A $ 269 million, the producer of smartphones in the fourth quarter profit is a modest – except when compared to the large losses that preceded it.
Nokia has finally turned a profit.
Nokia may be down but certainly not out.
The company announced fourth-quarter earnings, and offered performance that could make its doomsayers think twice. During the fourth quarter, Nokia was able to generate a profit of EUR 202 million (269 million), a huge gain in the € 1 billion the company lost during the same period in 2011. However, the profit for the Nokia came amid slumping revenue, which fell from 10 billion euro in the fourth quarter of the last quarter 2011-8000000000.
On a full year basis, Nokia could not collect 30200000000 € in revenue, down 22 percent compared to € 38.7 billion were generated in 2011. The operating result 2012 is dropped to a loss € 2.3 billion, compared with a loss of € 1.1 billion throughout 2011.
Nokia devices and services running even took a few shots, with the fourth-quarter revenue rising from 6 billion in the last quarter 2011-3900000000. That division sales on an annual basis were down 34 percent.
Devices division has benefited from a strong showing for Lumia sales in the fourth quarter, which hit 4.4 million units worldwide. However, the division of smart devices could only collect 6.6 million units sold, helping the company to achieve a 66 per cent year-on-year decline.
Still, Nokia CEO Stephen Elop was pleased by the performance of his company:
We are very encouraged by the fact that the performance of our team against our business strategy has begun to translate into financial results. In particular, we are pleased that Nokia Group achieved profitability base of operations in the fourth quarter and for the full year 2012.
We remain focused on moving through our passage, which includes continuing to improve our product competitiveness, accelerate the way we operate and manage costs effectively. All these efforts are aimed at improving our financial performance and provide more value to our shareholders.
Even if shareholders might be a little ‘happy financial performance of Nokia, will not be happy to find that the company has no plans to pay dividends for 2012. In a statement today, Nokia said that while paying 20 cents per share in 2011, the Board will propose no dividend for 2012, in an attempt to improve the companies’ liquidity position. “
Despite some signs of hope in the fourth quarter, Nokia has offered some words of caution. The company reported today that it expects the first quarter of “being negative about 2 percent,” adding that he expects “the competitive dynamics of the industry [continue] to inhibit cell phones and smart Devices business unit.”