December 16, 2009 / 12:31 PM / 10 years ago

Nokia CEO says NSN performance not enough: report

FRANKFURT (Reuters) - Nokia Siemens Networks’ NOKI.UL performance is insufficient, the chief executive of Nokia NOK1V.HE, partnered with Siemens (SIEGn.DE) in the telecom gear maker, has told a German magazine.

“At NSN, the business situation is not satisfactory,” Olli-Pekka Kallasvuo was quoted as saying in an interview with Capital magazine, parts of which were sent via email ahead of its publication on Thursday.

Nokia spokeswoman said the comment on performance was referring to the third quarter.

Nokia, the world’s biggest handset maker, is still committed to the joint venture.

Less than a week ago Nokia and Siemens affirmed their support for NSN in a joint letter to clients, saying that they “continue to support investment in the future of the company.

Nokia had to book a third-quarter charge of 908 million euros ($1.32 billion) for NSN, while Siemens had to take a 1.6 billion euros writedown in the fourth quarter.

Siemens declined to comment. However, Siemens Chief Financial Officer Joe Kaeser said earlier this month there had been “disappointment” since the partners founded NSN in 2007.

Reporting by Christoph Steitz and Marilyn Gerlach; editing by Karen Foster

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