S&P to Nokia: Whatcha Gonna Do With All That Junk, All That Junk Inside Your Trunk?
“We now expect Nokia to report significantly lower margins and cash flows in 2012 than we had previously expected,” S&P said. “The outlook is negative, reflecting the possibility of a further downgrade if Nokia fails to stabilize revenues and margins and significantly cut its cash losses.”
Evidently Nokia’s ugly first-quarter loss and 30 percent drop in sales didn’t do much to reassure S&P that the company’s turnaround is a sure thing — even with its relatively well-received new smartphone, the Lumia.
“We still expect revenue from Lumia smartphones to grow over time but not sufficiently to offset a rapid decline in revenue from Symbian-based smartphones over the next few quarters,” S&P analysts said.
Another voice to add to what’s fast becoming a Greek chorus of Nokia doomsayers. The company has been slapped with three nasty credit downgrades in a row.
Earlier in the week, Fitch downgraded Nokia’s long-term credit rating to junk status; last week, Moody’s did the same thing, citing concerns about Nokia’s low-end phone business.