Nokia in Q2 2012 ...
>> Nokia Corporation Q2 2012 Interim Report
Nokia - Press Release
July 19, 2012
results.nokia.com
Financial And Operating Highlights
Nokia net sales in Q2 2012 were EUR 7.5 billion, up from EUR 7.4 billion in Q1 2012
• Nokia Devices & Services Q2 net sales decreased 5% quarter-on-quarter.
• Lumia Q2 volumes increased quarter-on-quarter to 4 million units.
• Mobile Phones Q2 volumes increased quarter-on-quarter and year-on-year to 73 million units.
Nokia non-IFRS EPS in Q2 2012 of EUR -0.08, level with Q1 2012; reported EPS EUR -0.38
• Reported EPS adversely affected by non-cash valuation allowances related to deferred tax assets¹ of EUR 800 million, inventory-related allowances, and restructuring related charges.
• Devices & Services Q2 non-IFRS operating margin negative 9.1%, adversely affected by EUR 220 million of inventory-related allowances for our Lumia, Symbian and MeeGo devices. Smart Devices Q2 gross margin and contribution adversely affected by the inventory-related allowances. Q3 expected to be a challenging quarter in Smart Devices due to product transitions.
• Nokia Siemens Networks returned to non-IFRS operating profitability in Q2; restructuring progressing well and company seeing continued progress against new strategy that focuses on key markets and product segments.
¹ The majority of Devices & Services’ Finnish deferred tax assets are indefinite in nature and remain available for Nokia to use against any potential future Finnish tax liabilities.
Both gross and net cash higher year-on-year
• Nokia ended Q2 with gross cash of EUR 9.4 billion and net cash of EUR 4.2 billion.
• Net cash lower quarter-on-quarter, after EUR 742 million annual dividend payment to shareholders.
• Nokia Q2 net cash from operating activities of positive EUR 102 million, including receipt of EUR 400 million
pre-payments from existing IPR licenses.
Commenting on the Q2 results, Stephen Elop, Nokia CEO, said:
“Nokia is taking action to manage through this transition period. While Q2 was a difficult quarter, Nokia employees are demonstrating their determination to strengthen our competitiveness, improve our operating model and carefully manage our financial resources.
We shipped four million Lumia Smartphones in Q2, and we plan to provide updates to current Lumia products over time, well beyond the launch of Windows Phone 8. We believe the Windows Phone 8 launch will be an important catalyst for Lumia. During the quarter, we demonstrated stability in our feature phone business, and enhanced our competitiveness with the introduction of our first full touch Asha devices. In Location & Commerce, our business with auto-industry customers continued to grow, and we made good progress establishing our location-based platform with businesses like Yahoo!, Flickr, and Bing. We continued to strengthen our patent portfolio and filed more patents in the first half of 2012 than any previous six month period since 2007. And, we are encouraged that Nokia Siemens Networks returned to underlying operating profitability through strong execution of its focused strategy.
We are executing with urgency on our restructuring program. We are disposing of non-core assets like Vertu. We are taking the necessary steps to restructure the operations of the company, which included the announcement of a new program on June 14. Faster than anticipated, we have already negotiated the closure of the Ulm, Germany R&D site, and the negotiations about the planned closure of our factory in Salo, Finland are proceeding in a collaborative spirit.
We held our net cash resources at a steady level after adjusting for the annual dividend payment to our shareholders. While Q3 will remain difficult, it is a critical priority to return our Devices & Services business to positive operating cash flow as quickly as possible.”
Summary Financial Information
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- Eric - |
