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Nokia Corporation (NOK) Closes Factories
14.06.2012
Finland's Nokia, one of the world's biggest mobile phone makers, on Thursday cut its outlook and said it plans to slash 10,000 jobs by the end of 2013 amid massive additional cost-saving measures.
As part of the cuts, Nokia said it would close facilities in Ulm, Germany, Burnaby, Canada, and its manufacturing plant in Salo, Finland, although its Salo research and development operations would continue.
REVIEW
We view this as a positive move to reduce overhead for a company that is going through restructuring. Being the number 2 mobile phone distributor in the world, Nokia still generate decent revenue with the overheads taking a toll on its profit (lost). Since that they are now using Windows OS, they should cut off the R&D staff for their failed Symbian OS asap to reduce costs.
The sale of VERTU, announced earlier, will also provide with it more flexibility in operations and beef up its slowing diminishing cash holdings. We expect the company to be lean and fit after the restructuring.
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singapore mailing office
No. 14 Robinson Road
Far East Finance Building #13-00 S-048545
ph: +65 6400 9150
fax: +65 6323 1839
sales