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Nokia Posts Q4 Profit, North American Handset Gain

Espoo, Finland — Nokia posted a fourth-quarter consolidated operating profit of 439 million euros ($586.2 million), reversing a year-ago loss of 954 million euros ($1.27 billion) and interrupting a string of six consecutive quarterly losses.

The company’s full-year operating losses, however, grew to 2.3 billion euros ($3.07 billion) from the previous year’s loss of 1.1 billion ($1.47 billion).

Although cellular handset revenues fell worldwide in the quarter and year, as did Nokia’s global smartphone revenues, North American handset sales gained in the quarter. Handset revenues in North America grew 270 percent from the year-ago quarter to 196 million euros ($261.7 million) and for the full year by 28 percent to 453 million euros ($604.8 million). North American unit sales of handsets grew 40 percent in the quarter to 700,000 compared with the year ago quarter. In the third quarter, North American handset unit sales had fallen 57 percent to 300,000.

Although North American handset revenues rose sharply, they still accounted for only 5 percent of Nokia’s global handset revenues in the quarter.

Despite generating a fourth-quarter profit, Nokia posted a 20 percent decline in global consolidated revenues to 8.04 billion euros ($10.7 billion) in the quarter and a 22 percent decline for the year to 30.2 billion ($40.3 billion).

In its cellular handset division, global revenues fell 36 percent to 3.85 billion euros ($5.14 billion), primarily because the company sold off its luxury Vertu cellphone business. Full-year handset revenues fell 34 percent to 15.7 billion euros ($20.9 billion).

Worldwide handset revenues fell 24 percent to 86.3 million euros ($115.2 million) and for the year by 20 percent to 335.6 million euros ($447.9 million). Sales of smartphones fell 55 percent to 1.225 billion euros and by 50 percent for the year to 5.446 billion.

Currency conversions reflect a rate of $1.34 to the euro.