Nokia Q3 2009 Results | N-Series sales still dropping

15. October 2009 at 21:17

Nokia published the results for Q3 2009 today, reporting a net loss of EUR 559 million (operating loss of EUR 426 million). According to the Guardian, this is the first quarterly loss the Finnish giants have encountered in over a decade. However, Nokia’s device and service division went up 3% from the previous quarter. Thus the profit is EUR 785 million which is 50% less than one year ago.

Highlights

  • A third quarter operating loss of EUR 426 million compared to a profit of EUR 1.5 billion in Q3 2008.
  • Net sales for services and software were up by 29% compared to last year bringing in EUR 148 million.
  • 16.4 million smartphones were sold, of which 4.5 million were Nseries, 4.6 million were Eseries and 7.5 million were numbered Nokia S60 devices

The results were mainly weighed down by a EUR 908 million charge for a write down in the value of telecom equipment maker Nokia Siemens Networks, a joint venture with Germany’s Siemens. Nokia also mentioned that device sales were held up by component shortages, which is expected to continue to some degree into Q4.

This is what the Nokia CEO Olli-Pekka Kallasvuo had to say:

“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.”

You can view the full detailed report here.