Nokia Q1 2011 earnings report. 108.5M Nokia phones, 24.2M Nokia smartphones.

Nokia Q1 2011 earnings report is available for you guys to have a look at:

http://press.nokia.com/2011/04/21/nokia-q1-2011-net-sales-eur-10-4-billion-non-ifrs-eps-eur-0-13-reported-eps-eur-0-09/

Report in PDF AVAILABLE HERE .

• Devices and services, NAVTEQ and NSN sales up Year on Year, but down from previous quarter and down in profit.
• Note: post holiday season, more so, post February 11 (Nokia switching to Windows Phone) and aggressive competition from other manufacturers.

Here’s device details

• 24.2 Million smartphones. 13% more than last year.
• 84.3 Million “dumb” phones, 2% DOWN from last year (shift going to smartphones)
• 108.5 Million Nokia phones shipped. In 1 quarter.
• All down from last quarter, where Nokia alone sold 28.3 million smartphones.

FIRST QUARTER 2011 HIGHLIGHTS

• – Nokia net sales of EUR 10.4 billion in Q1 2011, up 9% year-on-year and down 18% sequentially (up 4% and down 18% at constant currency).
• – Devices & Services net sales of EUR 7.1 billion in Q1 2011, up 6% year-on-year and down 17% sequentially (up 1% and down 16% at constant currency).
• – Services net sales of EUR 211 million in Q1 2011, up 43% year-on-year and 5% sequentially; billings of EUR 338 million, up 48% year-on-year and down 4% sequentially.
• – Nokia total mobile device volumes of 108.5 million units in Q1 2011, up 1% year-on-year and down 12% sequentially.
• – Nokia converged mobile device (smartphone and mobile computer) volumes of 24.2 million units in Q1 2011, up 13% year-on-year and down 14% sequentially.
• – Nokia mobile device ASP (including services revenue) of EUR 65 in Q1 2011, up from EUR 62 in Q1 2010 and down from EUR 69 in Q4 2010.
• – Devices & Services gross margin of 29.1% in Q1 2011, down from 32.4% in Q1 2010 and 29.2% in Q4 2010.
• – Devices & Services non-IFRS operating margin of 9.8% in Q1 2011, down from 12.1% in Q1 2010 and 11.3% in Q4 2010.
• – NAVTEQ net sales of EUR 232 million in Q1 2011, up 23% year-on-year and down 25% sequentially (up 20% and down 26% at constant currency).
• – Nokia Siemens Networks net sales of EUR 3.2 billion in Q1 2011, up 17% year-on-year and down 20% sequentially (up 15% and down 21% at constant currency).
• – Nokia Siemens Networks non-IFRS operating margin of 0.1% in Q1 2011, down from 0.6% in Q1 2010 and 3.7% in Q4 2010.
• – Nokia operating cash flow of negative EUR 173 million and cash generated from operations of EUR 182 million in Q1 2011.
• – Total cash and other liquid assets of EUR 11.1 billion and net cash and other liquid assets of EUR 6.4 billion at the end of Q1 2011.
• – Nokia taxes continued to be unfavorably impacted by Nokia Siemens Networks taxes as no tax benefits are recognized for certain Nokia Siemens Networks deferred tax items. In Q1, this was partially offset by favorable profit mix both in Devices & Services and in Nokia Siemens Networks taxes. If Nokia’s estimated long-term tax rate of 26% had been applied, non-IFRS Nokia EPS would have been approximately 0.4 Euro cents higher in Q1 2011.

STEPHEN ELOP, NOKIA CEO:

“In the first quarter, we shifted from defining our strategy to executing our strategy. On this front, I am pleased to report that we signed our definitive agreement with Microsoft and already our product design and engineering work is well under way.

Following a solid first quarter, we expect a more challenging second quarter. However, we are encouraged by our roadmap of mobile phones and Symbian smartphones, which we will ship through the balance of the year. We are fully focused on delivering the needed accountability, speed and results to positively drive our future financial performance.”

NOKIA OUTLOOK

• – Nokia expects Devices & Services net sales to be between EUR 6.1 billion and EUR 6.6 billion in the second quarter 2011.
• – Nokia expects its non-IFRS operating margin in Devices & Services to be between 6% and 9% in the second quarter 2011.
• – Nokia targets its net sales in Devices & Services to be at approximately the same level in the third quarter 2011 as in the second quarter 2011, and targets its net sales in Devices & Services to be seasonally higher in the fourth quarter 2011, compared to the third quarter 2011.
• – Nokia targets its non-IFRS operating margin in Devices & Services to be between 6% and 9% in 2011.
• – Nokia targets to reduce Devices & Services’ non-IFRS operating expenses by 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 and Nokia Siemens Networks expect Nokia Siemens Networks’ net sales to be between EUR 3.2 billion and EUR 3.5 billion in the second 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 second quarter 2011.
• – Nokia and Nokia Siemens Networks continue to target Nokia Siemens Networks net sales to grow faster than the market in 2011.
• – Nokia and Nokia Siemens Networks continue to target Nokia Siemens Networks non-IFRS operating margin to be above breakeven in 2011.
• – Nokia and Nokia Siemens Networks continue to target 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
• – All items relating to Nokia Siemens Networks exclude the impacts of the planned acquisition of Motorola Solutions’ network assets.

Click on for full report:

http://press.nokia.com/2011/04/21/nokia-q1-2011-net-sales-eur-10-4-billion-non-ifrs-eps-eur-0-13-reported-eps-eur-0-09/

Category: Nokia