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Nokia CEO under fire as profits slip again

Alex Scroxton

The CEO of Finland-based mobility giant Nokia, Olli-Pekka Kallasvuo, has called for an end to speculation on his future at the firm, which has reached fever pitch after it posted another lacklustre set of results.

Kallasvuo is under increasing pressure as Nokia has failed to keep up with rivals such as Apple and HTC in terms of smartphone development, as previously reported, and according to the Wall Street Journal there is now a price on his head.

Unfortunately for Kallasvuo, the market appears to want him gone, as shares bounced upwards earlier this week when talk over his future went mainstream.

In a statement, Kallasvuo said that the imminent release of its first Symbian^3 device, the Nokia N8 would give the platform "broader appeal and reach" and "kick-start Nokia's fightback", but the delayed launch may not be enough to keep the wolves from his door.

Reported group net sales for the second quarter ended 30 June rose just 1% to €10bn(£8.34bn), while group operating profit slid 31% to €295m,

By unit Devices & Services revenues were 3% to €6.8bn, although operating profit was down 16% to €643m, while NAVTEQ - its GPS unit - grew sales 71% to €252m but posted an operating loss of €81m.

Meanwhile, Nokia Siemens Networks, Nokia's troubled networking JV with German electronics and IT giant Siemens, saw sales decline 5% to €3bn and posted an operating loss of €179m.


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