Nokia posts £760m loss as sales plummet
Thursday 19 April 2012
Plummeting sales, including for smartphones, have helped push Nokia to a net loss of €929 million (£760 million) in the first quarter, the firm has announced.
The loss compared with a net profit of 344 million euro (£281 million) a year earlier. Revenue fell 30% to 7.4 billion euro (£6.1 billion) from 10.4 billion euro (£8.5 billion) in 2011, and the company gave a dim outlook warning of stronger than expected competition.
It said operating margins in the second quarter would be "similar to or below the first quarter 2012 level of negative 3%," and that it would speed up a cost cutting goal of one billion euro (820 million) by 2013.
Nokia gave no details except to say it would share "further details as quickly as possible."
Net sales of devices crashed 40% to 4.2 billion euro (£3.44 billion) in the quarter, while smartphone sales fell by more than half to 1.7 billion euro (£1.39 billion).
Nokia said it sold 83 million mobile phones in the quarter, down from 108 million in 2011.
Markets had been expecting a downturn for Nokia, which gave a profit warning last week, and its share price was down slightly at 3.01 euro in early afternoon trading in Helsinki.
Last year, Nokia was still the world's top mobile phone maker with annual unit sales of some 419 million devices.
But in the last quarter of the year it posted a net loss of 1.07 billion euro (£888 million), a marked reverse from the 745 million euro (£609 million) profit a year earlier, as sales slumped 21% with smartphone sales plunging 23%.
- 1 'We're not heroes, just tourists': Swedish police officers on holiday stop vicious assault on New York subway
- 2 Black Mass trailer: Johnny Depp might have started making good films again
- 3 Jacob Lescenski and Anthony Martinez: Straight student asks gay friend to High School prom and makes a million Twitter friends
- 4 Buckingham Palace guard who attacked passers-by in 'most most violent piece of CCTV footage' police officer had seen walks free
- 5 Australian student Tommy Connolly, 23, adopts his pregnant, homeless 17-year-old cousin to give her a chance at 'a better life'
Top 20 misconceptions people believe are true
Sofyen Belamouadden murder: The inside story of a crime that horrified Britain
'We're not heroes, just tourists': Swedish police officers on holiday stop vicious assault on New York subway
Head transplant: man will be attached to new body in under an hour and aim is immortality, doctor says
Buckingham Palace guard who attacked passers-by in 'most most violent piece of CCTV footage' police officer had seen walks free
The sickening truth about food banks that the Tories don't want you to know
Katie Hopkins on LBC: Listen to caller taking The Sun columnist to task over migrant comments
Migrant boat disaster: Ukip candidate mocks victims in sickening Twitter post
Nigel Farage wants the BBC to stop making programmes like Doctor Who, Strictly Come Dancing, and Top Gear
Global warming: Scientists say temperatures could rise by 6C by 2100 and call for action ahead of UN meeting in Paris
General Election 2015: Britain would become a 'communist dictatorship' under Ed Miliband and Nicola Sturgeon, claims wife of Michael Gove
iJobs Money & Business
£50000 - £55000 per annum: Ashdown Group: Business Analyst - Financial Service...
£18000 - £23000 per annum + OTE £45K: SThree: At SThree, we like to be differe...
£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is the o...
£22000 - £24000 per annum: Recruitment Genius: This is an opportunity to join ...