Nokia Q3 results: Better than expected, still down from last year

Nokia posted their third-quarter numbers for 2011 and the news is hopeful. While overall they suffered a net loss of -€71 million (around $99 million CAD), adjusted to exclude non-IFRS expenses such as acquisitions and operating they made a €232 million profit. The Devices and Services division had a non-IFRS profit of €22 million ($30.8 million CAD) with a gross margin of 4.7%. Overall profit was down 60% from the previous year. Sales were at €8.9 billion, or $12.4 billion CAD.

Overall handset sales fell less than analysts expected: 106.6 million handsets shipped, down just 3% for the year, but mobile phone shipments actually increased 25%, spurred by increased sales for dual-SIM devices in India, and decreased handset costs. Smartphone shipments were also lower, but churn slowed; the company sold 16.8 million smartphones, down a sizable 34% year-over-year, but increased slightly from last quarter.

There is optimism among the Nokia faithful. While the quarter’s results could not be considered anything but disappointing, the Finnish giant has begun significantly cutting costs, focusing on markets in which they know there is growth potential. They are still the third largest phone manufacturer in the world, behind Samsung and Apple, and with lower phone prices across the board they are making inroads into growing low-cost markets in which their main competitors can’t effectively compete.

They hope to turn a larger profit in the next two quarters as shipments of their Windows Phone devices begin in earnest, aiming to sell to a hungry North American market which has yet to embrace them.

We’ll find out more in the next week as Nokia World approaches.

Source: Nokia
Via: All Things Symbian