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: Amazon ups Ohio jobs to 1,000, begins collecting sales taxes (Update)

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

The top 10 highest-paid female CEOs

22 hours ago

Female CEOs are outpacing their male colleagues in pay, although they remain vastly outnumbered in the top echelons of American companies.

After security scandal, a tech firm says it's changing focus

May 28, 2015

A Silicon Valley startup says it's shutting down operations and shifting to a new business model after it was blamed earlier this year for turning unwitting computer users into targets for annoying web ads—and hackers.

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.