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HELSINKI: Nokia Oyj reported a first-quarter operating loss of 1.34 billion euros ($1.8 billion) on costs at Nokia Siemens Networks and forecast margins at the unprofitable equipment division to improve in the current period.
The loss was burdened by 1.1 billion euros one-time charges, including about 772 million euros for Nokia Siemens, the Espoo, Finland-based company said today. Sales slumped 29 per cent to 7.35 billion euros, the lowest in almost seven years.
Chief Executive Officer Stephen Elop, more than a year after adopting Microsoft Corp's Windows Phone software over Nokia's homegrown Symbian system, is struggling to halt slumping handset sales in emerging markets and sliding margins in smartphones. Nokia forecast today its venture with Siemens AG will clearly improve in the current quarter.
The stock has lost about 20 per cent of its value in the past week alone after Nokia said April 11 that its main handset business lost money last quarter and will do so again in the current period. It rose 1.4 per cent to 3.07 euros at 1:26 p m in Helsinki.
Elop vowed last week to take "significant" structural actions, potential asset sales, to survive amid competition with Apple Inc and Chinese manufacturers such as ZTE Corp.
Market share losses
Once dominant in the mobile-phone industry, Nokia's market capitalization has fallen by about 70 billion euros since Apple Inc introduced the iPhone in 2007. Last quarter, Nokia's shipments slid 24 per cent to 83 million phones, the lowest level in almost six years.
Nokia sold about 2 million handsets from its new Lumia line running Windows Phone. Still, its low-end phones failed to cover the costs of its smartphone transition as rivals introduced cheaper touchscreen models in India and China, many based on Google Inc.'s Android software.
Colin Giles, a 20-year Nokia veteran who was appointed by Elop in February 2011 to lead Nokia's sales organization, will leave Nokia in June for personal reasons, Nokia said. Giles ran the company's China operations before becoming executive vice president of sales, and stepped in again last year to revamp the company's China operations.
Elop has announced more than 10,000 job cuts since the linkup with Microsoft. Moody's Investors Service cut Nokia's rating to one step above junk this week, and said it may reduce it further if Lumia fails to pick up or if the handset margin deteriorates further. A further cut by any of the top three debt rating companies would put the ranking to junk.
TOI
The loss was burdened by 1.1 billion euros one-time charges, including about 772 million euros for Nokia Siemens, the Espoo, Finland-based company said today. Sales slumped 29 per cent to 7.35 billion euros, the lowest in almost seven years.
Chief Executive Officer Stephen Elop, more than a year after adopting Microsoft Corp's Windows Phone software over Nokia's homegrown Symbian system, is struggling to halt slumping handset sales in emerging markets and sliding margins in smartphones. Nokia forecast today its venture with Siemens AG will clearly improve in the current quarter.
The stock has lost about 20 per cent of its value in the past week alone after Nokia said April 11 that its main handset business lost money last quarter and will do so again in the current period. It rose 1.4 per cent to 3.07 euros at 1:26 p m in Helsinki.
Elop vowed last week to take "significant" structural actions, potential asset sales, to survive amid competition with Apple Inc and Chinese manufacturers such as ZTE Corp.
Market share losses
Once dominant in the mobile-phone industry, Nokia's market capitalization has fallen by about 70 billion euros since Apple Inc introduced the iPhone in 2007. Last quarter, Nokia's shipments slid 24 per cent to 83 million phones, the lowest level in almost six years.
Nokia sold about 2 million handsets from its new Lumia line running Windows Phone. Still, its low-end phones failed to cover the costs of its smartphone transition as rivals introduced cheaper touchscreen models in India and China, many based on Google Inc.'s Android software.
Colin Giles, a 20-year Nokia veteran who was appointed by Elop in February 2011 to lead Nokia's sales organization, will leave Nokia in June for personal reasons, Nokia said. Giles ran the company's China operations before becoming executive vice president of sales, and stepped in again last year to revamp the company's China operations.
Elop has announced more than 10,000 job cuts since the linkup with Microsoft. Moody's Investors Service cut Nokia's rating to one step above junk this week, and said it may reduce it further if Lumia fails to pick up or if the handset margin deteriorates further. A further cut by any of the top three debt rating companies would put the ranking to junk.
TOI
