Nokia's Kallasvuo expresses disappointment over NSN's performance

Nokia's CEO Olli-Pekka Kallasvuo did not hold back in telling German magazine Capital that he's not happy with Nokia Siemens Networks' financial performance.

"At NSN, the business situation is not satisfactory," Kallasvuo was quoted as saying in an interview with Capital magazine.

NSN's poor performance in Q3 09 prompted Nokia to report a $1.35 billion writedown of its stake in NSN, while Siemens' writedown totaled $2.39 billion.

These comments were obviously referring to the joint venture's third quarter 09 results where it reported revenues of $4.1 billion, a 21 percent decline from Q3 08. With those results, NSN's new CEO Rajeev Suri took some corrective action by announcing it would cut 7-9 percent of its workforce to reduce costs and restructuring the company into three operational units.

Kallasvuo's comments follow a joint letter sent to NSN's customers from Nokia and Siemens that maintained their support of the joint venture.

For more:
- read the Reuters article here

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