Losses, "the wealthy" Nokia what to sell?

-After the "wealthy" Nokia sold dish "jewelry" Vertu, recently the airline to sell the hole in the News York headquarters for brain biotechnology Histogenetics. With the status do eat losses as at present, "the wealthy" whether their sales pitches

 

Risk of depleted cash

Already more than a year since Nokia decided to partner with Microsoft to develop Windows Mobile Phone, new products more or less attracted attention in the mobile market, but that's still not enough to attract users to switch to this platform and has led Nokia to take a lot of stuff.

According to the evaluation of gender analysis, the investment on the platform of Microsoft are making cash reserves decrease rate of Nokia worrying. More serious, financial experts also identified that Nokia will have the risk of depleted cash at the end of 2013 due to loss of the ability to control.

Analysts said that Nokia is extremely cramped objects to its financial stability in the coming months when the debt is increasing. In the past 5 quarters, the heyday of the giant Nokia has quickly passed when the airline to lose to 2.7 billion. With this speed, world analysis for that paragraph 6.3 billion in reserves will quickly "evaporate" after two more years. Going forward, the experts identified Nokia will continue spending 2.54 billion in lost about 3 next quarter, while the more pessimistic predictions also said Nokia will even out cash on 2013.

Analyst Juliano Torii at credit card companies, Societe General said: "Nokia will also be difficult about the possibility of the payment of the bonds short term ends in 2014".

Nokia-the company ever grasped in the hand more than 12 billion in 2007, has released two major bond: 1.6 billion (5.5%) interest rate maturity in 2014, and 638 million (6.75%) interest rate maturity in 2019.

Nokia's spokesperson said that: "the company understands the need to increase the amount of cash in circulation. It is Nokia's important goals at this time. Nokia is making the decisive action to ensure the growth and future success of the company. The main objective of these actions is to reduce costs, increase cash flow and maintain strong financial viability of the company ".

Sell jewelry "gradual" reduction "to help"

Last April, the giant Nokia to receive more of a shock when the airline credit ratings from Standard & Poor's international credit (S & P) has downgraded a tier rating of "Baa2" from "Baa3 level down", this means putting the Nokia to the list of investment companies "should not". That is more difficult than giant mobile area back when the ability to search investment no longer favor as before.

Perhaps the knocked confidence levels have made "home rich" Nokia becomes scarce cash and be forced to sell the "jewelry" value on people. A month ago, the Financial Times reported that Nokia are high-level negotiations to sell brand Vertu for group Permira price of about 268-402 million.

Meanwhile, last week, Nokia decided to sell the Agency's headquarters base in America with extreme losses. 6 years ago, Nokia had to spend up to 30 million to buy at their headquarters in New York, located north of Manhattan, in the industrial town of White Plains, but now "home rich" this forced sale with price 12 million, a price not half right amount spent six years ago.

Dynamics of "selling" hole is made in the context of the airline are faced with declining business situation on the global mobile market. In a loss to 1.2 billion USD, and continued in Q2 losses increased to 1.7 billion.

Don't just sell off the "items" value to increase the amount of cash, Nokia was also forced to cut costs. In late March, Reuters reported that page, Nokia has completed the negotiations on the cut workers at its plant in Salo, Finland, approximately 1,000 employees will be fired.

Under the plan, the process of this cut will take place throughout the year, but focused strongly on stage last June. The cut comes on strong hands took place in the context of Nokia are to undergo reorganization phase full of difficulties, under the hands of the leader of the "Captain" new Stephen Elop.

No light from Lumia

Last month, Apple announced quarterly profit nearly doubled in the quarter 1/2012 as showed strong growth of this brand. Meanwhile, opponents of the iPhone-can demonstrate Lumia competes strongly.

Lumia product line the efforts of Nokia and Microsoft in the smartphone segment and also the attention of users, but simply what Nokia created the Lumia is insufficient and too late, according to Nancy Utterback, researchers credit strategy of Aviva Invertors. Invertors also does not exclude possibility of Nokia will be downgraded further and the company is difficult to reverse the situation.

According to analyst Andy Perkins, bright Friday (18/5), the shares of Nokia were down 1.2% to the lowest level in 16 years and warned that restructuring costs and losses may increase the speed pull the company's sales went down. Subsequent reduction may be enough to burn most of Nokia's existing cash and even launched a disbelief about the survival of Nokia. If Nokia success in the Exultet speed "burning" of cash reserves, the company will not face difficulties in paying short term bonds.

However, the opportunity to leave Nokia's recovery is very difficult, although analysts predict that the amount of Nokia phones sold in the coming year is 46 million units, while the year is estimated to be 20 million units. Hope Nokia will not repeat the tragedy of the Palm.