ROCHESTER, N.Y. - Photographic products maker Eastman Kodak Co. reports its results for the third quarter on Thursday. The following is a summary of key developments and analyst opinion related to the period.

OVERVIEW: Kodak, undergoing a tough transition from film to digital imaging, is bracing for a 12 percent to 18 percent drop in 2009 sales because of the economic downturn. Based on 2008 sales of $9.4 billion, its estimate implies sales of $7.7 billion to $8.3 billion. Analysts on average expect sales of $7.32 billion.

Switching the bulk of its business from chemical to electronic technologies cost Kodak $3.4 billion from 2004 through 2007, when it pared its global payroll from 64,000 to 26,900. It is shedding 3,500 to 4,500 jobs this year as the recession erodes sales of digital cameras, film, commercial printers and other products and services. Its work force will shrink to around 20,000 from a 1988 peak of 145,300.

The picture-taking pioneer is investing deeply in consumer inkjet printers and high-speed commercial presses and software while leaning on cash generated by motion-picture film, retailer kiosks and other high-margin products. This year, it aims to double to more than 2 million the number of inkjet printers sold to consumers. Yet that business isn't expected to become profitable until 2011.

Kodak recently completed a $700 million debt refinancing deal by giving two seats on its expanded 14-member board to Kohlberg Kravis Roberts & Co. The private equity fund spend $300 million on Kodak notes due in 2017 and warrants to purchase 40 million Kodak shares at $5.50 a share.

Kodak lost $189 million in the second quarter, its third consecutive quarterly deficit, and finished with $1.1 billion in cash reserves versus $1.3 billion in debt. Revenue from digital businesses fell 28 percent to $1.17 billion and traditional revenue dropped 30 percent to $593 million. The Rochester, N.Y.-based company said the results reflected investments in new digital cameras, video cameras and inkjet ventures aimed at improving cash and profits in the second half.

BY THE NUMBERS: Analysts surveyed by Thomson Reuters expect, on average, third-quarter losses of 19 cents a share on revenue of $1.89 billion. That would be down from 33 cents a share and sales of $2.4 billion in the third quarter of 2008.

Kodak estimates operating losses in the quarter will range from $50 million and $60 million. That excludes any new, nonrecurring intellectual-property arrangements in the quarter.

ANALYST TAKE: Deutsche Bank analyst Chris Whitmore said digital camera pricing remained weak though August, with market-research data indicating shipments were down 10 percent and revenue off 23 percent. In addition, Whitmore said in a note to investors he expects lower commercial print volumes and weaker demand for printing plates will pressure profits. But data suggests year-over-year sales of U.S. consumer film slowed to a 26 percent drop in the third quarter.

WHAT'S AHEAD: Kodak expects its 2009 loss from continuing operations will come in at the low end of its forecast of $200 million to $400 million. In the second half, it is targeting digital sales growth of 1 percent to 3 percent but said overall revenue will decline by 4 percent to 6 percent.

Through 2012, Kodak expects revenue to rise 4 percent a year on average, driven by an 8 percent to 10 percent increase in digital sales.

STOCK PERFORMANCE: Kodak shares rose 61 percent in the quarter.

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On the Net: http://www.kodak.com

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