Nokia Shrinks its Losses As Revenues Continue to Decline
Nokia has posted a quarterly loss as its sales dropped by nearly a quarter, although the soon to be sold off handset division actually saw a rise in revenues compared to the previous three months.
Nokia's sales for the third-quarter of the year came in at EUR5.66 billion (US$7.81 billion) -- down by 22% against a year ago. Sales at NSN fell by 7%, at its mapping division, Here down by 20% and the handset division was down by 19%.
The company did manage to post an operating profit of EUR118 million as against a loss of EUR564 million a year ago.
The company shrank its net loss to EUR104 million (US$143 million), from EUR934 million a year ago.
In the mobile devices division, the company shipped 64.6 million devices in the three months to the end of September, down by 22 percent against a year ago.
Of the total, 8.8 million were Lumia smartphones.
Sales of mobile devices were down in all markets, except in North America, where they jumped sharply, albeit from a very low base.
The largest year-on-year decline in net sales was in Middle East & Africa, followed by Asia-Pacific, Latin America, Europe and Greater China. In Middle East & Africa, Asia Pacific, Latin America, Europe and Greater China the year-on-year net sales declines were primarily due to lower sales in the Mobile Phones business unit. In North America, the year-on-year sales increase was primarily due to smartphone sales.
The year-on-year decrease of 26% in NSN net sales in the third quarter 2013 was partially due to divestments of businesses as well as the exiting of certain customer contracts and countries.
Even excluding those issues, sales would have still been down by 20 percent though.
On a regional basis, the company had lower cyclical sales in Asia Pacific following high levels of spending a year ago. In Europe, the year-on-year sales decline was primarily related to network modernization and divestments in. The year-on-year sales decline in Latin America was primarily driven by constrained operator spending and certain contract exits. Finally, the year-on-year decline in Middle East and Africa was primarily due to country exits.
In the third quarter 2013, Global Services represented 51% of NSN net sales, compared to 49% in the third quarter 2012.