Morning Beat: Nokia Corp (ADR) (NOK), Microsoft Corporation (MSFT), and General Electric Company (GE)
Nokia Corp (ADR) (NYSE:NOK) delivered a first-quarter net loss of €513 million compared to a profit of €177 million posted last year same quarter. The Finish Company has attributed the net loss to sluggish mobile network sales and the Alcatel-Lucent transaction.
The network business recorded an 8% decline in sales compared to the same quarter last year. Customers are reportedly holding back on orders for new equipment, significantly hurting the company’s sales. Revenue for the three months came in at €5.6 billion up from €3.2 billion, but still short of analyst’s estimates of €5.73 billion.
Amidst the slow growth in network business sales, Nokia Corp (ADR) (NYSE:NOK) says the integration of Alcatel-Lucent is going well with the unit having posted impressive sales. The company has since said it plans to reduce its operational costs by over €900 million by 2018.
Microsoft Corporation (NASDAQ:MSFT) is in the process of shutting down its China web portal MSN China as it moves to focus on selling other services. Starting June 7, the portal will go offline as the software giant moves to selling Windows 10 and cloud services among other products and services.
Microsoft Corporation (NASDAQ:MSFT) also plans to direct its attention to its main R&D center that is based in Beijing. The center is currently working on a special version of Windows 10 dedicated to Chinese government agencies. The cloud market also presents exciting opportunity for growth as it is poised to grow to $3.8 billion by 2020 in China.
General Electric Company (NYSE:GE) has reached an agreement for the acquisition of Doosan Engineering and Construction’s power unit. The $250 million deal will give the conglomerate access to the South Korean’s company unit that produces components of combined-cycle power plants.
The unit should help General Electric Company (NYSE:GE)’s bolster its capacity in the manufacturing of heat recovery steam generators used to boost efficiency in commercial plants. Last year, it generated $200 million in revenue against $29 billion by the conglomerate’s power unit. The deal should close in the second quarter upon regulatory approval and Doosan shareholders’ approval.
Baidu Inc (ADR) (NASDAQ:BIDU)’s top hierarchy is urging the company’s staff to pay more attention to values rather than profits. The remarks by Robin Li come in the wake of the search giant being drawn into a scandal involving the death of a student who succumbed to injuries on undergoing a treatment posted on the company’s site.
Baidu Inc (ADR) (NASDAQ:BIDU) remains the subject of criticism as the country’s online community continues to react to a cancer therapy the student underwent, posted on the site. The treatment appeared on top of search results further affirming its ‘credibility’.
Li has warned that staff failing to adhere to strict values could see the company go bankrupt in under 30 days. Baidu currently controls about 70% of China’s search traffic.
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