Eastman Kodak Company
Kodak Completes Sale of Remote Sensing Systems to ITT Industries
ROCHESTER, N.Y., Aug. 13 -- Eastman Kodak Company (NYSE: EK) announced that it has completed the sale of its Remote Sensing Systems (RSS) operations to ITT Industries, Inc. (NYSE: ITT) for $725 million in cash.
RSS was part of Kodak’s Commercial & Government Systems’ operation within the Commercial Imaging Group and its customers include NASA, other U.S. government agencies, and aerospace and defense companies. Kodak’s RSS operation, including Research Systems, Inc. (RSI), had sales last year of approximately $425 million.
All 2,000 RSS and RSI employees will transfer to ITT Industries, with Rochester as the headquarters for ITT’s new Space Systems Division. James Manchisi, president of RSS, will join ITT Industries Space Systems Division as President, reporting to Henry J. Driesse, President, ITT Industries, Defense.
“The sale of RSS is consistent with Kodak’s digitally oriented strategy to focus on the consumer, commercial and health imaging markets,” said Daniel A. Carp, Chairman and Chief Executive Officer, Eastman Kodak Company. “By selling RSS, we have sharpened our focus on our key growth markets, and have provided RSS employees with the opportunity to work for a company that serves the aerospace and defense markets.”
This action by Kodak further aligns its product portfolio with its business strategy. The proceeds of the sale will further strengthen the company’s financial position and flexibility during its business model transition.
Net of tax and transaction costs, but subject to post-closing adjustments, Kodak expects to realize approximately $475 million in cash. The sale of RSS will result in an after-tax gain of approximately $390 million, excluding the potential impact of any settlement or curtailment gains or losses that may be incurred in connection with pension and postretirement benefit plans.
Headquartered in White Plains, New York, ITT Industries suppliesadvanced technology products and services in key markets including:defense communication, opto-electronics, information technology andservices; fluid and water management including water treatment;electronic interconnects and switches; and other specialty products. Thecompany generated $5.63 billion in 2003 sales and employs approximately 36,000 people around the world.
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Actual results may differ from those expressed or implied in forward-looking statements. In addition, any forward-looking statements represent our estimates only as of the date they are made, and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change. The forward-looking statements contained in this press release are subject to a number of factors and uncertainties, including:
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About Eastman Kodak Company and infoimaging
Kodak is the leader in helping people take, share, print and view images – for memories, for information, for entertainment. The company is a major participant in infoimaging, a $385 billion industry composed of devices (digital cameras and flat-panel displays), infrastructure (online networks and delivery systems for images) and services & media (software, film and paper enabling people to access, analyze and print images). With sales of $13.3 billion in 2003, the company comprises several businesses: Health, supplying the healthcare industry with traditional and digital image capture and output products and services; Graphic Communications Group, offering on-demand color printing and networking publishing systems consisting of three wholly owned subsidiaries: Encad, Inc., NexPress Solutions, and Kodak Versamark; Commercial Imaging, offering image capture, output and storage products and services to businesses and government; Display & Components, which designs and manufactures state-of-the-art organic light-emitting diode displays as well as other specialty materials, and delivers optics and imaging sensors to original equipment manufacturers; and Digital & Film Imaging Systems, providing consumers, professionals and cinematographers with digital and traditional products and services.