Elop upbeat despite £132m loss made by Nokia in Q3


CEO Stephen Elop encouraged by progress made in three month period despite profits and sales continuing to tumble

Nokia made a loss of £132 million in Q3, but CEO Stephen Elop insisted he was still encouraged by the progress being made by the handset manufacturer.

Nokia’s loss compared to a £281 million profit in the same period last year. Net sales fell 13 per cent to £7.8 billion year-on-year.

Sales of smartphones decreased 39 per cent to £1.9 billion. It sold 16.8 million smartphones in the quarter – down 38 per cent from a year ago.

Operating profit decreased to a loss of £62 million, compared to a profit of £352 million in Q3 2010. Net sales of its ‘Device and Services’ business decreased 25 per cent to £4.7 billion.

Average selling price fell 22 per cent from a year ago to £44, which was also down by 18 per cent from the last quarter.

Last month Nokia announced it would lay off around 3,500 employees globally, topping 10,000 job cuts so far this year. As of September 30, 2011, Nokia employed a total of 135,949 people.

Nokia CEO Stephen Elop said: “I am encouraged by the progress we made during Q3, while noting that there are still many important steps ahead in our journey of transformation.

“With each step, you will see us methodically implement our strategy, pursuing steady improvement through a period that has known transition risks, while also dealing with the various ups and downs that typify the dynamic nature of our industry.

“During the third quarter, we continued to take the action neccessary to drive the structual changes required for Nokia’s long-term success.

“We started to see signs of early improvement in many areas, but we must continue to focus on consistent progress so that we can move Nokia through the transformation and deliver superior results to our shareholders.”