Telecom Lead Europe: Nokia Siemens Networks has
contributed positively to Nokia’s cash flow in Q1 2012 due to net working
capital improvements.
This was despite Nokia Siemens having a preliminarily
estimated non-IFRS operating margin of approximately negative 5 percent in the
first quarter 2012, in line with the previously provided outlook.
Nokia Siemens sales up 11 percent to EUR 14.04 billion in 2011
In 2011, Nokia Siemens Networks had registered 11 percent
increase in 2011 sales at EUR 14.04 billion in 2011 compared with EUR 12.66
billion in 2010. Operating loss in 2011 was EUR 300 million as compared with
EUR 686 million in the previous year. Q4 2011 operating profit was EUR 67
million as against EUR 1 million in Q4 2010.
Nokia, in its update for Q1 2012, said it will accelerate
planned cost reductions and will pursue additional significant structural
actions if and when necessary.
“We are continuing to increase the clock speed of
the company. The change is tangible, and we are proud of the way Nokia
employees are quickly responding to the needs of consumers and partners,”
said Stephen Elop, president and CEO of Nokia.
Nokia estimates that in Q1 2012, the company’s gross cash
and other liquid assets were approximately EUR 9.8 billion, and Nokia’s net
cash and other liquid assets were approximately EUR 4.9 billion. The sequential
decline in net cash and other liquid assets was driven by devices &
Services, which experienced unfavorable and non-recurring net working capital
changes as well as operating losses.
Nokia estimates that its non-IFRS Devices & Services
operating margin in the first quarter 2012 was approximately negative 3
percent, compared to the previously expected range of around breakeven, ranging
either above or below by approximately 2 percentage points primarily due to the
factors noted above.
Nokia will provide full first quarter results and more
details when it reports its first quarter 2012 results on April 19, 2012.
editor@telecomlead.com
