Nokia posts $1.21 bn loss for Jan-Mar quarter
Helsinki/New Delhi: Struggling handset maker Nokia Corp Thursday posted a net loss of 929 million euros (USD 1.21 billion) for the January-March quarter of 2012 due to greater-than expected competition coupled with decline in sales.
In the year-ago period, the company had posted a net profit of 344 million euros, the Finnish company said in a statement.
For three months ended March 31, 2012, Nokia's net sales fell 29 percent from year-earlier to 7.35 billion euros.
The company, which has been struggling over recent years to compete with rivals Apple, Samsung Electronics and HTC, attributed its quarterly loss to greater than expected competitive challenges coupled with charges related to restructuring activities.
"We are navigating through a significant company transition in an industry environment that continues to evolve and shift quickly. Over the last year we have made progress on our new strategy, but we have faced greater than expected competitive challenges," Nokia CEO Stephen Elop said.
The company said it sold 82.7 million mobile devices during the first quarter, down from 108.5 million devices the in the year-ago period. Nokia's smartphone shipments declined to 11.9 million in the quarter under review from 24.2 million a year ago.
Nokia has registered decline in mobile phone sales across the geography. However, the decline was more prominent developing regions such as India, China and North America.
"The sequential decline in our mobile phones volumes in the first quarter 2012 was most pronounced in India and Europe," the company said.
Nokia said average selling prices for smartphones slipped to 143 euros in the first quarter of 2012 from 146 euros a year-ago, while average prices for basic mobile phones were decreased to 33 euros, down from 40 euros in the same quarter of 2011.
The company had announced to cut more than 14,000 jobs worldwide in the last one year in order to save over 1 billion euros for the full year 2013. Nokia said it plans to accelerate and substantially deepen devices and services cost savings, consistent with strategic focus. It would share further details as quickly as possible.
During the quarter, the company was burdened by 1.08 billion euros one-time restructuring charges,including about 772 million euros for Nokia Siemens.
In terms of geographical analysis, the company's revenues fell 21 percent to 1.82 billion euros from the Asia Pacific operations, 65 percent from China to 787 million euros, 28 percent from the Middle-East and Africa to 2.35 billion euros.
Overall sales of handsets in the Asia pacific region declined by 4 percent to 26.1 million, 62 percent in China to 9.2 million units, 50 percent in North America to 0.6 million units and 32 percent in Europe to 15.8 million units.
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