The lions share of their profit came from producing the chemicals and equipment used to develop the film. The digital switch wouldn't have "eaten into" their profits, it would have required a massive restructuring and refocusing of the company and they would lose most of their employees in the process.

Of course they didn't, and it happened anyway, just a few years later. I'm not saying it was a good decision, but it would have been an incredibly difficult decision to go the other way.