Telecom Lead Asia: Nokia said Nokia Siemens Networks is expected to clock net sales of approximately EUR 4 billion in the fourth quarter 2012.
As per Nokia Siemens’ revised estimate, the non-IFRS operating margin was between 13 and 15 percent in Q4, which compares to the previous outlook of approximately positive 8 percent, plus or minus four percentage points.
Nokia Siemens Networks’ non-IFRS operating margin includes a positive impact from non-recurring IPR income of approximately EUR 30 million.
During the fourth quarter 2012, multiple factors positively affected Nokia Siemens Networks’ businesses to a greater extent than previously expected.
These factors include: more favorable product and regional mix in Nokia Siemens. In addition, Nokia Siemens recognized non-recurring IPR income of approximately EUR 30 million; and better than expected improvement under Nokia Siemens Networks’ restructuring program to reduce operating expenses and production overheads.
Nokia Siemens Networks expects non-IFRS operating margin in the first quarter 2013 to be approximately positive 3 percent, plus or minus four percentage points.
This outlook is based on Nokia Siemens Networks’ expectations regarding a number of factors, including:
competitive industry dynamics; first quarter being a seasonally weak quarter; product and regional mix; expected continued improvement under Nokia Siemens Networks’ restructuring program; and macroeconomic environment.
The company said seasonality is expected to have a negative impact on the first quarter 2013 underlying profitability for Nokia Siemens, compared to the fourth quarter 2012.
“We are pleased that Q4 2012 was a solid quarter where we exceeded expectations and delivered underlying profitability in Devices & Services and record underlying profitability in Nokia Siemens Networks. Nokia Siemens Networks delivered yet another very good quarter,” said Stephen Elop, Nokia CEO.
