InfoAnda - Worries mount as Nokia burns through cash |

Pakistanis angry over detentions in Times Sq. case
Monday, May 24, 2010
ISLAMABAD – Relatives of three men detained by Pakistan for alleged links to the suspect in the attempted Times Square bombing say the men are innocent.
They

Taiwan denies boycotting Australian film festival
Thursday, August 6, 2009

AFP - Thursday, August 6TAIPEI (AFP) - - Taiwan's Beijing-friendly government on Wednesday denied boycotting an Australian film festival amid a row over the e

Merkel's support dips, regional ally resigns International
Thursday, September 3, 2009

By Sarah Marsh and Noah Barkin

BERLIN (Reuters) - Chancellor Angela Merkel suffered a double blow on Thursday as a senior party ally in east German

Minister seeks closure of anti-Berlusconi websites
Wednesday, December 16, 2009
ROME (AFP) - – The Italian government moved Tuesday to close down Internet sites encouraging further violence against Prime Minister Silvio Berlusconi, who

Asian markets mixed after Wall Street rally
Wednesday, March 18, 2009

By ELAINE KURTENBACH,AP Business Writer AP - Wednesday, March 18SHANGHAI - Asia's stock market rally seemed to be running out of steam Wednesday, despite an

Sands blames Beijing and Macau for halt on casino project: report | 18 November 2008
Three-way tie for lead at Vietnam golf Masters | 6 December 2008
Three nods for Lady Gaga as women lead way at Brits | 17 February 2010

Total Recall: Schwarzenegger opens Austria museum | | 7 October 2011

Forum Views () Forum Replies ()

Read more with google mobile : Worries mount as Nokia burns through cash |

Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Home Business Business Home Economy Technology Media Small Business Legal Deals Earnings Social Pulse Business Video The Freeland File Markets Markets Home U.S. Markets European Markets Asian Markets Global Market Data Indices M&A Stocks Bonds Currencies Commodities Futures Funds peHUB World World Home U.S. Brazil China Euro Zone Japan Mexico Russia India Insight World Video Reuters Investigates Decoder Politics Politics Home Election 2012 Issues 2012 Candidates 2012 Tales from the Trail Political Punchlines Supreme Court Politics Video Tech Technology Home MediaFile Science Tech Video Tech Tonic Social Pulse Opinion Opinion Home Chrystia Freeland John Lloyd Felix Salmon Jack Shafer David Rohde Bernd Debusmann Nader Mousavizadeh Lucy P. Marcus David Cay Johnston Bethany McLean Edward Hadas Hugo Dixon Ian Bremmer Lawrence Summers Susan Glasser The Great Debate Steven Brill Jack & Suzy Welch Frederick Kempe Christopher Papagianis Breakingviews Equities Credit Private Equity M&A Macro & Markets Politics Breakingviews Video Money Money Home Tax Break Lipper Awards 2012 Global Investing MuniLand Unstructured Finance Linda Stern Mark Miller John Wasik James Saft Analyst Research Alerts Watchlist Portfolio Stock Screener Fund Screener Personal Finance Video Money Clip Investing 201 Life Health Sports Arts Faithworld Business Traveler Entertainment Oddly Enough Lifestyle Video Pictures Pictures Home Reuters Photographers Full Focus Video Reuters TV Reuters News Article Comments (8) Facebook Who got Facebook IPO shares? Fairness may not come into it NEW YORK - A lot of loyal Facebook fans and occasional investors are discovering a hard truth this week: Money and connections talk, especially when it comes to a hot deal handled by Wall Street. Full Article Video: Facebook priced to pop Facebook share flippers risk missing future IPOs Shorting Facebook on first day: Tough even for the gutsiest Interactive: How Facebook stakeholders make money Track Facebook's share price Follow Reuters Facebook Twitter RSS YouTube Read Iran attack decision nears, Israeli elite locks down 17 May 2012 South Carolina woman battles flesh-eating bacterial disease 17 May 2012 Facebook fizzles in debut, shares skirt IPO price 12:03pm EDT Shorting Facebook on first day: Tough even for the gutsiest | 11:39am EDT Insight: Who got Facebook IPO shares? Fairness may not come into it 12:33am EDT Discussed 158 Germany’s Merkel dealt heavy blow in state vote 135 Iran attack decision nears, Israeli elite locks down 115 Weary warriors favor Obama Watched A look at the UK’s most beautiful face Thu, May 10 2012 Surfer rides 78-foot wave to world record Fri, May 11 2012 Violence rages on in Syria Thu, May 17 2012 Wealth and Investing Center Pictures Reuters Photojournalism Our day's top images, in-depth photo essays and offbeat slices of life. See the best of Reuters photography. See more | Photo caption Transgendered beauty Transgendered contestant Jenna Talackova takes part in Miss Universe Canada. Slideshow Strange and unusual Our photographers sometimes capture moments that are strange and offbeat. Here's a recent sampling. Slideshow Worries mount as Nokia burns through cash Tweet Share this Email Print Related News Chesapeake hikes loan as credit rating fades Tue, May 15 2012 Nokia defends strategy to exasperated investors Thu, May 3 2012 Nokia files patent lawsuits against HTC, RIM Wed, May 2 2012 It's not a BlackBerry World anymore Mon, Apr 30 2012 UPDATE 6-Galaxy phones power Samsung to record $5.2 bln profit Fri, Apr 27 2012 Analysis & Opinion Samsung investors should worry less about Apple Global sell-off could echo summer of 2011 Related Topics Tech » Money » Media » File photo of a Nokia smartphone with currency graph on display is seen in Zenica. Credit: Reuters/Dado Ruvic/Files By Josie Cox and Tarmo Virki Fri May 18, 2012 9:06am EDT LONDON/HELSINKI, May 18 (IFR/Reuters) - Nokia Oyj is tearing through its cash reserves at an unsustainable rate, raising what some analysts say are serious questions about the struggling Finnish phone maker's ability to stabilize its finances in the months ahead. With the cost of Nokia's debt rising, the most bearish of analysts in a Reuters poll said the company could even be at risk of default if it fails to slow the burning of its cash. Over the past five quarters, the onetime darling of mobile telecoms has eroded its cash pile by 2.1 billion euros ($2.7 billion) - a rate that would wipe out its entire 4.9 billion euros reserves in a couple years. Analysts on average expect the company will burn through almost 2 billion euros more in just three quarters, while the most bearish see the company wiping out its 4.9 billion euros net cash buffer completely next year, a Reuters poll of 30 banks and brokerages showed on Friday. "In our opinion, the company's ability to repay even its shorter-term 2014 bond could be an issue," said Societe General credit analyst Juliano Torii. The company, which had more than 10 billion euros in cash on hand in 2007, has two bond issues outstanding, 1.25 billion euros of 5.5 percent bonds maturing in 2014 and 500 million of 6.75 percent notes due in 2019. The bonds - both junk-rated by Fitch and Standard & Poor's - are trading at record wides versus mid-swaps (a money market benchmark), at around 400 basis points and 683 bp respectively. And those levels may still not be wide enough, some say. "Nokia's spreads do not reflect the severity of the company's situation," said Torii. It's also getting more expensive to insure against default. Five-year credit default swaps (CDS) were at 749 bp on Friday - an all-time high, according to Markit. Since its year-low of 309 in late January, it has therefore increased some 142 percent. According to according to Gavan Nolan, director of credit research at Markit, this implies a default probability of 49 percent over the next five years. A Nokia spokesman said improving cash flow was an important goal. "Nokia is implementing a decisive action plan to position our company for future growth and success," spokesman James Etheridge said. "The main focus of these actions is on lowering the company's costs, improving cash flow and maintaining a strong financial position." NO LIGHT FROM LUMIA Nokia, which once ruled the mobile phone roost, was wrongfooted by the rise of smartphones. And while it may have hoped the iPhone phenomenon was close to running its course, Apple Inc last month said quarterly profit had almost doubled in the first quarter of 2012, quieting talk that its days of sharp growth were over. Meanwhile Nokia's response to the iPhone, the Lumia, has not so far demonstrated it can compete. "Nokia's Lumia was an attempt to catch up, but it was simply too little too late," said Nancy Utterback, credit strategist at Aviva Investors. "I would not rule out the possibility of Nokia being downgraded further," Utterback said. "The company is in a negative spiral that will be hard to reverse." Societe Generale analysts this week downgraded Nokia stock - which was down 1.2 percent early on Friday, having slumped to its lowest in about 16 years - to a to "sell" and warned that the company's operating losses and restructuring costs could accelerate a decline in sales. "Such an additional fall could be enough to burn through most of Nokia's existing cash pile and even bring into question Nokia's very survival," SocGen analyst Andy Perkins said in a note. Not everyone is quite so pessimistic. While the most bearish analysts doubt Nokia's ability to retain a cash buffer, the average estimate in the Reuters poll was for the company to end 2012 with 2.8 billion euros in net cash. If it can succeed in reducing the speed of its cash burn, it would be unlikely to face major hurdles in paying off its shorter-dated bond. "The group appears to have sufficient liquidity, even under some reasonably onerous operating assumptions," said Jens Vanbrabant, lead portfolio manager at European Credit Management. And there is some optimism as Nokia gears up production of new smartphones using Microsoft Corp's Windows Phone software. Analysts on average expect Nokia to sell 46 million of the phones next year, compared with 20 million expected this year. But the rapid reversal in the company's fortunes has given Nokia a steep hill to climb. "There are chances for Nokia to shape up and recover, but it's going to be tough," one corporate banker said. "The TMT market is fast moving, and even one slip-up can cost a company its whole future." If Nokia fails to improve its fortunes, some bankers say Microsoft could become a white knight. After all, not only is Lumia's software based on that of Microsoft, it also happens to be Nokia Chief Executive Stephen Elop's former employer. Microsoft is already paying Nokia $1 billion a year to use its software on Lumia smartphones. And some investment bankers familiar with the technology sector said the support could extend well beyond that amount, if Nokia's problems intensify. ($1 = 0.7869 euros) (Editing by David Holmes) Tech Money Media Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (8) VladNistor wrote: Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Connect with Reuters Twitter Facebook LinkedIn RSS Podcast Newsletters Mobile About Privacy Policy Terms of Use AdChoices Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

Other News on Friday, 18 May 2012
Islamists Protest Lady Gaga's Concert in Indonesia
Russia says action on Syria, Iran may go nuclear |
Qaeda chief urges Saudis to topple ruling family |
Russian police detain protest leader, five others |
US to suspend Myanmar sanctions, but keep laws on books |
Iran threatens to sue Google over dropping Persian Gulf |
West African troops start arriving in Guinea-Bissau |
Facebook prices at top of range in landmark IPO |
Iran threatens to sue Google over dropping Persian Gulf |
Apple to use only green power for main data center |
HP mulls cutting at least 25,000 jobs: sources |
Insight: Who got Facebook shares? Fairness may not come into it |
Apple to use only green power for main data center |
AT&T eyes lower subsidies, shared data plans |
Facebook's Saverin fires back at tax-dodge critics |
Disco queen Donna Summer dies at 63 |
And the winner is? The sitcom, as networks add new shows |
Peter Berg discusses bringing Battleship to film |
Contestants? It's TV talent judges basking in fame, cash |
Second Travolta accuser drops suit, hires celebrity attorney |
Adele notches up two Ivor Novello songwriting awards |
Cannes festival opens with quirky comedy and a camel |
Japan Successfully Broadcasts an 8K Signal Over the Air
G8 leaders look to head off euro zone crisis |
China bars blind dissident's family choice of lawyers |
Poll shows Greece electing pro-bailout government |
Former editor says Murdoch sowed seeds of hacking scandal |
Retired officials urge China's ruling party to come clean |
Syria's Assad: Nations that sow chaos will suffer |
Slovenian austerity drive threatened by referendum call |
Resource-rich Mongolia plays populist card in run-up to polls |
Investors brace for Facebook debut on Wall Street |
Verizon data fans to pay more in service or phones |
ZTE confirms security hole in U.S. phone |
GM ad move followed failed Facebook pitch: sources |
Samsung gets 9 million preorders for new Galaxy phone: report |
EA must defend NCAA conspiracy lawsuit |
Insight: Who got Facebook IPO shares? Fairness may not come into it |
Toshiba plans to double operating profit by 2014-15 |
Sorkin says Jobs movie won't be straight biography |
Jessica Sanchez, Phillip Phillips make Idol final |
Broadway play's echoes of Bo scandal may prevent China staging |
And the winner is? The sitcom, TV networks hope |
Avengers may sink Battleship's U.S. launch |
Van Halen postpone more than 30 concert dates |
Iran may seek tactical gain with U.N. nuclear deal |
Growing military buildup, spying in China: Pentagon |
Police detain 400 Blockupy activists in Frankfurt |
Exclusive: Drugmakers weigh emergency supply plan for Greece |
Banks' rising bad loans add to Spanish troubles |
Spat with Iraq bares Turk plunge into regional power game |
U.S. firms eye Myanmar as sanctions suspended |
Facebook fizzles in debut, shares skirt IPO price |
Worries mount as Nokia burns through cash |
Verizon data fans to pay more in service or phones |
Ex-Yahoo CEO Thompson leaves F5 Networks' board |
Joke on Europe as Madagascar sequel comes to Cannes |
Reality TV, celebrity obsession hit Cannes screens |
Exploitation, loneliness in sex tourism film at Cannes |
Sorkin says Jobs movie won't be straight biography |
Greece at new risk of being pushed off euro
Bodies of missing Tenn. mom, Jo Ann Bain, and daughter found
Female Breasts Are Bigger Than Ever
AMD Trinity Accelerated Processing Units Now in Volume Production
The Avengers (2012 film), made the second biggest opening- and single-day gross of all-time
AMD to Start Production of piledriver
Ivy Bridge Quad-Core, Four-Thread Desktop CPUs
Islamists Protest Lady Gaga's Concert in Indonesia
Japan Successfully Broadcasts an 8K Signal Over the Air
ECB boosts loans to 1 trillion Euro to stop credit crunch
Egypt : Mohammed Morsi won with 52 percent
What do you call 100,000 Frenchmen with their hands up
AMD Launches AMD Embedded R-Series APU Platform
Fed Should not Ignore Emerging Market Crisis
Fed casts shadow over India, emerging markets
Why are Chinese tourists so rude? A few insights

USD EUR - 1 year graph		BlogMeter 1.01