Kodak posted a 35 percent, or $61 million, year-over-year improvement in its first-quarter loss from continuing operations on sales of $2.09 billion. Revenue from its digital businesses rose 10 percent to $1.37 billion.

“Our first-quarter results are very much in line with our expectations, which included forecasted seasonality, and provide an early indication that Kodak is on a growth track,” said Antonio M. Perez, chairman and CEO. “We delivered strong performance across our major digital businesses.”

For the first quarter of 2008, traditional revenue totaled $72 million, a 13 percent decline from $830 million in 1Q 2007. Kodak reported a first-quarter loss from continuing operations of $114 million, or $0.40 per share, compared with a loss of $175 million, or $0.61 per share, in 1Q 2006.

The Consumer Digital Imaging Group’s sales and results from continuing operations before interest, taxes, and other income and charges for the first quarter were $554 million, a 20 percent increase from the prior-year quarter. Loss from operations for the segment was $111 million, compared with a loss of $75 million in the year-ago quarter, attributed to investment in Kodak’s consumer inkjet business. This was partially offset by earnings improvement in digital cameras and digital picture frames.