Electronics Production | October 15, 2009
Nokia with operating loss of €426 million in 3Q
Finland-based mobile phone giant Nokia reported 3Q net sales of €9.8 billion, down 20% year on year and down 1% sequentially (down 19% and flat at constant currency).
Nokia’s 3Q/2009 reported operating loss was €426 million, compared with an operating profit of €1.5 billion in the 3Q/2008. Nokia’s 3Q/2009 non-IFRS operating profit decreased 58% to €741 million, compared with €1.8 billion in the 3Q/2008. Nokia’s third quarter 2009 reported operating margin was -4.3% (12.0%). Nokia’s third quarter 2009 non-IFRS operating margin was 7.6% (14.3%). Operating cash flow for the third quarter 2009 was €720 million, compared with €1.3 billion in the third quarter 2008. Total cash and other liquid assets were €7.4 billion at September 30, 2009, compared with €7.2 billion at September 30, 2008. At September 30, 2009, Nokia’s net debt-equity ratio (gearing) was –15%, compared with -18% at September 30, 2008. Olli-Pekka Kallasvuo, Nokia's CEO: "The demand for mobile devices improved in many markets during Q3. With the average selling price of our devices holding firm quarter-on-quarter, our higher device volumes translated into increased net sales in our Devices & Services business. Our volumes and net sales were, however, somewhat constrained by component shortages we encountered across the portfolio. I also want to highlight the good operating expense management that helped the segment deliver solid earnings. The challenging competitive factors and market conditions in the infrastructure and related services business necessitated non-cash impairment charges at Nokia Siemens Networks. We continue to support Nokia Siemens Networks actions to improve its performance.”