Feeds

S&P revises Nokia outlook

From stable to negative...

  • alert
  • submit to reddit

Remote control for virtualized desktops

Ratings agency Standard&Poor's has revised its outlook for handset maker Nokia.

S&P lowered the Finnish firm's rating from stable to negative because of a "marked deterioration of its performance and prospects". Nokia has made three profit warnings since April. The Finnish firm has suffered from its lack of a clamshell design and mid-range camera phone as well as increased competition from other manufacturers.

Leandro de Torres Zabala, credit analyst at S&P, said: "Nokia's mobile-phones operation's market share, profitability, and cash flow generation have eroded materially during the first half of 2004 and pressure is expected to continue in the second half of the year."

Zabala expects Nokia to keep pressure on prices to maintain its leading market share and sales volumes. There will be more pressure on margins from the need for R&D and marketing spend which is needed to "improve handset competiveness".

The decision is unlikely to scare bankers too much because the firm still has cash reserves of €11.5bn. Nokia's overall corporate credit rating remains at "A" - middle of the range. S&P said this could be cut if Nokia's cashflow gets worse. ®

Related stories

Nokia warning send shares falling
Symbian owners foil Nokia takeover
Credit card-sized smart phone ships... sort of

Secure remote control for conventional and virtual desktops

More from The Register

next story
I'll be back (and forward): Hollywood's time travel tribulations
Quick, call the Time Cops to sort out this paradox!
Musicians sue UK.gov over 'zero pay' copyright fix
Everyone else in Europe compensates us - why can't you?
Megaupload overlord Kim Dotcom: The US HAS RADICALISED ME!
Now my lawyers have bailed 'cos I'm 'OFFICIALLY' BROKE
MI6 oversight report on Lee Rigby murder: US web giants offer 'safe haven for TERRORISM'
PM urged to 'prioritise issue' after Facebook hindsight find
BT said to have pulled patent-infringing boxes from DSL network
Take your license demand and stick it in your ASSIA
Right to be forgotten should apply to Google.com too: EU
And hey - no need to tell the website you've de-listed. That'll make it easier ...
prev story

Whitepapers

Go beyond APM with real-time IT operations analytics
How IT operations teams can harness the wealth of wire data already flowing through their environment for real-time operational intelligence.
10 threats to successful enterprise endpoint backup
10 threats to a successful backup including issues with BYOD, slow backups and ineffective security.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Website security in corporate America
Find out how you rank among other IT managers testing your website's vulnerabilities.