Nokia releases Q3 results, $755 million loss for quarter
updated 07:57 am EDT, Thu October 18, 2012
Improvement on $1 billion loss in Q2
Nokia has revealed it made a total operating loss of $755 million for the third quarter, in its latest set of results. This continues a trend that the company has endured though the year, losing $1 billion last quarter alone and $775m lost in the first quarter of 2012. The quarterly loss comes in despite receiving $9.4 billion in revenues.
Nokia CEO Stephen Elop called Q3 “a difficult quarter” for its Device and Services division, though its operating margin has improved quarter-on-quarter to negative 7.4-percent. Lumia sales for the quarter totaled 2.9 million units, which in theory should increase in the next quarter, if handsets such as the Lumia 920 running Windows Phone 8 are well-received by customers. Mobile sales for the quarter increased to 77 million units, 6.5 million of which is due to the strong sales of the Asha smartphone line.
The net cash held by the company is currently $3.6 billion, down from the $5.5 billion last quarter, lower than the $6.64 it held last year, and pales in comparison to the $11 billion held just five years ago. Though it hopes sales will pick up, Nokia is looking at other ways to cut its losses. A potential sale of the Nokia House headquarters in Espoo, Finland would generate between $260 million and $390 million, while its business support systems unit may end up being purchased by Ericsson for $377 million. The company is still working through its plan to cut 17,000 jobs by 2013, and closed its last Finnish manufacturing plant in July.
