Eastman Kodak cuts interim payout and invests in digital

Eastman Kodak have said it is to cut its interim payout to shareholders in favor of investments in the digital markets.

Shares were at $26.55 down 50 cent in pre-open trading right after the company announced the plans.

The stock, a component of the Dow industrials, closed Wednesday $26.99, down 76 cents.

Kodak said it would cut its semi-annual dividend by 65 cents, or 72%, to maintain financial flexibility as it seeks to transform to a digital-oriented company.

The filmmaker said it has a target of achieving $16bn (€13.9bn) in annual revenue by 2006, and $20bn (€17bn) in revenue by 2010.

Kodak's chief financial officer Robert Brust said that in order to reap benefits from digital markets, the company must invest money .

The company hopes to achieve its revenue goals by cutting costs, managing its consumer film and paper businesses for both cash and manufacturing share, and strengthening its commercial, consumer and health businesses.

It also will build new businesses in commercial workflow management, mobile imaging and flat-panel and flexible film displays.