network equipment manufacturer nokia’s share price plummeted today to a drastic fall in immediately the Helsinki stock exchange is opening. Nine o’clock in the morning the exchange rate was about 20 per cent negative.
the stock exchange trade at the end of the evening share had a value of 3.62 euros. To calculate the average week, came more than 23%.
a Quick stock market dip in the background you can see the nokia’s government’s decision that the fiscal year 2018 dividends the third and fourth quarterly installment to be paid. After the announcement the stock price plummeted.
from Nokia bulletin (switch to another service)according to the payment of dividends was suspended, in order to guarantee nokia’s ability to add 5G of investment, continue to invest in growing the company’s business and software strategy for the priority areas and to strengthen nokia’s cash position.
the Nokia according to the decision on the dividend suspension is in line with the company’s dividend practice with. According to the dividend decision is made considering nokia’s cash position and expected cash flow.
Nokia started to distribute dividends on a quarterly basis for the fiscal year 2018.
the Result remained almost the same as last season
the Stock despite the decline in nokia’s earnings remained in July–September at roughly last year’s level. Adjusted operating profit was 478 million euros, whereas in the corresponding period last year amounted to 487 million euros.
in July–September the result can be considered reasonably good considering that Nokia was in the previous interim report was anticipated by the third quarter to be “weak”.
Revenue rose four per cent year-on-year and was 5.69 billion.
cash funds, however, shrank further in July-September. Net cash and short-term investments were now 344 million, while those in the previous quarter were eur 502 million. Cash funds have decreased strongly from a year ago, when the funds amounted to almost eur 1.9 billion.
president and Ceo Rajeev Suri characterizes nokia’s third quarter was stable.
– a Number of our business are performing well, and we expect a strong fourth quarter, with operating profit margin is strong, Sorrow said in the announcement (switch to another service).
the Grief, however, warn that some of Nokia earlier reported about the 5G initial phase related risks is now becoming a reality. According to him, nokia’s profitability was affected in the third quarter, including Nokia 5G-products associated high level of costs, the profitability of the challenges in China as well as the price pressures in the first 5G agreements.
estimate of next year earnings is reduced to
the Interim financial disclosure alongside the Nokia decreased its forecast for full-year operating profit. The company expects to make this year operating profit of around 8.5% of revenue, while the previous estimate was 9 to 12 percent.
Also estimate next year profitability of the filing was down. Nokia now expects to make next year’s operating profit of approximately 9.5% of net sales. The previous estimate was 12 to 16 per cent.
see also:
nokia’s second quarter result improved clearly from last year – “profitability grew very nicely”
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