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Nokia posts 151 mn euros loss in Q3

Read more on:    Nokia | Cell Phone Maker
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today reported a net loss of euro 151 million for the three months ended September 30, as a slump in sales of handsets and smart devices took a toll on the company.

The world's largest , which has embarked on massive restructuring efforts, is in the red for the second straight quarter.

In the September quarter, Nokia recorded a loss of 151 million euros on net sales of 8.98 billion euros. The entity had a net profit of 322 million euros in the year-ago period.

Amid falling revenues from handsets as well as smart devices, the company's net sales slumped from 10.27 billion euros in the same period a year-ago.

While net sales of smart devices tumbled 39%, that of mobile phones dropped 14%.

Reflecting tough business conditions, mobile device volumes, too, declined to 106.6 million units in 2011 September quarter as compared to 110.4 million units in year-ago period.

Nokia is facing intense competition, especially in the smartphone segment, from Apple and players such as Samsung that use Google's Android operating system.

"I am encouraged by the progress we made during Q3, while noting that there are still many important steps ahead in our journey of transformation," Nokia CEO Stephen Elop said in a statement.

"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," he noted.

Looking at ways to rejuvenate its sagging business, Nokia has unveiled a slew of measures including job cuts and operational restructuring.

The company expects to bring down operating expenses by more than one billion euros for the full year 2013.

This reduction is expected to come from various initiatives, including planned cuts in head count, normal personnel attrition and a reduction in the use of outsourced professionals, among others.

As a part of restructuring, Nokia has outsourced its Symbian software development and support activities to Accenture. The move also saw transfer of about 2,300 of the Finnish major to Accenture.

"...In Q3, we announced plans for structural changes in manufacturing, Location & Commerce and supporting functions. The planned changes we have initiated are difficult but necessary in order to align the company to our strategy," the statement said.

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