Nokia sees sales slump

Struggling handset maker Nokia saw a 17 per cent year on year drop in net sales for full year 2013, yet managed to turn in an operating profit of €519m versus an €821m operating loss in 2012.

Net sales stood at €12.7bn for the year, €3.4bn of which was generated in Q4. The firm generated €15.4bn in sales in 2012.

The firm is in the process of selling its handset division to Microsoft for €5.44bn. The deal received shareholder approval in November 2013 with more than 99 per cent voting for the transaction. Nokia added that by the end of the year, the deal had also received the majority of regulatory approvals required for it to go ahead.

The handset business is now classified as “discontinued operations” but Nokia did report that in 4Q13 net sales from handsets stood at €2.6bn, a 29 per cent drop year on year.

The firm’s infrastructure business, Nokia Solutions and Networks, also saw a 22 per cent drop in net sales year on year in Q4, from €3.99bn to €3.1. Similarly, operating margin for the quarter fell from 14.4 per cent to 11.2 per cent.

NSN saw net sales for the quarter fall year on year in every region it operates in bar the Middle East, where it saw a two per cent increase. Its North American and Latin American operations saw the most significant drops; falling by 38 per cent and 35 per cent respectively. The firm generated €907m in Asia-Pacific and €834m in Europe during the quarter.