ROCHESTER, NY - Eastman Kodak Co., undergoing a tough transition to digital photography, posted a wider loss of $282 million in the second quarter - its seventh quarterly loss in a row - and said Tuesday it is eliminating another 2,000 jobs. Its shares tumbled more than 6 percent.

Largely because of US$214 million in restructuring costs, Kodak lost the equivalent of 98 cents a share in the April-June quarter, compared with a loss of $155 million, or 54 cents a share, a year ago.

Hurt by a rapid slide in film sales, revenues fell 9 percent to $3.36 billion from $3.69 billion in last year's second quarter.

Excluding one-time items, Kodak lost $54 million, or 19 cents a share.

As it drives for greater profitability from its digital businesses, Kodak said it is shifting manufacturing of its digital cameras to Flextronics Ltd. and transferring about 550 employees to the Singapore-based company.

Those will be among roughly 2,000 jobs that Kodak is aiming to eliminate by the end of next year - on top of 22,000 to 25,000 jobs already targeted since January 2004. While the latest cutbacks were triggered by Kodak's historic transformation, the company did not immediately specify where most of them would be made.

Kodak shares fell $1.44, or 6.5 percent, to US$20.81 in morning trading on the

New York Stock Exchange after sinking to a new 52-week low of $20.64 earlier in the day.

A photographic film icon during much of the 20th century, Kodak has struggled to turn profits even while becoming a major player in recent years in the digital arena.

Its overall digital sales in the quarter rose 6 percent to US$1.83 billion, while revenues from film, paper and other traditional, chemical-based businesses slumped 22 percent to US$1.52 billion.

Profits from its digital businesses totaled US$4 million, compared with a US$25 million loss in last year's second quarter. In 2005, for the first time, Kodak generated more annual sales from digital imaging than from film-based photography and earned $161 million in digital profits.

The company reaffirmed that it expects to post an overall operating loss of US$500 million to $850 million in 2006 and earn US$350 million to US$450 million from digital operations. But it lowered its forecast for digital sales growth to around 10 percent from a range of 16 percent to 22 percent.

"We are coming into the final stages of our digital transformation," said Kodak's chief executive, Antonio Perez. "By the end of next year the majority of the restructuring costs will be behind us and Kodak will be positioned for sustained success in digital markets."

A year ago, the 127-year-old company disclosed plans to lay off 10,000 employees on top of 12,000 to 15,000 job cuts targeted in January 2004. It has already cut 20,500 jobs, including 1,630 in the quarter.

In May, Kodak said it was exploring a partnership, an outright sale or other options for its Health Group, maker of X-ray film, medical printers and other health-imaging products and services. The division had revenues of US$2.7 billion last year.

The company acknowledged in 2003 that its analog businesses were in irreversible decline and outlined an ambitious strategy to become a digital heavyweight in photography, medical imaging and commercial printing by 2007.

The transition triggered nearly US$3 billion in acquisitions. But the shutdown of film and other manufacturing operations looks likely to drop its global work force below 50,000, down from 75,100 in 2001 and a peak of 145,300 in 1988.

Film and photofinishing sales slumped to US$1.15 billion from US$1.5 billion a year ago while operating profits dropped to US$113 million from US$244 million.

Health imaging sales fell 6 percent to US$655 million, and operating earnings dipped to US$78 million from US$109 million, partly because of costs associated with exploring alternatives for the 110-year-old business.

In contrast, graphic communications sales jumped 14 percent to US$908 million, driven by its $1.8 billion buyouts of Canada's Creo Inc. and Sun Chemical Corp.'s 50 percent stake in Kodak Polychrome Graphics. Operating earnings reached US$22 million, compared with a loss of US$42 million a year ago.