Nokia: Two thousand Lumia cellular phones marketed in Q1 but profits still falling

Nokia offered initial information on certain aspects of its first one fourth 2012 economical performance, with a diminished first one fourth 2012 perspective for Gadgets & Solutions. During the first one fourth 2012, multiple aspects badly impacted The lenders Gadgets & Solutions company to a greater extent than formerly predicted. These aspects included:

• Aggressive industry characteristics, which badly impacted net revenue in the Mobile Phones and Sensible Gadgets sections, particularly in Indian, the Middle East and African-american and China; and
•  Major edge decreases, particularly in the Sensible Gadgets company device.

The impact of these aspects on the non-IFRS Gadgets & Solutions managing edge in the first one fourth 2012 was partly balanced out by a considerable advantage from reduced assurance expenditures.

Updated perspective for Gadgets & Solutions for the first one fourth 2012:

Nokia currently reports that its non-IFRS Gadgets & Solutions managing edge in the first one fourth 2012 was roughly adverse 3 %, compared to the formerly predicted variety of "around breakeven, ranging either above or below by roughly 2 percentage points" primarily due to the aspects mentioned above.

Outlook for Gadgets & Solutions for the second one fourth 2012:

Nokia desires its non-IFRS Gadgets & Solutions managing edge in the second one fourth 2012 to be similar to or below the first one fourth 2012 level. This perspective shows that the first one fourth 2012 advantage relevant to reduced assurance expenditures is predicted to be non-recurring, as well as objectives regarding a number of aspects including:

• competitive industry characteristics continuous to badly affect the Sensible Gadgets and Mobile Phones company units;
• time, ramp-up, and consumer demand relevant to new products; and
• the macroeconomic environment.

"Our frustrating Gadgets & Solutions first one fourth 2012 economical outcomes and perspective for the second one fourth 2012 features that our Gadgets & Solutions company continues to be in the middle of move," said Stephen Elop, Chief executive and CEO of Nokia. "Within our Sensible Gadgets company device, we have established early strength with Lumia, and we are improving our assets in Lumia to achieve industry success. Our owner and supplier lovers are providing solid support for Windows Cellphone as a third environment, as confirmed most recently by the launch of the Lumia 900 by AT&T in the United States."

Additional comments on the first one fourth 2012 for Gadgets & Solutions and Nokia:

Nokia currently reports that Gadgets & Solutions net revenue in the first one fourth 2012 were EUR 4.2 thousand, comprised of Mobile Phones net revenue of EUR 2.3 thousand (71 thousand units), Sensible Gadgets net revenue of EUR 1.7 thousand (12 thousand units), and Gadgets & Solutions Other net revenue of EUR 0.2 thousand. Based on the initial view, Nokia ended the first one fourth 2012 around the high end of our normal 4 to 6 week route stock variety, but on an absolute device basis, route selections dropped sequentially.

Nokia currently reports that Gadgets & Solutions gross edge (including Gadgets & Solutions Other) for the first one fourth 2012 was roughly 25%, with Mobile Phones gross edge of roughly 26% and Sensible Gadgets gross edge of roughly 16%.

In the first one fourth 2012, Nokia marketed more than 2 thousand Lumia devices at an average rate of roughly EUR 220 (reported within the Sensible Gadgets company unit). Furthermore, Nokia has seen constant growth in Lumia device activations every month since starting revenue of Lumia devices in Nov 2011. Lumia has obtained business with both submission lovers and customers. The Windows Cellphone environment is also gaining designers and has extended rapidly with more than 80,000 applications available.

Nokia currently reports that at the end of the first one fourth 2012, the organization's gross money and other fluid resources were roughly EUR 9.8 thousand, and The lenders net money and other fluid resources were roughly EUR 4.9 thousand. The constant decrease in net money and other fluid resources was driven by Gadgets & Solutions, which experienced undesirable and mostly non-recurring net funds changes as well as managing failures. Nokia Siemens Systems provided efficiently to The lenders income in the first one fourth 2012 due to net funds improvements. This was despite Nokia Siemens Systems having a preliminarily estimated non-IFRS managing edge of roughly adverse 5 % in the first one fourth 2012, in line with the formerly offered perspective.

Actions to Address Aggressive Industry Dynamics Affecting Gadgets & Services

Nokia is easily acting. Nokia will continue to improve its focus on increasing Lumia revenue, as well as on lowering the organization's price structure, improving income and maintaining a strong budget.

• In the Sensible Gadgets company device, Nokia is improving assets in Lumia to carry more items to more customers in more markets.
• In the Mobile Phones company device, Nokia is getting strategic costs activities in the near term and plans to carry new items to promote in the second one fourth 2012.
• Nokia will improve planned price discount rates and will engage in extra considerable architectural activities if and when necessary.

"We are continuous to improve the clock speed of the company," said Stephen Elop, Chief executive and CEO of Nokia. "The change is physical, and we are proud of the way Nokia employees are easily addressing the needs of customers and lovers."

Nokia will provide full first one fourth outcomes and more details when it reports its first one fourth 2012 outcomes on Apr 19, 2012.