Feeds

Nokia writedowns wipe out profits

Numbers, margins and services all slumpy

Boost IT visibility and business value

Nokia lost €426m before tax in Q3 this year, as writedowns, a deflating global economy and freefalling American sales all took their toll.

That loss compares pretty badly to last year's pre-tax profit of more than €1.5bn. It comes on the back of 20 per cent drop in sales to $9.8bn. Margins on the sales it did make slipped by 3.1 per cent to 30.9 per cent.

Devices and Services share the blame with Nokia Siemens Networks for the sales slide. Nokia shifted 108.5 million devices between July and September, a drop of eight per cent on last year, while even Nokia admits the world market only dropped around seven per cent.

The NAVTEQ division saw a modest rise in sales of 5.7 per cent, but that's small potatoes. And the unit made a bigger loss than last year

Nokia Siemens Networks had a particularly grim old time: net sales down by 21 per cent and a €908m write-down on the unit contributing to the unit's overall operating loss of €1.1bn, and thereby blowing the whole firm's profits out of the water.

Ignoring the writedown and other charges, the firm reckons it would have reported operating profits of €741m, still 57.8 per cent down on the year.

Back in devices it's clear that the USA just isn't buying Nokia, with North American sales down 31.1 per cent on last year compared to a marginal European drop of 1.1 per cent. Overall the company's world share remains around 38 per cent, thanks to other companies experiencing even lower sales in Latin American, Africa and the Middle East, so worldwide Nokia remains the mobile phone of choice.

Olli-Pekka Kallasvuo, Nokia's CEO, tried to soften the blow by talking about component shortages and expense management, but it's hard to disguise such grim realities.

Kallasvuo expects industry mobile volumes to move up in the fourth quarter, with Nokia's share holding steady.

But that's still in a market that will be down 7 per cent on the eyar to 1.12 billion units. Still, last time around Nokia thought the total decline would be 10 per cent. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
UK fuzz want PINCODES on ALL mobile phones
Met Police calls for mandatory passwords on all new mobes
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
Fifteen zero days found in hacker router comp romp
Four routers rooted in SOHOpelessly Broken challenge
EE: STILL Blighty's best mobe network, says 'Frappucino' Moore
Fresh round of network stats fisticuffs possibly on the cards here
New Sprint CEO says he will lower axe on staff – but prices come first
'Very disruptive' new rates to be revealed next week
US TV stations bowl sueball directly at FCC's spectrum mega-sale
Broadcasters upset about coverage and cost as they shift up and down the dials
Tech city types developing 'Google Glass for the blind' app
An app and service where other people 'see' for you
Canadian ISP Shaw falls over with 'routing' sickness
How sure are you of cloud computing now?
UK mobile coverage is BETTER than EVER, networks tell Ofcom
Regulator swallows this line and parrots it back out at us. What are they playing at?
What's the nature of your emergency, Vodafone?
Oh, you've dialled the wrong number for ad fibs, rules ASA
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.