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© Nokia Electronics Production | October 20, 2011

Nokia: operating profit down in Q3

Nokia has released its Q3 results today. Net sales amount to 8.9 Eur billion (decreased from 10.2 billion in YoY). Operating profit decreased from 403 Eur million, showing a loss of 71 Eur million.
FInland based mobile phone giant Nokia, headquartered in Espoo, reported a third quarter operating loss of 71 Eur million. Sales declined 13 percent YoY reaching 8.9 Eur billion (3Q/2010: 10.2 Eur billion). The company shipped 18 million dual SIM devices in the quarter and sold sold 16.8 million smart devices. Mobile phone volume reached 89.8 million units.

Stephen Elop, Nokia CEO said: "Our results in Q3 indicate that our sales execution and channel inventory situation have improved. From a product standpoint, our overall Mobile Phones portfolio performed well. We shipped approximately 18 million dual SIM devices in Q3, and in markets such as India where dual SIM is pervasive, we gained market share. We also strengthened our Smart Devices line up in Q3, with the launch of our first smartphones running Symbian Belle, which improves the user experience and strengthens the competitiveness of our product portfolio".

© Nokia

NOKIA OUTLOOK

- Nokia expects its non-IFRS Devices & Services operating margin in the fourth quarter 2011 to be between 1% and 5%. This outlook is based on our expectations regarding a number of factors, including:
- competitive industry dynamics;
- an expected sequential increase in Devices & Services net sales;
- an expected greater-than-normal seasonal increase in Devices & Services operating expenses as Nokia launches new products;
- timing, ramp-up, and consumer demand related to our new products;
-availability of components from our suppliers; and
- the macroeconomic environment.
- Nokia continues to target to reduce Devices & Services non-IFRS operating expenses by more than EUR 1 billion for the full year 2013, compared to the full year 2010 Devices & Services non-IFRS operating expenses of EUR 5.65 billion.
- Nokia continues to expect Nokia Group net cash and other liquid assets at the end of 2011 to be above the EUR 3.9 billion balance at the end of the second quarter 2011.
- Nokia and Nokia Siemens Networks expect Nokia Siemens Networks' net sales to be between EUR 3.7 billion and EUR 4.0 billion in the fourth quarter 2011.
- Nokia and Nokia Siemens Networks expect the non-IFRS operating margin in Nokia Siemens Networks to be between 1% and 4% in the fourth quarter 2011.
- Nokia and Nokia Siemens Networks continue to expect Nokia Siemens Networks' net sales to grow faster than the market in 2011.
- Nokia and Nokia Siemens Networks continue to expect Nokia Siemens Networks' non-IFRS operating margin to be above breakeven in 2011.
- Nokia and Nokia Siemens Networks continue to expect Nokia Siemens Networks to reduce its non-IFRS annualized operating expenses and production overheads by EUR 500 million by the end of 2011, compared to the end of 2009.
- The outlook relating to Nokia Siemens Networks includes the impact of the acquisition of Motorola Solutions' networks assets.

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