Kodak's austerity plan: No 401(k) match, no raises
Weak sales prompts company to freeze executive pay and temporarily suspend its 401(k) match.
NEW YORK (CNNMoney.com) -- Eastman Kodak Co. reported Wednesday that it has withdrawn its 2008 guidance for sales and profit because of the worsening recession and the stronger U.S. dollar.
The move was prompted by a slowdown in consumer spending, the company said. Tight credit markets are also making it hard for Kodak's business customers to finance new equipment.
"There is an unprecedented amount of uncertainty surrounding the economic environment and most signs indicate that we may be facing a prolonged global recession," Antonio M. Perez, Kodak chairman and CEO, said in a prepared statement.
The company announced that its executives would not receive salary increases in 2009 and that it would temporarily suspend for the coming year its 401(k) match.
Kodak (EK, Fortune 500) did not provide a revised forecast. It will update investors on its performance when it announces its fourth-quarter and full-year results on Jan. 29, 2009.
In October, Kodak lowered its guidance, retracting its earlier forecast for sales to be flat or slightly up and saying it now expected a sales decline of 3% to 5% from the $10.3 billion in revenue it reported in 2007. It set its full-year earnings from operations guidance at $200 million to $250 million, down from its earlier forecast of $400 million to $500 million. 
-
Silver lining of the housing bust: A protectionist group was able to buy the land around the iconic sign. More -
Trains of the future are likely skipping you. Despite grand government plans, funding is small. More -
Broadway star Scarlett Johansson is selling her L.A. pad for $2 million less than she paid. More -
Former Merrill Lynch CEO John Thain is being asked to work his magic on small business lender CIT. More -
Lenders are collecting from owners like Vanessa Corey even after a short sale or foreclosure. More -
The $10 electronic hamsters were last year's monster hit. Meet the encore. More
