Kodak posts 4Q loss, plans up to 4,500 job cuts, and Jobless hit new record

[Mrs. Sharon B. Hodge]

Kodak posts 4Q loss, plans up to 4,500 job cuts


ROCHESTER, N.Y. – Eastman Kodak says it is eliminating 3,500 to 4,500 jobs, or 14 percent to 18 percent of its payroll, as it posted a $137 million loss for the fourth quarter.

Kodak says sales and profits from both digital and film-based photography products plummeted.

The Rochester, N.Y.-based company said Thursday that its loss amounted to 51 cents a share in the last three months of the year. That compares with a year-ago profit of $215 million, or 75 cents a share. Excluding one-time items, the loss came to $21 million, or 8 cents a share.

It says sales fell 24 percent to $2.43 billion, as digital revenue fell 23 percent and traditional film-based revenue slumped 27 percent.

Analysts surveyed by Thomson Reuters expected, on average, a profit of 21 cents a share on higher sales of $2.81 billion.

Americans receiving jobless benefits hits record
by Christopher S. Rugabur

WASHINGTON – The number of people receiving unemployment benefits has reached an all-time record, the government said Thursday, and more layoffs are spreading throughout the economy.

The Labor Department reported that the number of Americans continuing to claim unemployment insurance for the week ending Jan. 17 was a seasonally adjusted 4.78 million, the highest on records dating back to 1967. That's an increase of 159,000 from the previous week and worse than economists' expectations of 4.65 million.

As a proportion of the work force, the tally of unemployment benefit recipients is the highest since August 1983, a department analyst said.

The total released by the department doesn't include about 1.7 million people receiving benefits under an extended unemployment compensation program authorized by Congress last summer. That means the total number of recipients is actually closer to 6.5 million people.

http://cosmos.bcst.yahoo.com/up/ynews;_ylt=Atunj7bGdN.GPvx_4J0Aad5v...
Clinton say, "We'll make money the old fashioned way." - video

http://cosmos.bcst.yahoo.com/up/ynews;_ylt=ApSDfjw1yAvqB3UtJdDWqTpv...
Dire economic forecast - video

Businesses continued to hemorrhage jobs Thursday. Ford Motor Co. reported a fourth-quarter loss of $5.9 billion and said its credit arm would cut 20 percent of its work force, or 1,200 jobs. Eastman Kodak Co. said it's cutting 3,500 to 4,500 jobs, or 14 to 18 percent of its work force, as it posted a $137 million quarterly loss on plunging sales of photography products.

In another sign of the deepening recession, the Commerce Department said Thursday that new orders for durable goods dropped by 2.6 percent last month, even worse than the 2 percent decline economists expected. Orders fell 5.7 percent for the year, the second biggest drop on government records, exceeded only by a 10.7 percent plunge in 2001.

The tally of Americans filing new jobless benefit claims rose slightly to a seasonally adjusted 588,000 last week, from a downwardly revised figure of 585,000 the previous week. That also was worse than analysts' forecast of 575,000 new claims.

The number of initial claims is close to the 26-year high of 589,000 reached in late December, though the work force has grown by about half since then.

The four-week average of initial claims, which smooths out fluctuations, rose to 542,500, from 518,250, according to the government report.

The record number of ongoing benefit claims is an indication that laid-off workers are having a difficult time finding new jobs.

The crush of new and continuing claims has overwhelmed many states' ability to process them all. Electronic filing systems crashed in three states earlier this month, and last week Michigan said it would hire 276 workers and open a fourth call center to handle increased phone traffic.

President Barack Obama's $819 billion economic stimulus package, approved by the House Wednesday and now on its way to the Senate, would provide $500 million to the states to upgrade their unemployment insurance systems. The measure also continues the extended unemployment compensation program, which adds up to 33 weeks of benefits, until the end of the year.

Companies have announced a huge number of layoffs this week as they prepare for an extended period of economic weakness. Economists expect the current recession, which began in December 2007, to be the longest since World War II.
Starbucks Corp. on Wednesday said it would cut 6,700 jobs. The coffee company also said it would close 300 underperforming stores, on top of 600 it already planned to shut down.

Time Warner Inc.'s AOL division is cutting up to 700 jobs, or about 10 percent of the online unit's work force. And IBM Corp. has cut thousands of jobs in its sales, software and hardware divisions in the past week, without announcing specific numbers.

Boeing Co., Pfizer Inc., Home Depot Inc. and other U.S. corporate titans also have announced tens of thousands of job cuts this week alone.

Companies have announced about 130,000 layoffs in January, according to an Associated Press tally.