Thursday, January 10, 2013

Nokia Tops Q4 Estimates and NSN Hits Record Q4 Profits

Nokia reported good news:  sales of Devices & Services exceeded expectations and achieved underlying profitability in the fourth quarter 2012.  Specifically, its Mobile Phones business unit and Lumia portfolio delivered better than expected results; and operating expenses were lower than expected.  Devices & Services non-IFRS operating margin for the fourth quarter 2012 now expected to be between break even and positive 2 percent.

In addition, Nokia Siemens Networks exceeded expectations for the fourth quarter 2012, delivering record underlying profits and a third consecutive quarter of underlying profitability.  The company cited strong performance in higher margin product categories and geographic regions, along with better than expected cost management.  NSN's non-IFRS operating margin for the fourth quarter 2012 is now expected to be between 13 and 15 percent.

"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. We focused on our priorities and as a result we sold a total of 14 million Asha smartphones and Lumia smartphones while managing our costs efficiently, and Nokia Siemens Networks delivered yet another very good quarter."

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