More Kodak discontinuations

[Jim Andrada]

http://ireport.cnn.com/topics/726798?hpt=hp_bn1

This from CNN online - sad!

[Richard M. Coda]

Kodak Announces Agreement to Sell Eastman Gelatine Subsidiary

Correct me if I'm wrong, but if they sell their gelatin operation, doesn't that mean that they are out of the film business?

[BrianShaw]

I don't own a gelatin factory but I can buy truckloads of Jello. So could they.

[Tom J McDonald]

Ilford probably doens't own a gelatin company.

[BarryS]

In December 2000, 50 sheets of 8x10 Tri-X was worth 2 shares of Kodak stock. Today, 50 sheets of 8x10 Tri-X is worth 742 shares.

[Roger Cole]

Kodak Announces Agreement to Sell Eastman Gelatine Subsidiary

Correct me if I'm wrong, but if they sell their gelatin operation, doesn't that mean that they are out of the film business?

Not at all. It just means they buy the gelatin they need from the company they sell the operation to. Gelatin is used in so much more, film is a tiny segment of the market.

I don't own a gelatin factory but I can buy truckloads of Jello. So could they.

Ilford probably doens't own a gelatin company.

Nope. As far as I know, no other film company owns their own gelatin company. Well, Fuji may, dunno, but it might well make good business sense to just buy what they need and stop making it themselves. (Then again, I just used the phrase "good business sense" in reference to Kodak so I must be off base somewhere.)

[Brian C. Miller]

Minyanville: Is There a Run on Kodak Film?
Somebody got off their duff and asked around ... the wrong places! But film hoarding isn't taking place because Kodak is going bankrupt, oh, no...!

[Richard M. Coda]

But don't you think buying gelatin from the company they just sold is going to cost more? That means the film will cost more...

[Roger Cole]

But don't you think buying gelatin from the company they just sold is going to cost more? That means the film will cost more...

Not necessarily. Depends on how much of a drain on the main business the gelatin business was, although if the gelatin business is profitable it's hard for me to see why selling it makes much sense. But if it wasn't profitable, or barely so, it might make sense to sell it and be cheaper just to buy the gelatin they need than to make lots more that they have to market and sell.

[MDR]

The Gelatine Business was one of the more profitable segments of Kodak. Perez needed money it's that simple.