29th Sep 2011 08:00
Nokia / Miscellaneous 29.09.2011 09:00 Dissemination of a UK Regulatory Announcement, transmitted byDGAP - a company of EquityStory AG.The issuer is solely responsible for the content of this announcement.--------------------------------------------------------------------------- Next phase of changes to improve efficiencies in manufacturing, Location &Commerce, and supporting functions Nokia CorporationStock exchange releaseSeptember 29, 2011 at 10.00 (CET+1) Espoo, Finland - Nokia today announced plans to take additional actions toalign its workforce and operations. The measures support both the execution ofthe company's strategy and the savings target the company announced earlierthis year, and also target to bring efficiencies and speed to the organization. Earlier this year, Nokia announced changes primarily focused on aligning itsR&D operations in Smart Devices and Mobile Phones. Today, the company announcedthe next phase of operational alignment, which includes plans for reductions inmanufacturing, the Location & Commerce business, and supporting functions. Nokia plans to adjust its manufacturing capacity and renew its manufacturingoperations to better serve its global network of customers, partners andsuppliers in the following manner: - Focus its feature phone manufacturing on those locations with optimalproximity to suppliers and key markets. As a result, Nokia plans to close itsmanufacturing facility in Cluj, Romania by the end of 2011, as Nokia'shigh-volume Asian factories provide greater scale and proximity benefits. - Review the long-term role of its manufacturing operations in Salo, Finland,Komarom, Hungary, and Reynosa, Mexico. These factories are expected to continueto play a key role in serving European and North American smartphone customers,but the plan is to gradually shift their focus to customer and market-specificsoftware and sales package customization. It is estimated this would have animpact on the number of personnel in 2012, with no impact in 2011. Nokia willengage in discussions with employee representatives and stakeholders in thesesites, and expects to have more visibility into the possible headcount impactsin the first quarter of 2012. Nokia previously announced its plans to create a Location & Commerce businessconsolidating location assets including NAVTEQ and Nokia's social locationservices operations. As part of consolidating this business, Nokia hasidentified potential synergies and opportunities to increase effectivenessthrough automation. Location & Commerce is responsible for driving the deliveryof the world's best digital mapping content, location platform andsocial-location experiences. Nokia plans to concentrate its Location & Commercedevelopment efforts in Berlin, Boston, Chicago and other supporting sites, andplans to close its operations in Bonn, Germany and Malvern, US. Nokia is also starting consultations with employees in Sales, Marketing andCorporate Functions, in line with Nokia's earlier announcement on April 27,2011. 'We are seeing solid progress against our strategy, and with these plannedchanges we will emerge as a more dynamic, nimble and efficient challenger,'said Stephen Elop, Nokia President and CEO. 'We must take painful, yetnecessary, steps to align our workforce and operations with our path forward.' 'Europe is core to Nokia's future. In addition to our headquarters, we have astrong R&D presence in Europe. We have four major R&D sites in Finland and twomajor R&D sites in Germany, as well as Nokia Research Centers and othersupporting R&D sites in Europe. Nokia also retains a strong local presence inour many sales offices throughout this region, as well as our operations inSalo and Komarom,' said Elop. The planned closure of the Cluj factory combined with adjustments to supplychain operations is estimated to impact approximately 2,200 employees. Theplanned changes in the Location & Commerce business are estimated to impactapproximately 1,300 employees. These personnel reductions are in addition tothe measures announced in April and are expected to take effect by the end of2012. In line with the company values, Nokia will offer employees affected by theplanned reductions a comprehensive support program. Nokia remains committed tosupporting its employees and the local communities through this difficultchange. About NokiaNokia is committed to connecting people to what matters to them by combiningadvanced mobile technology with personalized services. More than 1.3 billionpeople connect to one another with a Nokia, from our most affordablevoice-optimized mobile phones to advanced Internet-connected smartphones soldin virtually every market in the world. Through our services, people also enjoyaccess to maps and navigation on mobile, a rapidly expanding applicationsstore, a growing catalog of digital music, and more. Nokia's NAVTEQ is a leaderin comprehensive digital mapping and navigation services, and Nokia SiemensNetworks is one of the leading providers of telecommunications infrastructurehardware, software and professional services globally. FORWARD-LOOKING STATEMENTSIt should be noted that certain statements herein which are not historicalfacts are forward-looking statements, including, without limitation, thoseregarding: A) the expected plans and benefits of our strategic partnership withMicrosoft to combine complementary assets and expertise to form a global mobileecosystem and to adopt Windows Phone as our primary smartphone platform; B) thetiming and expected benefits of our new strategy, including expectedoperational and financial benefits and targets as well as changes in leadershipand operational structure; C) the timing of the deliveries of our products andservices; D) our ability to innovate, develop, execute and commercialize newtechnologies, products and services; E) expectations regarding marketdevelopments and structural changes; F) expectations and targets regarding ourindustry volumes, market share, prices, net sales and margins of products andservices; G) expectations and targets regarding our operational priorities andresults of operations; H) expectations and targets regarding collaboration andpartnering arrangements; I) the outcome of pending and threatened litigation;J) expectations regarding the successful completion of acquisitions orrestructurings on a timely basis and our ability to achieve the financial andoperational targets set in connection with any such acquisition orrestructuring; and K) statements preceded by 'believe,' 'expect,' 'anticipate,''foresee,' 'target,' 'estimate,' 'designed,' 'plans,' 'will' or similarexpressions. These statements are based on management's best assumptions andbeliefs in light of the information currently available to it. Because theyinvolve risks and uncertainties, actual results may differ materially from theresults that we currently expect. Factors that could cause these differencesinclude, but are not limited to: 1) our ability to succeed in creating acompetitive smartphone platform for high-quality differentiated winningsmartphones or in creating new sources of revenue through our partnership withMicrosoft; 2) the expected timing of the planned transition to Windows Phone asour primary smartphone platform and the introduction of mobile products basedon that platform; 3) our ability to maintain the viability of our currentSymbian smartphone platform during the transition to Windows Phone as ourprimary smartphone platform; 4) our ability to realize a return on ourinvestment in MeeGo and next generation devices, platforms and userexperiences; 5) our ability to build a competitive and profitable globalecosystem of sufficient scale, attractiveness and value to all participants andto bring winning smartphones to the market in a timely manner; 6) our abilityto produce mobile phones in a timely and cost efficient manner withdifferentiated hardware, localized services and applications; 7) our ability toincrease our speed of innovation, product development and execution to bringnew competitive smartphones and mobile phones to the market in a timely manner;8) our ability to retain, motivate, develop and recruit appropriately skilledemployees; 9) our ability to implement our strategies, particularly our newmobile product strategy; 10) the intensity of competition in the variousmarkets where we do business and our ability to maintain or improve our marketposition or respond successfully to changes in the competitive environment; 11)our ability to maintain and leverage our traditional strengths in the mobileproduct market if we are unable to retain the loyalty of our mobile operatorand distributor customers and consumers as a result of the implementation ofour new strategy or other factors; 12) our success in collaboration andpartnering arrangements with third parties, including Microsoft; 13) thesuccess, financial condition and performance of our suppliers, collaborationpartners and customers; 14) our ability to source sufficient quantities offully functional quality components, subassemblies and software on a timelybasis without interruption and on favorable terms, including the disruption ofproduction and/or deliveries from any of our suppliers as a result of adverseconditions in the geographic areas where they are located; 15) our ability tomanage efficiently our manufacturing, service creation, delivery and logisticswithout interruption; 16) our ability to ensure the timely delivery ofsufficient volumes of products that meet our and our customers' and consumers'requirements and manage our inventory and timely adapt our supply to meetchanging demands for our products; 17) any actual or even alleged defects orother quality, safety and security issues in our products; 18) any actual oralleged loss, improper disclosure or leakage of any personal or consumer datacollected or made available to us or stored in or through our products; 19) ourability to successfully manage costs, including our ability to achieve targetedcosts reductions and to effectively and timely execute related restructuringmeasures, including personnel reductions; 20) our ability to effectively andsmoothly implement the new operational structure for our businesses; 21) thedevelopment of the mobile and fixed communications industry and generaleconomic conditions globally and regionally; 22) exchange rate fluctuations,including, in particular, fluctuations between the euro, which is our reportingcurrency, and the US dollar, the Japanese yen and the Chinese yuan, as well ascertain other currencies; 23) our ability to protect the technologies, which weor others develop or that we license, from claims that we have infringed thirdparties' intellectual property rights, as well as our unrestricted use oncommercially acceptable terms of certain technologies in our products andservices; 24) our ability to protect numerous Nokia, NAVTEQ and Nokia SiemensNetworks patented, standardized or proprietary technologies from third-partyinfringement or actions to invalidate the intellectual property rights of thesetechnologies; 25) the impact of changes in government policies, trade policies,laws or regulations and economic or political turmoil in countries where ourassets are located and we do business; 26) any disruption to informationtechnology systems and networks that our operations rely on; 27) unfavorableoutcome of litigations; 28) allegations of possible health risks fromelectromagnetic fields generated by base stations and mobile products andlawsuits related to them, regardless of merit; 29) our ability to achievetargeted costs reductions and increase profitability in Nokia Siemens Networksand to effectively and timely execute related restructuring measures; 30) NokiaSiemens Networks' ability to maintain or improve its market position or respondsuccessfully to changes in the competitive environment; 31) Nokia SiemensNetworks' liquidity and its ability to meet its working capital requirements;32) whether Nokia Siemens Networks is able to successfully integrate theacquired assets of Motorola Solutions' networks business, retain existingcustomers of the acquired business, cross-sell Nokia Siemens Networks' productsand services to customers of the acquired business and otherwise realize theexpected synergies and benefits of the acquisition; 33) Nokia Siemens Networks'ability to timely introduce new products, services, upgrades and technologies;34) Nokia Siemens Networks' success in the telecommunications infrastructureservices market and Nokia Siemens Networks' ability to effectively andprofitably adapt its business and operations in a timely manner to theincreasingly diverse service needs of its customers; 35) developments underlarge, multi-year contracts or in relation to major customers in the networksinfrastructure and related services business; 36) the management of ourcustomer financing exposure, particularly in the networks infrastructure andrelated services business; 37) whether ongoing or any additional governmentalinvestigations into alleged violations of law by some former employees ofSiemens AG may involve and affect the carrier-related assets and employeestransferred by Siemens AG to Nokia Siemens Networks; 38) any impairment ofNokia Siemens Networks customer relationships resulting from ongoing or anyadditional governmental investigations involving the Siemens carrier-relatedoperations transferred to Nokia Siemens Networks; as well as the risk factorsspecified on pages 12-39 of Nokia's annual report Form 20-F for the year endedDecember 31, 2010 under Item 3D. 'Risk Factors.' Other unknown or unpredictablefactors or underlying assumptions subsequently proving to be incorrect couldcause actual results to differ materially from those in the forward-lookingstatements. Nokia does not undertake any obligation to publicly update orrevise forward-looking statements, whether as a result of new information,future events or otherwise, except to the extent legally required. Media Enquiries: NokiaCommunicationsTel. +358 7180 34900Email: [email protected] www.nokia.comNews Source: NASDAQ OMX 29.09.2011 DGAP's Distribution Services include Regulatory Announcements,Financial/Corporate News and Press Releases.Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: EnglishCompany: Nokia FinlandPhone: Fax: E-mail: Internet: ISIN: FI0009000681Category Code: MSCLSE Ticker: 0HAFSequence Number: 910Time of Receipt: Sep 29, 2011 09:00:05 End of Announcement DGAP News-Service ---------------------------------------------------------------------------UK-Regulatory-announcement transmitted by DGAP - a company of EquityStory AG.The issuer is solely responsible for the content of this announcement.
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