Tuesday, June 06, 2006

Analysts believe in Kallasvuo's ability to lead Nokia

Helsingin Sanomat writes that "analysts familiar with Nokia (NOK) "are confident that Olli-Pekka Kallasvuo, the company's new President and CEO, has what it takes for the job. He has been in key positions in the company during all of the 14 years that his predecessor Jorma Ollila has led the giant firm, and has helped create Nokia's success. He has twice held the post of Chief Financial Officer. He has also headed Nokia's business operations in the United States, and in 2004-2005 he was the head of the company's mobile phones unit"

Ilkka Rauvola at investment bank Evli said, "Kallasvuo has been in a key position in the reorganisation and takeoff which has taken place in the mobile telephone business since 2004. There are many different ways to manage companies around the world. At Nokia, the management has succeeded in establishing strength, which means that the company will always be able to succeed, again and again."

Erik Sucksdorff at FIM added, "As a former CFO, he is well placed to see to it that Nokia can take advantage of economies of scale and to compete with good profit margins in the market for lower-priced mobile telephones."

Karri Rinta at Nordea Bank commented, "I feel that it is very good that Ollila has said that he will continue to put much time into the affairs of Nokia. He is an important sparring partner, which is something that Kallasvuo needs. In the building of a brand, personal charisma means little; 98 percent of the drinkers of Coca Cola do not know who is the head of the company. It is more important in relations with investors, but Nokia's CFO Rick Simonson has taken on much responsibility for dealing with relations with investors, and he is also a brilliant performer."

Richard Windsor at Nomura Bank chimed in and said, "Certainly, there is some importance in performing skills. Kallasvuo has appeared somewhat distant in this respect, but it could well be that as CEO, this will all change. The company has challenges that it faces within three to five years, and I have not had much information on what kind of an approach will be taken on them."