14 DAY TRIAL // Finnish mobile phone maker Nokia has had a rough second quarter of 2011, and the financial results the company has just posted reflect exactly that.
During the time frame, the company managed to sell a number of 88.5 million mobile phones on a global scale, down no less than 20 percent when compared to the same time frame of the last year.
The company also announced that it managed to score 9.275 billion Euros in net sales during the three-month period, a drop of 7 percent when compared to last year’s second quarter, and of 11 percent from the previous quarter.
In the devices and services area, Nokia announced sales of 5 467 million Euros, down 20 percent from the last year and 23 percent from the first quarter of the year.
They also unveiled smartphone shipments of only 16.7 million during the second quarter of the year, compared to 25.2 million they shipped last year, and 24.2 they sold in Q2 2010.
Shipments of feature phones went down as well, with only 71.8 million units sold in the time frame, compared to 85.8 a year ago and 84.3 in the previous quarter.
The company's net cash from operating activities was a loss of 176 million Euros, compared to the 944 million Euros they registered in the same time frame a year ago.
“The challenges we are facing during our strategic transformation manifested in a greater than expected way in Q2 2011,” Stephen Elop, Nokia CEO, stated.
“However, even within the quarter, I believe our actions to mitigate the impact of these challenges have started to have a positive impact on the underlying health of our business. Most importantly, we are making better-than-expected progress toward our strategic goals.”
For the next quarter, the company expects a similar financial performance, with net cash and other liquid assets to be above the EUR 3.9 billion that they registered at the end of the second quarter.
“Nokia expects its non-IFRS Devices & Services operating margin in the third quarter 2011 to be slightly above breakeven, ranging either above or below this level by approximately 2 percentage points,” the company notes.
The company is set to significantly reduce its Devices & Services non-IFRS operating expenses, targeting a reduction by EUR 1 billion for the full year 2013, when compared to the EUR 5.65 billion it registered as Devices & Services non-IFRS operating expenses for full year 2010.