New Delhi: Struggling Finnish handset maker Nokia's April-June 2012 quarter losses widened over three times to 1.52 billion euros even as it undergoes restructuring of its business.
The company had reported a loss of 492 million euros in the same quarter last year.
Its net sales were down 18 per cent to 7.5 billion euros in the second quarter of 2012 as compared to 9.2 billion euros in the same quarter last year.
"Nokia is taking action to manage through this transition period. While Q2 was a difficult quarter, Nokia employees are demonstrating their determination to strengthen our competitiveness, improve our operating model and carefully manage our financial resources," Nokia CEO Stephen Elop said in a statement.
As part of the restructuring process, Nokia had announced closure of its facilities in Ulm (Germany) and Burnaby (Canada) while it sold its luxury brand Vertu to a private equity firm. It had also announced slashing of up to 10,000 jobs globally by the end of 2013.
The Finnish company, which recently lost its leadership position to Korean handset maker Samsung, last month had also announced changes in senior management following the resignation of three officials including Chief Marketing Officer Jerri DeVard.
"We are executing with urgency on our restructuring programme. We are disposing of non-core assets like Vertu. We are taking the necessary steps to restructure the operations of the company," Elop said.
Nokia ended the quarter with gross cash of 9.4 billion euros and a net cash position of 4.2 billion euros.
"We held our net cash resources at a steady level after adjusting for the annual dividend payment to our shareholders. While Q3 will remain difficult, it is a critical priority to return our devices and services business to positive operating cash flow as quickly as possible," Elop said.
Analysts feel Nokia's guidance for third quarter is weak.
"Nokia’s Q2?12 sales were slightly ahead of expectations ... Guidance for Q3?12 is weak, but not unexpected. All depends on consumer adoption of Nokia?s Windows 8 phone due to launch in Q4?12," Liberum Capital analysts Janardan Menon and Eoin Lambe wrote in post-earnings research report.
Nokia, which has been witnessing tough competition from rivals Samsung and Apple Inc in the smartphone category, decided to phase out its Symbian smartphones in favour of a partnership with Microsoft.
The company launched 'Lumia', its first smartphone based on Windows operating system, in India in December last year.
First Published: Thursday, July 19, 2012, 20:36