Nokia Corporation (ADR) (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) reported disappointing fourth quarter results on Thursday. The Finnish mobile company said that its overall business incurred a net loss of $34 million for the quarter ending December 31. Handset sales declined 29% YoY and 5% QoQ to 8.2 million units. Nokia didn’t explicitly state how many Lumia units it sold during the quarter. The company had sold 8.8 million units in the previous quarter. For the full year, Nokia sold 30 million Lumia units in 2013.
Nokia’s devices & services business suffers loss
The devices & services unit, which Nokia Corporation (ADR) (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) sold to Microsoft Corporation (NASDAQ:MSFT) for $7.2 billion, witnessed its sales declining from 3.7 billion euros to 2.6 billion euros YoY. The unit incurred a net loss of 191 million euros, compared to a 97 million profit in the corresponding quarter a year ago.
Sales at Nokia Corporation (ADR) (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V)’s networking equipment division, NSN plunged 22% to 3.1 billion euros in Q4, missing the consensus estimate of 3.2 billion euros. The company expected to boost NSN sales, while maintaining the operating margin at the higher end of its 5-10% estimate. However, margins in Q1, 2014 are expected to come at 5% due to seasonality. Nokia Corporation said that NSN turned a profit of 15 million euros in Q4, compared to a loss of 1.4 billion euros a year ago. Adjusted operating margin of the division rose from 8.4% to 11.2% QoQ. For the full year 2013, NSN’s operating margin inched up from 5.7% to 9.7%.
Nokia’s cash reserve declines on a quarterly basis
Nokia Corporation (ADR) (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) reported the Q4 results in a different fashion with three distinct business segments: NSN, HERE maps, and Advanced Technologies (IP). The devices & services business results were included under “discontinued operations.” Overall, Nokia Corporation posted a 17% decline in its full year revenue to 12.7 billion euros, though earnings improved from a loss of €0.2 in 2012 to €0.05 per share in 2013. On a quarterly basis, its Q4 EPS came at €0.05, while net sales rose 18% from the previous quarter to €3.5 billion. However, the Finnish company’s cash reserves declined from €2.4 billion in Q3 to €2.3 billion at the end of Q4.
American shares of Nokia Corporation (ADR) (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) tanked 5.97% in pre-market trading to $7.24.