Hard times continue as Nokia sees Q2 2012 sales drop 19% to 7.54 million euros
Handset division hit harder, down 26%
Nokia (NYSE: NOK) has published its Q2 2012 financials, for the three month period ending June 30.
Net sales were €7.54 billion (around $9.5 billion), down 19 percent year-on-year.
In terms of the key Devices & Service business unit, net sales were $4 billion ($5.1 billion), down 26 percent year-on-year.
Overall, Nokia made an operating loss of €826 million ($1.0 billion), compared to a loss of €487 million ($620 million) 12 months ago.
However, the company pointed out that this figure was adversely affected by deferred tax assets of €800 million, plus inventory allowance and restructuring charges. However, some of this total can be set against future Finnish tax liabilities.
It says it expects Q3 to be "challenging", as it pushes to return the handset business to positive operating cash flow.Calm in the storm
Yet CEO Stephen Elop remained bullish about the company's longterm strategy.
"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," he stated.
He also pointed to the potential of Windows Phone 8, due in October.
"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," he said.
Overall, Nokia sold 10.2 million smartphones (down 39% year-on-year) and 73.5 million feature phones (up 2 percent)Glimmers
Other (small) positive signs for the company include the return to underlying operational profit for the Nokia Siemens Networks division, and faster than expected restructuring.
Nokia is selling off its luxury Vertu brand, has shut down its Ulm, Germany R&D facility, and will soon have closed its Finnish factory in Salo.
The company ended the quarter with €4.2 billion ($5.3 billion) in net cash and liquid assets, down €675 million ($855 million) from three months ago.
[source: Nokia (PDF)]