Nokia posts $1.2 bln loss in Q1 as sales plunge

[April 19, 2012]  HELSINKI (AP) -- Nokia Corp. said Thursday that tougher-than-expected competition pushed it to a net loss of (EURO)929 million ($1.2 billion) in the first quarter as sales plummeted, including for smartphones.

The loss compared with a net profit of (EURO)344 million a year earlier. Revenue fell 30 percent to (EURO)7.4 billion from (EURO)10.4 billion in 2011, and the company gave a dim outlook.

It said operating margins in the second quarter would be "similar to or below the first quarter 2012 level of negative 3 percent," and that it would speed up a cost cutting goal of (EURO)1 billion by 2013.

Nokia gave no details except to say it would share "further details as quickly as possible."

Net sales of devices crashed 40 percent to (EURO)4.2 billion in the quarter, while smartphone sales fell by more than half to (EURO)1.7 billion.

Nokia said it sold 83 million cellphones in the quarter, down from 108 million in 2011.

Markets had been expecting a downturn for Nokia, which gave a profit warning last week, and its share price was down slightly at (EURO)3.01 ($3.94) in early afternoon trading in Helsinki.

Last year, Nokia was still the world's top cellphone maker with annual unit sales of some 419 million devices. But in the last quarter of the year it posted a net loss of (EURO)1.07 billion, a marked reverse from the 745 million profit a year earlier, as sales slumped 21 percent with smartphone sales plunging 23 percent.

[Associated Press]

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