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Nokia Q4 Cellphone Sales, Operating Profits Slide

1/26/2012 09:55:26 AM Eastern

Helsinki, Finland - Nokia cited
its transition to the Windows Mobile smartphone platform and declining sales of
its Symbian-based smartphones for a 29 percent decline in fourth-quarter
cellphone revenues.

Nokia reported cellphone revenues
of to 5,997 million euros ($7.9 billion) and an 18 percent decline for the full
year to 23,943 million euros ($31.5 billion).

The cellphone business nonetheless
posted a 203 million euro ($267.3 million) operating profit, though it was down
81 percent from the year ago and down for the full year by 75 percent to 884
million ($1.16 billion).

Including the company's
network-infrastructure and Navteq and social-locations services, however, Nokia
posted a consolidated operating loss in the quarter of 954 million euros ($1.26
billion) compared with a year-ago operating profit of 884 million euros ($1.16
billion).

For the year, consolidated operating
results swung to the red with a loss of 1,073 million euros ($1.41 billion) compared
with an operating profit of 2,070 million euros ($2.72 billion).

The results include 1,432 million
euros ($1.88 billion) in restructuring and one-time good-will impairment
charges that, if removed, would have resulted in an operating profit of 478
million ($629.1 million) for the quarter, down 56 percent from the year ago,
and a full-year operating profit of 1,825 million ($2.4 billion), down 43
percent.

In the first quarter of 2012,
however, the company said it expects "substantial charges" as a result of
restructuring in its network-infrastructure business.

Handset dollar volume was down 29
percent for the quarter to 5,997 million euros but up sequentially by 11
percent. Handset sales were down 18 percent for the year to 23,943 million
euros. In units, phone sales were down 8 percent to 113.5 million units year over
year but up sequentially by 6 percent. Full-year unit sales were down 8 percent
to 417.1 million.

In the North American market,
cellphone volume fell in the quarter by 77 percent to 53 million euros and in
units by 81 percent to 500,000.

For 2013, the company continues
to target a reduction in cellphone-group operating expenses by more than 1
billion euros, including a planned reduction in the employee head count,
attrition, a reduced number of outsourced personnel, and reductions in facility
costs.

Currency conversions were based
on a conversion rate of 1 euro to $1.32.

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