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Nokia exceeds outlook for Devices & Services and Nokia Siemens Networks

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Nokia has released some preliminary financial figures for its performance during the fourth quarter 2012 and said that sales in its Devices & Services has exceeded expectations and achieved underlying profitability in the fourth quarter 2012.

The mobile phones business unit and Lumia portfolio delivered better than expected results and operating expenses were lower than expected.

The Devices & Services non-IFRS operating margin for the fourth quarter 2012 now expected to be between break even and positive 2 percent, compared to the previous outlook of approximately negative 6 percent, plus or minus four percentage points.

Nokia currently estimates that Devices & Services net sales in the fourth quarter 2012 were approximately EUR 3.9 billion, with total device volumes of 86.3 million units.

Mobile Phones net sales of approximately EUR 2.5 billion, with total volumes of 79.6 million units of which 9.3 million units were Asha full touch smartphones. Smart Devices net sales of approximately EUR 1.2 billion, with total volumes of 6.6 million units of which 4.4 million units were Nokia Lumia smartphones.

Total smartphone volumes of 15.9 million units composed of 9.3 million Asha full touch smartphones, 4.4 million Lumia smartphones and 2.2 million Symbian smartphones.

However, seasonality and competitive environment are expected to have a negative impact on the first quarter 2013 underlying profitability for Devices & Services, compared to the fourth quarter 2012.

Nokia also estimates that Nokia Siemens Networks has exceeded expectations for the fourth quarter 2012, delivering record underlying profits and a third consecutive quarter of underlying profitability. Seasonality is again expected to have a negative impact on the first quarter 2013 underlying profitability for Nokia Siemens Networks, compared to the fourth quarter 2012.

Commenting on the preliminary Q4 financial information, Stephen Elop, Nokia CEO, said:
"We are pleased that Q4 2012 was a solid quarter where we exceeded expectations and delivered underlying profitability in Devices & Services and record underlying profitability in Nokia Siemens Networks."

Nokia will provide more details when it reports fourth quarter and full year 2012 results on January 24, 2013.

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