International News

(Telecompaper) Nokia reported a net loss and sharp fall in sales in the fourth quarter, while announcing already over 1 million of its Windows Lumia smartphones sold. Due to an impairment charge of EUR 1.1 billion on its Location & Commerce services activities, the Finnish handset marker posted a net loss of EUR 0.29 per share, versus a profit of EUR 0.20 a year earlier. Excluding the impairment and other restructuring charges, EPS fell 73 percent to EUR 0.06. Sales were down 21 percent year-on-year to EUR 10.01 billion, driven by a 29 percent fall in sales at the main Devices & Services division, to EUR 6.0 billion. The number of phones shipped fell 8 percent from a year ago to 113.5 million, with smartphone sales down 31 percent to 19.6 million and feature phones dropping just 1 percent to 93.9 million. The average selling price was down 23 percent to EUR 53. Adjusted operating profit plunged 72 percent at Devices & Services, to EUR 292 million, giving a margin of 3.4 percent, in line with the company's guidance. Nokia forecast a further drop in the margin in Q1 to around breakeven, plus or minus 2 percent points, citing tough competition, a stronger seasonal decline than normal and time to ramp up new product launches. It also noted that Symbian sales are falling quicker than expected, due to competition from other low-cost smartphones, meaning it will sell fewer Symbian phones than previously forecast. Calling 2012 a "year of transition", the company did not give any annual outlook. CEO Stephen Elop said the company was "overall pleased" with the mobile phone business' performance, with a "beachhead" established in the battle among smartphone ecosystems. He cited continued strong growth in dual-Sim phones, including the new Asha models, and said Nokia will continue with the country-by-country roll-out of its new devices.