Kodak says its second-quarter results – including an $82 million improvement from focussing earnings and reducing expenses – show it is on target for sustainable profit by next year.

The company says it continued to make progress in focussing on its most profitable businesses and strengthening operating performance and cost controls.

Earnings improved for its Commercial and Consumer segments by a combined total of $82 million, compared to the same quarter in the prior year as operating expenses were reduced ahead of revenue declines. Gross profit margin increased by two per cent due to an enhanced mix of higher-margin consumables.

The second quarter loss from continuing operations before interest expense, other income (charges), net, reorganisation items, net and income taxes improved by $79 million compared to the prior-year quarter. The cash balance at the end of the quarter stood at $1.257 billion.

Chairman and chief executive Antonio Perez says he is pleased with the progress: ”Our operating results are both improved from last year and also ahead of our plan.

“We are committed to sustaining the progress required to successfully emerge from Chapter 11.”

Kodak’s revenue of $1.077 billion in the second quarter represented a decline of 27 per cent from the year-ago quarter, reflecting the exit of digital cameras, reduced sales of traditional products, participation choices across its businesses, and the negative impact of currency exchange.

On the basis of GAAP, the company reported a net loss of $299 million, compared to $179 million in the second quarter of 2011. Before reorganisation items, the second quarter net loss was $139 million, an improvement of $40 million over the prior-year quarter. Second quarter reorganisation items totalled $160 million, primarily reflecting second quarter non-cash provisions for allowed reorganisation claims.

“The improvement in the operating performance of our businesses reflects the dedication of our people to serving customers and in turn, the positive response we are seeing from our customers,” Perez said. “Across our businesses, we continue to offer unique technologies and strong value propositions. We will continue improving our operating performance while balancing liquidity and growth. We are on the right path to complete our successful reorganisation.”