• 10 tips to find bargains

    Susan Erasmus gives advice on how bargain hunters can get the most bang for their buck.

  • Inside Labour

    Labour's bitter breaches need to be seen in historical context, says Terry Bell.

  • Rich getting richer

    Economists differ on how to tackle the chasm between rich and poor, says Leopold Scholtz.

Loading...
See More

Nokia losses deepen fourfold

Jul 19 2012 13:27 AFP

Related Articles

Nokia Siemens in SA to cut jobs

Nokia to axe 10 000 jobs worldwide

Nokia unveils cheap touch screen

Nokia's wake-up call

Fitch cuts Nokia to junk

Nokia's long goodbye

 

Helsinki - Nokia, which until recently was the world's biggest cellphone maker, reported a much worse-than-expected second quarter loss on Thursday as it presses on with a massive restructuring of its faltering business.

The Finnish company's chief executive Stephen Elop acknowledged in the earnings statement that the April-June period had been "a difficult quarter".

In the second quarter, Nokia posted a net loss of €1.41bn, about four times their loss of €368m during the same period a year earlier and more than double the loss anticipated by analysts.

Analysts polled by Dow Jones Newswires had expected Nokia to post a net loss of just €654m for the quarter.

While the company also suffered a 19% plung in sales to €7.54bn, it did beat analyst expectations that it would rake in €7.24bn.

Nokia, which recently lost its ranking of 14 years as the world's biggest mobile phone maker, dramatically changed its strategy a year and a half ago when chief executive, Stephen Elop, warned it was "standing on a burning platform" and needed to immediately shift course.

The Finnish company's new strategy involved phasing out its Symbian smartphones in favour of a partnership with Microsoft.

That alliance has produced a first line of Lumia smartphones, which Nokia is counting on to help it survive in a rapidly changing landscape marked by stiff competition from RiM's Blackberry, Apple's iPhone and handsets running Google's Android platform.

"We are executing with urgency on our restructuring programme," Elop said Thursday.

While the company is struggling, it still has a strong cash position, and although a dividends payment sent its net cash holdings down compared with the first quarter to €4.2bn, it stressed it had more available money than a year ago.

This security net led to a positive market response, sending its stock up 9.63% to €1.50 in early afternoon trading on the Helsinki stock exchange, which was up 0.87%.

That is still a far cry from the more than €8 investors were paying for each of its shares just before Elop announced the massive restructuring a year and a half ago.

apple  |  nokia  |  samsung electronics

NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
1 comment
Add your comment
Comment 0 characters remaining
 

Company Snapshot

Brought to you by BizNews

More from BizNews

We're talking about:

SMALL BUSINESS

Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.
 
 

10 most expensive cars In the world

This is car porn at its best!

 
 

Luxury living

5 millionaires turned murderers
The youngest billionaires in the world and how they made it
Watch: Flying first class has never been this luxurious!
What to expect inside a royal nursery

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

How do you see your boss? He/sheis:

Previous results · Suggest a vote

Loading...