Nokia (NOK) on its reduced outlook: From Q2 2012 on, Nokia expects restructuring related cash...


Nokia (NOK) on its reduced outlook: From Q2 2012 on, Nokia expects restructuring related cash outflows of ~€650M in 2012 and €600M in 2013. For Q2'12, "competitive industry dynamics are negatively affecting the Smart Devices business unit to a somewhat greater extent than previously expected." Negative impact expected to continue into Q3. Non-IFRS Devices & Services operating margin in Q2 to be below the Q1 level of negative 3.0%.

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Comments (5)
  • dividend_growth
    , contributor
    Comments (2895) | Send Message
     
    Lumia seems to have also misfired in the US.
    14 Jun 2012, 03:29 AM Reply Like
  • brianngaibh
    , contributor
    Comments (126) | Send Message
     
    glad to see the management is moving...considering an opportunity to buy more...
    14 Jun 2012, 05:30 AM Reply Like
  • dalerabinowitz
    , contributor
    Comments (11) | Send Message
     
    I don't understand why this is bad news. In order for NOK to stop bleeding away its cash reserves it must restructure its operating costs and plants. restructuring costs money in severance etc. especially when it comes to European markets where a 1 years salary must be paid to each laid off employee. The results of this restructuring will only be seen in Q1Q2 2013.
    I see this as good news.
    and why is it expected to continue into Q3'12?? with WP8 launching then it should have at least a MINOR positive impact.

     

    Long NOK
    14 Jun 2012, 06:01 AM Reply Like
  • godalmightee13
    , contributor
    Comments (623) | Send Message
     
    Where's the new news then lol. The news was expected in the restructuring phase and until new W8 - devices released ? The forecast is 1.6B in cost savings by end of year so with every thing as it stands of now -600m loss = £1B profit for early 2013?
    14 Jun 2012, 08:56 AM Reply Like
  • barcaboyvn
    , contributor
    Comments (276) | Send Message
     
    All I can hope for now is they return to profit in Q4/2012 or Q1/2013 at the latest. I would not again invest in a falling European company, since the restructuring cost is enormous!
    14 Jun 2012, 10:12 AM Reply Like
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