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Kodak Hikes Prices for Photographic Paper

Eastman Kodak Co. is raising prices for photographic paper this summer to offset a steady rise in the cost of raw materials, including pulp, silver and petrochemicals.

Kodak, which is in the midst of a mammoth digital overhaul, said Monday that the price hikes will take effect in July, varying from around 4 percent to 10 percent across a wide range of silver halide-based paper made for both consumer and professional markets.

"Over the past several years, Kodak has been absorbing unrelenting increases in the costs of raw materials," the company said in a statement.

"Other costs tied to the escalating price of energy, including transportation and packaging, also have increased," it said. "These pressures have reached the point where they can no longer be offset by Kodak's ongoing productivity programs."

The company has racked up $2.2 billion in restructuring costs since January 2004. It reported a $298 million loss in the first quarter - its sixth straight quarterly loss.

Kodak shares fell 35 cents, or 1.5 percent, to $23.51 in morning trading on the New York Stock Exchange.