Nokia Q4 2010 Earnings: 28.3M smartphones sold, +36% YoY, +7% QoQ

Today Nokia released their report for Q4 2010 earnings.

Nokia Q4 Report:

http://www.nokia.com/about-nokia/financials/quarterly-and-annual-information

43 page PDF Report Available Here:

http://www.nokia.com/results/Nokia_results2010Q4e.pdf

STEPHEN ELOP, NOKIA CEO:

“In Q4 we delivered solid performance across all three of our businesses, and generated outstanding cash flow. Additionally, growth trends in the mobile devices market continue to be encouraging. Yet, Nokia faces somesignificant challenges in our competitiveness and our execution. In short, the industry changed, and now it’s time for Nokia to change faster.”

Apologies on not being able to go over it myself. Hectic packing going on for Amsterdam (Will be back Monday)

Nokia in Q4 2010
January 27, 2011

In Q4 we delivered solid performance across all three of our businesses, and generated outstanding cash flow. Additionally, growth trends in the mobile devices market continue to be encouraging.
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• Reported net sales of EUR 12 651 million
  (EUR 11 988 million in Q4 2009)
• Reported operating profit of EUR 884 million
  (EUR 1 141 million)
• Reported earnings per share (diluted) of EUR 0.20 (EUR 0.26)

Net sales by reportable segment Q4 2010

	EURm	% of total net sales
Devices & Services	8 499	67
NAVTEQ	309	2
Nokia Siemens Networks	3 961	31
Nokia Group	12 651	100

Personnel by reportable segment December 31, 2010

Devices & Services	60 492
NAVTEQ	5 452
Nokia Siemens Networks	66 160
Group Common Functions	323
Nokia Group	132 427

Nokia outlook (January 27, 2010)

• Nokia expects Devices & Services net sales to be between EUR 6.8 billion and EUR 7.3 billion in the first quarter 2011.
• Nokia expects its non-IFRS operating margin in Devices & Services to be between 7% and 10% in the first quarter 2011.
• Nokia and Nokia Siemens Networks expect Nokia Siemens Networks’ net sales to be between EUR 2.8 billion and EUR 3.1 billion in the first quarter 2011.
• Nokia and Nokia Siemens Networks expect the non-IFRS operating margin in Nokia Siemens Networks to be between -3% and breakeven in the first quarter 2011.

Annual Information 2010

• Reported net sales of EUR 42 446 million (EUR 40 984 million in 2009)
• Reported operating profit of EUR 2 070 million (EUR 1 197 million)
• Reported operating margin of 4.9% (2.9%)
• Reported earnings per share (diluted) of EUR 0.50 (EUR 0.24)
• Nokia had strong R&D presence in 16 countries
• Nokia employed 132 427 people at year-end

Net sales by reportable segment 2010

	EURm	% of net sales
Devices & Services	29 134	68
NAVTEQ	1 002	2
Nokia Siemens Networks	12 661	30
Nokia Group	42 446

100

FOURTH QUARTER 2010 HIGHLIGHTS
– Nokia net sales of EUR 12.7 billion in Q4 2010, up 6% year-on-year and 23% sequentially (flat and up 24% at constant currency).
– Devices & Services net sales of EUR 8.5 billion in Q4 2010, up 4% year-on-year and 18% sequentially (down 3% and up 19% at constant currency).
– Services net sales of EUR 201 million in Q4 2010, up 21% year-on-year and 26% sequentially; billings of EUR 352 million, up 57% year-on-year and 8% sequentially.
– Nokia total mobile device volumes of 123.7 million units in Q4 2010, down 3% year-on-year and up 12% sequentially.
– Nokia converged mobile device (smartphone and mobile computer) volumes of 28.3 million units in Q4 2010, up 36% year-on-year and 7% sequentially.
– Nokia mobile device ASP (including services revenue) of EUR 69 in Q4 2010, up from EUR 64 in Q4 2009 and EUR 65 in Q3 2010.

• – Devices & Services gross margin of 29.2% in Q4 2010, down from 34.3% in Q4 2009 and up from 29.0% in Q3 2010.
• – Devices & Services non-IFRS operating margin of 11.3% in Q4 2010, down from 15.4% in Q4 2009 and up from 10.5% in Q3 2010.
• – NAVTEQ net sales of EUR 309 million in Q4 2010, up 37% year-on-year and 23% sequentially (up 33% and 27% at constant currency).
• – Nokia Siemens Networks net sales of EUR 4.0 billion in Q4 2010, up 9% year-on-year and 35% sequentially (up 7% and 37% at constant currency).
• – Nokia Siemens Networks non-IFRS operating margin of 3.7% in Q4 2010, down from 5.5% in Q4 2009 and up from -3.9% in Q3 2010.
• – Nokia operating cash flow of EUR 2.4 billion and cash generated from operations of EUR 2.5 billion in Q4 2010.
• – Total cash and other liquid assets of EUR 12.3 billion and net cash and other liquid assets of EUR 7.0 billion at the end of Q4 2010.
• – 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 Q4 2010, this was more than offset by a favorable profit mix and certain current quarter benefits 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 2.5 Euro cents lower in Q4 2010.

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Category: Nokia