Nokia has reiterated its longer-term financial targets for its Devices & Services business and Nokia Siemens Networks (NSN) infrastructure joint venture in its 2012 annual report.

The company plans for the net sales of its Devices & Services division to grow faster than the market and for non-IFRS operating margin to be 10 per cent or higher.

The target for NSN is for non-IFRS operating margin to be between five and 10 per cent.

The company recorded a EUR276 million operating profit for its Devices & Services unit in the fourth quarter of 2012 — a 36 per cent year-on-year increase — but a EUR1.1 billion operating loss for 2012 as a whole.

NSN recorded a Q4 operating profit of EUR251 million, a 275 per cent improvement compared to the same quarter a year earlier. However, the JV recorded a net loss of EUR3.11 billion for the year, compared to a EUR1.16 billion loss in 2011.

In January, Nokia proposed that it would skip payment of the 2012 dividend “to ensure strategic flexibility” after reporting a net loss for 2012 and a reduced cash pile.

However, CEO Stephen Elop said the results for the fourth quarter indicated that the company’s strategy had “started to translate into financial results”. The company reported a EUR202 million profit for the final quarter of 2012 compared to a EUR1.07 billion loss a year earlier.

There has been speculation about the future of NSN, with the CFO of partner Siemens recently suggesting that the Germany company is likely to exit the JV this year.