NSN reports Q1 net profit of 124 million euro

Company had reported net loss of 143 million euros in the January-March quarter of last year

Global telecom equipment maker Nokia Solutions and Networks has reported net profit of 124 million euros for the first quarter of 2014 on account of improved profitability.

NSN had reported net loss of 143 million euros in the January-March quarter of last year.

"On a year-on-year basis, our result in the first quarter of 2014 has improved significantly due to lower restructuring related charges and improved profitability as part of our successful transformation to date," NSN said in a statement.

Net sales of the company, however, declined 14.3% to 2,328 million euros, as compared to 2,717 euros in Q1 of last year.

The company attributed the decline in sales partially to divestments of businesses not consistent with its strategic focus, as well as the exiting of certain customer contracts and countries.

"Excluding these two factors, our net sales in the first quarter of 2014 declined year-on-year by approximately 10%, primarily due to lower net sales in global services," the company said.

The company added that its net sales were also negatively affected by foreign currency fluctuations.

On a regional basis, compared to the first quarter of 2013, net sales in North America declined 35%, in Middle East and Africa they declined 36% and 23% respectively.

Asia Pacific net sales declined 24% primarily due to a decline from the height of LTE network roll-outs in the first quarter of 2013 in Korea and in Europe net sales declined 9%.

At the end of Q1, 2014 NSN had approximately 48,500 employees, a reduction of approximately 8,200 employees compared to the year-ago period.

Nokia has three businesses left after sale of its struggling mobile phone-unit to Microsoft: the networks division or NSN, its maps business and the unit responsible for licensing its patents.