New head at Nokia and profits above their predictions

This is a new page in the history of the Finnish Nokia with the new chief executive Rajeev Suri to undertake tasks, while also it is formally completed the acquisition of the manufacturing industry of mobile phones from Microsoft. Also, the telecommunications group reported net profit of the manufacturing arm of telecommunications networks (NSN), which exceeded the analysts expectations. Operating profit in the first quarter of 2014 grew by 10% annually. Overall for the group of Nokia this time sales amounted to 2.7 billion euros and 0.04 euros per share, when the last quarter of 2013 were formed in 0.08 euros. The shareholders should feel satisfaction when the Finnish company plans to return to them one billion euro of revenue gained by selling arm of manufacturing mobile phones to Microsoft. The remaining activities of NSN, which generates half of the total revenue will be at the heart of Nokia.

Nokia

Nokia

The new helmsman of the Finnish group coming from within, as previously commanded the sector of telecommunications networks. In 2011 was decided to promote an active program of reorganization of the dismissal of 17,000 people, with a view of revitalizing its profitability. The success of the initiative was credited to Mr Suri, when analysts, with that in mind, considered him as a natural choice for the position of the chief. In 2013 the NSN unit had operating profit increased by 39% as compared to the 1.1 billion from the past year. In a statement, the president of Nokia Risto Silasmaa notes: Rajiv is the right man to take over the company and lead it in the future. He has proven his ability to create clarity in strategy, guiding innovative initiatives and development, to ensure the disciplined implementation of timetables and bring results.

Nokia

Nokia

It should be noted that in addition to changes in Finland, the Microsoft Silicon Valley completes the acquisition of mobile phone manufacturing industry and service of Nokia. The two companies have agreed to work together to build some popular smart phones in a few years. Of course, Nokia with its lead mainly Samsung and then Apple has received the blow in the market in recent years.

Nokia

Nokia

Despite this, Microsoft was not deterred from paying Nokia the amount of 5,44 billion dollars, a slightly higher price than the originally announced, 5.40 billion euros. Talking about the new season of the Finnish group, Mr. Silasmaa stressed, in conclusion: Following our new strategy direction, the talented groups will enable us to fully focus on the fulfillment of our vision to showcase three branches of Nokia, networks, digital maps and navigation and various telecommunication technologies. Not by chance, some analysts believe that the digital navigation activities are the hidden treasure of Nokia.

Nokia

Nokia

By Nicole P.

468 ad

Leave a Reply