Thursday, July 21, 2011

Nokia: further losses in the second quarter

The world of mobile phones, Finnish Nokia, published Thursday, July 21, further losses in the second quarter. Nokia, struggling for over three years, suffered a net loss more severe than expected, from 368 million euros, against a profit of 227 million euros a year earlier, according to his financial report.

Analysts on average expected a loss of 104 million euros, according to Dow Jones, the second negative result after the historic loss for the third quarter of 2009. In the second quarter, Nokia posted a further decline in sales of 7% to 9.28 billion euros, slightly less than feared. The number of phones sold plunged 20% to 88.5 million units, against 111 million a year earlier.

Nokia, which has an alliance with the U.S. Microsoft to launch phones to counteract the rise of the Apple iPhone and smartphones with Google's Android system is in turmoil trying to regain share market. The giant announced the elimination of four thousand jobs and outsourcing of three thousand due to the phasing out of its own operating system, Symbian, for the benefit of the Microsoft Windows Phone.

"The challenges we face in our strategic transformation have arisen more than we expected in the second quarter of 2011," said Nokia CEO Stephen Elop, the financial report of the group. ACTION AT LOWEST group, which employed the end of June one hundred thirty-eight thousand people (seventy-five miles, Nokia Siemens) also indicates that it will "accelerate" its savings plan with "multiple sources", including job losses and departures not replaced.

Investors seemed relieved: the beginning of the afternoon at the Helsinki Stock Exchange, the action of the Finnish giant gained 5.7% to 4.31 euros. But the title is changing, however, to the lowest: in the past four euros in mid-July, it dropped to its lowest level since 1997. Nokia was worth only 14.2 billion euros in stock at the close Wednesday, three times less than in April 2010 and seven times less than in November 2007, the year of the launch of Apple's iPhone.

No comments:

Post a Comment