Finnish electronics firm's bold strategy may be unraveling since 2 acquisitions

Article Abstract:

Nokia Oy AB's plan to enter the electronics industry by acquiring struggling firms in such markets as high-definition television and digital cellular telephones seems to have backfired, resulting in a 23 percent reduction in profit and a 26 percent decline in stock prices. Nokia's acquisition of the data division of LM Ericsson Telefon AB and Standard Elektrik Lorenz AG, has forced complete reorganization of the Finnish company's computer division. Before the acquisitions, Nokia was already one of the world's largest manufacturer of cellular telephones. Nokia's problems have been further complicated by the death of the two executives who planned the company's acquisition and diversification strategy. CEO Kari Kairamo and VP Timo Koski both died within a year of the major acquisitions. Present management is optimistic that the restructured company can turn itself around.

ELECTRONIC & OTHER ELECTRIC EQUIPMENT, Economic aspects, Mergers, acquisitions and divestments, Acquisitions and mergers, Electronics industry, Death, LM Ericsson Telefon AB, Nokia Osakeyhtiot AB, Electronic Industry, Executive, Acquisition, Kairamo, Kari, Koski, Timo, Standard Elektrik Lorenz AG

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Markham to head Aventis pharmaceuticals unit

Article Abstract:

Richard Markham is no stranger to the challenges of difficult marriages in the pharmaceutical industry. His next challenge comes when Germany's Hoechst AG and France's Rhone-Poulenc SA merge units to form a new company called Aventis SA. One of the challenges will be the meeting of the minds of French, German and an American CEO. Assuming all regulatory agencies give the go-ahead, the company could begin operating in early-1999. Projected cost savings are $1.2 billion per year within three years although job cuts in France will not be excessive due to an agreement with unions there.

Germany, France, Pharmaceutical Preparation Manufacturing, Pharmaceutical preparations, Executive changes & profiles, Organizational nomenclature, Officials and employees, Drugs, Appointments, resignations and dismissals, Abstract, Markham, Richard, Aventis SA

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Ericsson shares plunge on news of surprise loss; telecommunications firm says it plans to double worker layoffs to 4,000

Article Abstract:

Telefon AB LM Ericsson's stock fell 10 percent on news of a pretax loss for 3rd qtr 1991 and lowered forecasts for the year. The loss is 268 million kronor, which compares with a pretax profit of 844 million kronor in the same period last year. Ericsson will lay off approximately 4,000 employees by the end of 1991. The company expects a profit in 4th qtr 1991, but pretax profit for the year will probably be down. Ericsson plans a joint venture with Ascom Holding AG, a Swiss company, to develop and market transmission equipment.

Telephone and telegraph apparatus, Finance, Telecommunications services industry, Telecommunications industry, Joint ventures, Sweden, Profits, Business planning, Telefonaktiebolaget LM Ericsson, Layoffs, Layoff, Telecommunications, Joint Venture, Third Quarter, Profit, Stock, Losses, Ascom Holding Ltd.

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