on the side of this company and I applaud our friends, neighbors, and clients who are keys to that momentum.
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).