Kodak is simplifying its business structure.
The ailing imaging company announced Tuesday it's turning three business segments into two.
As of January 1, Kodak is now divided into a Commercial Segment and a Consumer Segment.
The market appeared to applaud the move. Battered Kodak shares were up 50 percent by market's close. However, the closing price was still just 60 cents a share.
The announced restructuring reshuffles existing units. It also allows Kodak to separate key printing and commercial film businesses from struggling consumer-oriented businesses like digital cameras. The latter segment will also include Kodak's intellectual property unit.
"The business is changing," says Ulysses Yannas, a broker who follows Kodak for financial adviser Buckman, Buckman & Reid. "And when a business changes you have to change the business."
Yannas says the move makes sense for Eastman Kodak. He also says it "might be an indication that they are not going into bankruptcy," as was reported last week.
"This doesn't make too much sense to me within the context of going into bankruptcy," says Yannas. "You go into bankruptcy and then you reorganize."
Kodak's fourth quarter earnings call is scheduled for January 26.
