Press Release: Nokia comments on S&P’s credit rating announcement
Press Release from Nokia a couple of days ago:
http://press.nokia.com/2012/08/15/nokia-comments-on-sps-credit-rating-announcement/
Espoo, Finland – Timo Ihamuotila, Nokia’s Executive Vice President and CFO, comments on today’s rating decision from Standard & Poor’s:
“The impact of Standard & Poor’s decision on the company is limited. As we continue our transition, we are applying a strong focus on cash conservation while simultaneously reducing our operating costs and making our operating model stronger and more agile.
We ended the second quarter 2012 with gross and net cash both higher than a year earlier. With gross cash of EUR 9.4 billion and net cash of EUR 4.2 billion, we have a strong financial position and robust liquidity profile. We also have access to additional liquidity via a revolving credit facility of EUR 1.5 billion. This is entirely undrawn, available to us until March 2016, and comes without any financial covenants.”
Further information on Nokia’s debt instruments can be found in the company’s Q2 2012 Interim Report issued on July 19, 2012.
Category: Nokia
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Perhaps they didn’t hear about the locations, locations, locations?
“This is entirely undrawn, available to us until March 2016, and comes without any financial covenants.”
Shameless Nokia Board! They will never wake up!
What do you mean??
What on Earth are you talking about?
I meant the shameless justifications they are giving to say that Nokia is doing well…
ooooh can’t waith for the next month
I am getting a sense you might know something. Is that correct?
Now imagine if Nokia was still using and developing Symbian and MeeGo, what would their operating costs amount to?
@poiman
Who knows? Maybe they would be able to ship 20+ million smartphones a quarter and making profits in the process instead of posting losses, five quarters in a row and counting, while saving money.
Symbian development cost must less then the licensing cost of WP.
Let me give u an example:
nokia sold 100 million smartphones
Symbian “suggested” R&D cost $1 billion
$10 per device
Ms will charge more than $10 per smartphone
usually around $15
100million smartphones
Total cost $1.5 billion
Now MS might pay something for licensing maps etc. But Nokia could have earned more from the holding their own OS by selling apps, music etc.
Now my boy about Meego, oh dear cost much much lesser .
I think the timing fom S&P was very interesting. Every agency (3 and only USofA) made negative credit announcements before Q2 results which in fact were much more positive than expected, no cash burn and instead positive cash flow YtoY. Q3 is, of course, going to be a tough one but still what has happened in the past 4 months it doesn`t seem plausible to give a further negative credit announcement. What we have in fact seen is the turn around for the company, that is not negative at all.
Well what happens if the Lumia WP7 and WP8 will fail totally ? The answer can be seen from Q2 and the coming Q3 reports. Nokia will be highly profitable even it totally scraps its Lumia line up. It comes without saying that I honestly don`t think that this will be the case but I would expect this to be “worst case scenario”.
Some big boys are with shorts on Nokia stock and this is the reason for the timing of S&P. Nokia CFO did a good job in reacting lightning fast and I think that concerns about a hostile takeover are not futile.
100% certainty is not possible in life and universe but it is 100% sure that there will not be a Q3 profit warning. Please quote me if I am wrong.
Well, whether the timing is suspect or not I am not sure, but there have been several over the last 6 months. Perhaps you are reading a bit too much conspiracy into this?
Reuters:
“It was S&P’s second Nokia downgrade since April. Moody’s has downgraded Nokia three times since April and Fitch dropped Nokia to junk status four months ago.”
Ok, what I tried to say in the previous comment was: What has happened since 04/2012 to date which is very bad for the company.
)
At that time it was predicted that Q2 would be a devastating and total disaster, well it turned out it wasnt`t. How much of negative perceptions have been baked into current price of NOKIA shares ?
( I have invested +100000pcs of shares direct and through our company so my arguments are NOT OBJECTIVE
Who cares american credit rating company`s.
Institutional investors, for one.
You really think they are not in the game ?
They have rules ,sure, and they can go around the rules ,sure.
Of course there are in the game. But I am equally sure that some of them will not invest in junk rated stock.
Don’t believe all the hype Oliver Stone puts out there.
I love Oliver Stone:) And conspiracy theories, only because I believe that everything should be questioned. I think this is quite natural for human.
Regarding the the junk rating of Nokia meaning to institutional ownership, which is recorded, you are right.
Sure, questioning is important and one thing, inventing the answers quite another!
(Note: not saying you were).
Well of course I am inventing the answers because I don`t work for Nokia
I did sit by an Indian guy on a plane who is working for Nokia and he told me that there is nothing left in the mobile business except innovation. I believe that this is still a strong point for Nokia even after the lay offs… You, of all, must know how much Nokia is spending on R&D compared to for eg. Apple the master of innovation.
Yeah, which is a nice way of giving lots of power to an easily bough analyst (lower rating, investors have to sell now because they can not hold junk shares, lowering the price further). These are the geniuses you can thank for the recent credit crisis.
In any case, the rating was junk, wtf is is now? extra junk? more junk? who gives a crap. Considering the timing it looks more like a cheap ploy to lower the share, buy more, and have it go up when they announce the new Lumia range. There has been no event to justify a sudden lowering of the rating, especially just after everything points to an early september reveal (if one was cynical, one might think analyst are selfish assholes, who did hear that news and are trying to again make a quick buck).
Also, Q3 will be not so good, but that’s completely known, and completely insignificant. We know it will happen, and it doesn’t say anything about the future because the new range is only just launched then. The usual unemployed crybabies will come and predict doom and gloom, but that’ll be that.
why that stupid CFO always say every impact is limited on the company ?
when they become fromlargest handset manufacturer in the world to a stupid microsoft OEM is this a limited impact ?
1. Because it is limited. These so called agencies (great job with the fannie and freddie btw) have interests of their own. What should be the Point for credit rating is to give sight for future creditors and their margins for credits. What Nokia said is basically STFU we don`t need credit.
2. They totally and completely didn`t listen to customers. Nothing to do with creditors. You must know that biggest mistakes were made during AAA ( in fact this normally happens with any company )
I am sure that these so called credit rating institutions recommended loans to Greece at one point in time. Their reality distortion field is in the same league as Apples.
Despite the credit rating, I, for one, do not believe that Nokia is heading for bankruptcy. Maybe the rock-bottom is not even that far away and Nokia will rebound back to some degree.
The PROBLEM, however, is that Nokia, under Elop, has become and will become one of the seven dwarfs for the foreseeable future. WORSE, Nokia now is the mobile-equivalent of a white-good company, utterly boring, utterly devoid of vision or the power to shape the future of mobile technology.
This is my last comment about Nokia. The company doesn’t interest me anymore.
yes, with bendable screens,locations services and pureview is utterly boring and devoid of vision /s
yeah.. which company doesn’t have some of those gimmicks in their labs? (And I used to work in a few of them..) What matters is core platform ownership to implement those things at will for real products.
bendable screens: lets wait again
location services: Nokia has to put maps in all platforms, which isn’t part of the plan.
pureview: Good technology and I agree but is it enough .
All the above 3 reasons sounds reasonably small if you compare it to owning your smartphone OS.
sub.