Kodak shares sink as losses rise

Kodak is to contract out its digital camera manufacturing

Shares in struggling US camera company Eastman Kodak have sunk 14% after it unveiled a large rise in losses.

With the firm still finding it tough to cope with the move from traditional film to digital photography, its second quarter losses widened by 82%.

For the three months to the end of June, its losses totalled $282m (£150m), up from $155m a year earlier.

Kodak also said it was to contract out all of its digital camera manufacturing to Singapore-based Flextronics.

Rochester-based Kodak said that instead it would now focus on the design and sales of its digital cameras.

Kodak's second quarter revenues fell 9% to $3.36bn.

Digital woes

"They [Kodak] are finding that it is very hard to find profitability in digital, so they are having to be more selective of the market opportunities that they pursue," said analyst Shannon Cross of Cross Research.

Kodak is continuing to struggle against the collapse in sales of traditional photographic film, which used to be its main business.

It is currently carrying out a cost-cutting programme that will see up to 27,000 job losses.

It May of last year it announced that its former chief executive Dan Carp was standing down to be replaced by his number two Antonio Perez.

Analysts said Mr Carp paid the price for failing to successfully adapt to the digital future.