Antonio M. Perez, who will replace Daniel A. Carp as CEO of the Eastman Kodak Company June 1, 2005, is seen at the company's annual meeting Wednesday May 11, 2005, in Rochester, N.Y.

Eastman Kodak Co. has two years to find its place in the world of digital photography to avoid fading into history, warned incoming Chief Executive Antonio Perez, a former Hewlett-Packard Co. stalwart who is taking the reins from Kodak veteran Daniel Carp.

The world's biggest film manufacturer said Wednesday that Perez, its No. 2 executive, will replace Carp at the helm on June 1 -- a hand-over that both men said has been on the cards ever since Perez' arrival two years ago. Perez also will succeed Carp as chairman next Jan. 1.

Kodak shares rose after the news.

Kodak acknowledged in 2003 that its chemical businesses, led by silver-halide film, were in irreversible decline. The 124-year-old company is now betting its future on digital terrain - from cameras and online photofinishing to minilabs, X-ray systems and commercial printers.

Perez, 59, who was recruited by Carp in April 2003 to help guide Kodak's development in the faster-paced, more crowded digital imaging arena, said he expects digital businesses to account for about 70 percent of Kodak's sales by 2007 - up from 41 percent last year.

As analog photography rapidly wanes, "we have to grow the digital part of the company really fast because we are still small relative to the competitors we have," Perez told reporters after Kodak's annual shareholders' meeting.

"Our plan is to finish this year with slightly higher revenue from digital than from analog, but still two-thirds of profit will come from the analog business. Those numbers will be changing significantly. That's why we call the next two years as the critical years."

The transition is proving painful. Kodak is eliminating 12,000 to 15,000 jobs by 2007, which will lower its work force to around 50,000 from a peak of 145,300 in 1988.

"A company that doesn't grow is inevitably going to be doing layoffs," Perez said. "The only opportunity for growth is in digital. So that's the answer, let's get the growth as soon as we can or else we'll be over."

Kodak shares rose $1.13, or 4.4 percent, to close at $26.58 on the New York Stock Exchange on Wednesday. Its shares have traded in a 52-week range of $24.63 to $35.19.

Kodak became a global corporate icon on the strength of its traditional film, paper and photofinishing businesses. But Carp led it on a painful path to expand its reach as a digital heavyweight in photography, medical imaging and commercial printing.  

(CNN)

on the cards: likely to happen; foretold and expected but not yet brought to pass（可能）

silver-halide :（鹵化銀）

analog photography :（模擬攝像）

heavyweight : of great importance or influence（重要人物；有影響的人物）