Nokia Makes a Profit For the First Time In Six Quarters

Check out the new meme template I generated: http://memecrunch.com/meme/EEVH/thanks-stephen

Check out the new meme template I generated: http://memecrunch.com/meme/EEVH/thanks-stephen

Nokia announced their full Q4 earnings report three days ago. You can find some info about their preliminary report on the last issue of my ‘News Catch Up‘. Their full earnings report will also feature on the up and coming ‘News Catch Up’, which is still in the works but will be reporting on nearly two weeks of Nokia and tech related news. Go ahead and click ‘read more’ to get the full scoop on the momentous news.

Nokia announced an operating profit of €439 million (up from -€954 million in Q4 2011), with net sales of €8.041 billion (down 20% YoY). Nokia’s Devices and Services division generated an operating profit of €276 million. The margin in Devices and Services was 7.2% (up from from 3.4% in Q4 2011).

In short, here’s some more of the key things you need to know: Nokia exceeded their previous outlook, sold 4.4m Lumia’s, 9.3m Asha Touch devices, and 86.3m phones in total. If you include Asha Touch devices as smartphones, they sold 15.9 million smartphones in Q4 (up from 6.3m in Q3 and the best all year). The Devices & Services segment of the company, and more impressively Nokia itself, achieved underlying profitability (after 6 consecutive losses by quarter). Nokia Siemens Networks had a record quarter for profitability. Shares rose by as much as 19% on the NYSE.

Dividend for investors will be cut for 2012. ‘To ensure strategic flexibility, the Nokia Board of Directors will propose that no dividend payment will be made for 2012 (EUR 0.20 per share for 2011). Nokia’s fourth quarter 2012 financial performance combined with this dividend proposal further solidifies the company’s strong liquidity position.’

 

Stephen Elop naturally had quite a bit to say:

“We are very encouraged that our team’s execution against our business strategy has started to translate into financial results. Most notably we are pleased that Nokia Group reached underlying operating profitability in the fourth quarter and for the full year 2012.

While the first half of 2012 was difficult for Nokia Group, in Q4 2012 we strengthened our financial position, improved our underlying operating margin in Devices & Services, introduced the HERE brand to expand our mapping and location experiences, and drove record profitability in Nokia Siemens Networks.

We remain focused on moving through our transition, which includes continuing to improve our product competitiveness, accelerate the way we operate and manage our costs effectively. All of these efforts are aimed at improving our financial performance and delivering more value to our shareholders.”

 

Good news for Nokia and its fanatics such as myself. It looks like Stephen Elop and the leadership team have managed to finally bring the company to a more stable position. Websites around the internet are talking about a comeback and I do hope that it is a strong possibility. If you think about it Nokia had a good quarter, with the sale of Vertu, sale of its headquarters, new licensing fees from RIM, continued payment from Microsoft, and other factors adding to its chance of stabilising.  Q1 of 2013 is where things are going to count. Nokia is going to have to prove that the stemmed losses don’t start popping up again, and that they can really get those smartphone sales up.

This year MWC looks like it is going to be a Nokia dominated event. With new devices being announced, lets hope the market stays excited for the company’s prospects, and that those new products will generate sales with a healthy margin in the quarters to come.

For more easy to digest information you can head over to AAWP for a good news breakdown. If you can stomach it then click below to go to the full press release.

Press Release

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: