Nokia cuts dividend, reports Q4 profit

Nokia cuts dividend, reports Q4 profit

24 JAN 2013

Nokia detailed its results for the fourth quarter of 2012, which Stephen Elop, its CEO, said indicate its strategy has “started to translate into financial results”. However, the company is also proposing to skip payment of a dividend for 2012, “to ensure strategic flexibility”.

While its Q4 numbers show some signs of recovery, it saw a net loss for the full year, and its cash pile has shrunk year-on-year.

“We remain focused on moving through our transition, which includes continuing to improve our product competitiveness, accelerate the way we operate and manage our cost effectively,” Elop noted.

The company’s guidance for the current quarter was muted, due to the continued competitive environment in the mobile device market, seasonal weakness, and macroeconomic conditions.

For the quarter, the company reported a profit attributable to shareholders of EUR202 million, compared with a prior-year loss of EUR1.07 billion, on revenue of EUR8.04 billion, down 20 percent from EUR10 billion.

In its core Devices & Services unit, the company saw an operating profit of EUR276 million, up 36 percent year-on-year, on revenue of EUR3.85 billion, down 36 percent from EUR6 billion.

Its mobile device volume of 86.3 million units was down 24 percent year-on-year from 113.5 million, due to drop-offs in both its smartphone shipments (6.6 million units, down 66 percent) and its mass market terminals (79.6 million, down 15 percent).

At Nokia Siemens Networks, there was a Q4 operating profit of EUR251 million, up 275 percent year-on-year from EUR67 million, on revenue of EUR3.99 billion, up 5 percent from EUR3.82 billion.

For the full year, it saw a net loss of EUR3.11 billion, compared to a prior-year loss of EUR1.16 billion, on sales of EUR30.18 billion, down from EUR38.66 billion.

Devices & Services saw a full year operating loss of EUR1.1 billion, compared with a prior-year profit of EUR884 million, on net sales which fell 34 percent to EUR15.69 billion from EUR23.94 billion.

Mobile device volume for the full year was 335.6 million, down 20 percent from 417.1 million, with a drop-off of 55 percent in smartphone shipments (to 35.1 million) and a 12 percent drop in mass-market terminals (to 300.5 million).

NSN saw a full year operating loss of EUR799 million, compared with an EUR300 million loss in the prior year, on sales of EUR13.78 billion, down 2 percent from EUR14.04 billion.

Nokia’s net cash position improved by EUR800 million sequentially, of which EUR650 million was generated by NSN.


Steve Costello

Steve works across all of Mobile World Live’s channels and played a lead role in the launch and ongoing success of our apps and devices services. He has been a journalist...More

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