Moody's lowers outlook on Nokia

Oct 26, 2010
Numerous models of Nokia phones are pictured at the lobby of the Nokia headquarters in Espoo in April 2010. Rating agency Moody's said Tuesday it had lowered its outlook on Finnish mobile phone maker Nokia to "negative" from "stable."

Rating agency Moody's said Tuesday it had lowered its outlook on Finnish mobile phone maker Nokia to "negative" from "stable."

It said the change reflected Moody's concern about the commercial launch of devices under the Symbian 3 platform and measures to be developed and implemented under new management.

Moody's said they might "turn out to be insufficient to reverse Nokia's loss of in mobile phones and converged devices and thus to return group operating margins to above 10 percent, one of Moody's rating criteria."

The agency warned that if Nokia management was unable to halt the erosion in the company's , Nokia's currently "strong" financial position could deteriorate.

Moody's said however it was maintaining the A2 rating on Nokia, citing its "solid financial strength" and absence of net debt.

But it added that it would consider a rating downgrade if over the coming quarters Nokia's market position for high-end smartphones did not recover and if operating margins did not rise above 10 percent of sales.

Operating margin came to 6.2 percent in the third quarter.

Nokia last week announced a return to profit, posting an unexpected 529 million euros (741 million dollars) in net earnings, far outstripping expectations of analysts polled by Dow Jones Newswires.

But the company also announced plans to cut 1,800 jobs.

Explore further: Sony faces 4th ex-employee lawsuit over hack

add to favorites email to friend print save as pdf

Related Stories

Nokia tops earnings forecasts

Jan 28, 2010

Nokia, the world's top mobile phone maker, surprised investors Thursday with a much better-than-expected 2009 performance after it resolved product problems, sending its share price soaring.

Better ad climate gives Gannett a boost

Apr 16, 2010

An improved advertising climate helped USA Today owner Gannett Co. double its quarterly net profit Friday as credit rating agency Moody's changed its outlook for the newspaper sector to stable from negative.

Nokia vows to defend smartphone territory, introduces N8

Jun 14, 2010

Finland's Nokia on Monday vowed to defend its number one position in the lucrative "smartphone" business, where it is under fierce pressure from Apple's iPhone and Research in Motion's Blackberry. The Finnish ...

Recommended for you

Sony faces 4th ex-employee lawsuit over hack

1 hour ago

A former director of technology for Sony Pictures Entertainment has sued the company over the data breach that resulted in the online posting of his private financial and personal information.

Sony tells AFP it still plans movie release

3 hours ago

Sony Pictures boss Michael Lynton denied Friday the Hollywood studio has "caved" by canceling the release of "The Interview," and said it still hoped to release the controversial film.

2012 movie massacre hung over 'Interview' decision

16 hours ago

When a group claiming credit for the hacking of Sony Pictures Entertainment threated violence against theaters showing "The Interview" earlier this week, the fate of the movie's big-screen life was all but ...

Clooney slams skittish Hollywood after Sony hack

23 hours ago

Film star George Clooney slammed the Hollywood movie industry for failing to stand up against the cyber threats that prompted Sony Pictures to cancel release of the movie "The Interview."

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.