Nokia Q4 2012 Results: $585 Million Profit

Bit of a nice headline at TheVerge. After several quarters of losses, Nokia seems to have recorded a profit of $585 Million ($10.83 Billion Revenue). Good (small) steps in the right direction no? As noted by the Verge, that’s significantly better than the 700M+ loss last quarter or the 1.2B loss last year (as part of the restructuring efforts). Nokia’s net cash rises from $4.7 Billion to 5.8 Billion.

Most of the profit, coming from, oddly enough, NSN.

Here’s the PDF document:

http://www.results.nokia.com/results/Nokia_results2012Q4e.pdf

 

Fourth quarter 2012 highlights:
Nokia Group non-IFRS EPS in Q4 2012 was EUR 0.06; reported EPS was EUR 0.05.

• – Nokia Group achieves underlying operating profitability, with Q4 non-IFRS operating margin of 7.9%.
• – Nokia Group strengthened its net cash position by approximately EUR 800 million sequentially, of which
• approximately EUR 650 million was generated by Nokia Siemens Networks.
• – Devices & Services Q4 non-IFRS operating margin improved quarter-on-quarter to 1.3%, due to an increase in
• gross margin as well as a decrease in operating expenses.
• – Nokia Siemens Networks non-IFRS operating margin improved quarter-on-quarter and year-on-year to a
• 14.4% in Q4, the highest level of underlying operating profitability since its formation in April 2007, primarily
• due to an increase in gross margin.

Full year 2012 highlights:
Nokia Group full year 2012 non-IFRS EPS was EUR -0.17; reported EPS was EUR -0.84.

• – Nokia Group achieves underlying operating profitability, with full year 2012 non-IFRS operating margin of
• 0.4%.
• – Nokia Group ends 2012 with a strong balance sheet and solid cash position. Gross cash was EUR 9.9 billion and
• net cash was EUR 4.4 billion, after incurring cash outflows related to restructuring of approximately EUR 1.5
• billion and dividend payment of approximately EUR 750 million.
• – To ensure strategic flexibility, the Nokia Board of Directors will propose that no dividend payment will be made
• for 2012 (EUR 0.20 per share for 2011). Nokia’s Q4 financial performance combined with this dividend proposal
• further solidifies the company’s strong liquidity position.

79.6 Million mobile phones

6.6 Million Smart devices.

There’s an odd split here though…(total 86.3M devices this quarter)

9.3 Million Asha Smartphones

4.4 Million Lumia Smartphones

2.2 Million Symbian Smartphones.

The Nokia Outlook:

• – Nokia expects its Devices & Services non-IFRS operating margin in the first quarter 2013 to be approximately negative 2 percent, plus or minus four percentage points. This outlook is based on Nokia’s expectations regarding  a number of factors, including:
  • – competitive industry dynamics continuing to negatively affect the Mobile Phones and Smart
  • Devices business units;
  • – the first quarter being a seasonally weak quarter;
  • – consumer demand, particularly for our Lumia and Asha smartphones;
  • – continued ramp up for our new Lumia smartphones;
  • – expected cost reductions under Devices & Services’ restructuring program; and
  • – the macroeconomic environment

Nokia continues to target to reduce its Devices & Services non-IFRS operating expenses to an annualized run rate
of approximately EUR 3.0 billion by the end of 2013.
– Nokia expects Location & Commerce non-IFRS operating margin in the first quarter 2013 to be negative due to
lower recognized revenue from internal sales, which carry higher gross margin, and to a lesser extent by a
negative mix shift within external sales.
– Nokia and Nokia Siemens Networks expect Nokia Siemens Networks non-IFRS operating margin in the first
quarter 2013 to be approximately positive 3 percent, plus or minus four percentage points. This outlook is based
on Nokia Siemens Networks’ expectations regarding a number of factors, including:

• – competitive industry dynamics;
• – the first quarter being a seasonally weak quarter;
• – product and regional mix;
• – expected continued improvement under Nokia Siemens Networks’ restructuring program; and
• – the macroeconomic environment.

Nokia Siemens Networks now targets to reduce its non-IFRS annualized operating expenses and production overheads by more than EUR 1 billion by the end of 2013, compared to the end of 2011. Nokia Siemens Networks previous target was to reduce its non-IFRS annualized operating expenses and production overheads by EUR 1 billion by the end of 2013, compared to the end of 2011.

Cheers Alvester for the heads up.

Category: Nokia