Eastman Kodak Co. yesterday posted a wider second-quarter net loss, hurt by slack film sales, and said it would shift the manufacturing of its digital cameras to Flextronics International Ltd.

The world's top maker of photographic film said the net loss widened to $282 million, or 98 cents a share, from $155 million, or 54 cents a share, a year earlier. Excluding one-time costs from restructuring, inventory and other special items, the loss was 19 cents a share. Analysts were expecting a profit of 22 cents a share, according to Reuters Estimates. Analysts have found it difficult to measure Kodak's overall health due to constant restructuring over the past three years, which has seen some units growing and adding workers, while others are cutting operations and jobs. Revenue fell nine per cent to $3.36 billion.

Since late 2003, Kodak has been beefing up its digital products, hoping to outpace the decline in demand for film, historically its main revenue source. At the same time, it is shrinking its costs by cutting up to 25,000 jobs and trimming manufacturing assets.

Kodak shares closed on Monday at $22.25 on the New York Stock Exchange. The stock is down only about 4.5 per cent this year, but has tumbled 25 per cent over the past four months.