Nokia shares in free-fall
Once a globally-dominant mobile handset maker, Nokia’s shares continue to tumble in Europe on Monday (9 July 2012) as uncertainty about its future outlook continues to weigh.
In trade on the Helsinki Stock Exchange, Nokia shed 2.65% to €1.51, having dipped below €1.50 for the first time since 1996 earlier in the session.
Having peaked at €65 in June 2000, and with a market cap exceeding €300 billion, Nokia’s market cap currently stands at €5.7 billion.
Similarly in the US, on the New York Stock Exchange, the company has seen its shares decline to $1.92, closing 4.95% off on Friday, and from a 52 week high of $7.38. Nookia’s market value on the exchange is just above $1.18 billion.
In April, the group announced net sales of €7.4 billion for Q1 2012, down from €10.4 billion at the start of last year, with net sales down 30%. It posted a loss of €1.3 billion for the first three months of 2012.
Last month, Nokia said it would implement an additional €1.6 billion in cost cuts by the end of 2013, closing its factories in Germany, Canada and Finland and shedding an additional 10,000 jobs.
It prompted ratings firm Moody’s to slash Nokia’s credit rating to “junk”.
Rumours are yet again abuzz that Nokia will become a take-over target, especially after Microsoft said it would not allow Nokia’s Lumia phones to be upgraded to Windows Phone 8.
Meanwhile, a Finnish startup called Jolla, formed by former Nokia employees, plans to launch its first smartphone later this year.
Jolla will use MeeGo software, created by Nokia and Intel in 2010-2011, for its products, according to Reuters.
Nokia delisted its Swedish Depository Receipts (SDRs) from Stockholm Stock Exchange on June 1, 2007, while the group also delisted from Frankfurt Stock Exchange in March this year.
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