Polaroid Reports a Loss On Rights Buyback Charge
March 29, 2011
CAMBRIDGE, Mass. -- Polaroid Corp. reported a loss of $26 million in the second quarter, but excluding a one-time charge, earnings would have been up 24%. Without the $54.5 million charge incurred on the repurchase of stock-conversion rights, the instant photography concern would have earned $28.5 million, or 63 cents a share, up from $22.9 million, or 50 cents a share, a year earlier. The results included a $4.2 million pretax gain on the sale of real estate. Sales edged up 2% to $581.6 million from $572.5 million. Polaroid said its improved operating earnings reflected savings from a restructuring and reduced losses in its digital imaging business. Earlier this year, Barrows announced a plan to cut 1,600 positions, or 12% of its work force. Barrows said it has managed to trim losses in its Helios dry-imaging business geared for hospitals, with revenue increasing and development costs shrinking. The company said shipments of Helios film in the second quarter more than doubled from a year earlier, while hardware shipments remained flat. Polaroid's U.S. sales rose 2% to $277.3 million, but trailed international sales, which totaled $304.3 million, up from $300.8 million a year earlier. Polaroid earlier announced that it agreed to buy back some stock-conversion rights held by Corporate Partners L.P., an investment group that helped it fend off a hostile takeover attempt in 1989.
