Kodak to focus on digital market

Photography company Eastman Kodak has agreed to buy two businesses for $150m (€121m) from German printing machine group Heidelberger Druckmaschinen.

Kodak is to acquire Heidelberger's 50% stake in NexPress Solutions and Heidelberg Digital as part of its strategy to concentrate on digital photography.

The US company has revised its full-year earnings guidance to between $2.05 (€1.65) to $2.35 (€1.90) per share down from an earlier guidance of between $2.25 (€1.82) to $2.55 (€2.06) issued in January.

The NexPress and Heidelberg Digital operations will increase revenue by about $175m (€141m) during the remainder of 2004.

Kodak's chairman and CEO, Daniel Carp, said: "The acquisition reflects our plan to broaden our product portfolio and expand our lines of digital businesses in a selective, disciplined manner.

"Our focus for the remainder of 2004 will be the integration of the acquisitions we have already announced, all of which are on, or ahead of, plan," Carp added.