Nokia Reports Q3 2012 Earnings; $754 Million in Operating Losses

Nokia has reported its earnings for the third quarter of 2012, and they seem to be just as bad as ever. Probably even worse, considering that they should have improved by now. It reported a $754 million operating loss on net sales of $9.49 billion. It sold close to 2.9 million Lumia devices in Q3, 6.5 million Asha full touch units and close to 77 million devices in all. Device sales have been on a decline since a couple of years now, and Nokia’s move to Windows Phone doesn’t seem to be helping smartphone sales much.

Nokia’s CEO, Stephen Elop, said:

“As we expected, Q3 was a difficult quarter in our Devices & Services business; however, we are pleased that we shifted Nokia Group to operating profitability on a non-IFRS basis.

In Q3, we continued to manage through a tough transitional quarter for our smart devices business as we shared the exciting innovation ahead with our new line of Lumia products.

In our mobile phones business, the positive consumer response to our new Asha full touch smartphones translated into strong sales. And in Q3, our mobile phones business delivered a solid quarter with sequential sales growth and improved contribution margin.

In Location & Commerce, we made progress establishing our platform offering with customers like Amazon. This is in line with our plan to expand our location offering to more customers.

And, Nokia Siemens Networks had a remarkable quarter in which we achieved record profitability on a non-IFRS basis and the Nokia Siemens Networks cash balance increased for the fourth quarter in a row.

While we continue to focus on transitioning Nokia, we are determined to carefully manage our financial resources, improve our competitiveness, return our Devices & Services business to positive operating cash flow as quickly as possible, and ultimately provide more value to our shareholders.”

Nokia ended the quarter with roughly $10 billion in cash and cash equivalents.

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