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Nokia Reports Lower Sales, Loss For Q3

10/15/2009 02:31:45 PM Eastern

Espoo, Finland - Nokia is optimistic about mobile phones for the balance of the year, but reported a double-digit drop in net sales and loss in the third quarter compared with last year.

The loss was reportedly due to more than $1.3 billion in charges on Nokia Siemens Networks, a joint venture with Siemens AG

Third-quarter sales were down 19.6 percent in euros, and its operating loss was $634 million, compared with operating profit of $2.23 billion in the prior year's third quarter.

Nokia expects industry mobile device volumes to be approximately 1.12 billion units in 2009, down approximately 7 percent from approximately 1.21 billion units Nokia estimated for 2008. This is an update to Nokia's earlier estimate of industry mobile device volumes declining approximately 10 percent in 2009 from 2008 levels.

Nokia CEO Olli-Pekka Kallasvuo said in a prepared statement: "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 and services business. Our volumes and net sales were, however, somewhat constrained by component shortages we encountered across the portfolio."

Nokia expects industry mobile device volumes in the fourth quarter 2009 to be up sequentially, and expects its mobile device market share in the fourth quarter 2009 to be approximately at the same level sequentially.

In North America, Nokia reported that it sold 3.1 million mobile devices during the third quarter, down 31.1 percent from last year's third quarter when it sold 4.5 million units.

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