Nokia has published results for the second quarter of its 2012 financial year. Total net sales reached 7.5 billion Euro (£5.9 billion), up 3% from the previous quarter but down 19% year-on-year. Overall, the company made an 826 million Euro loss for the quarter.
Mobile device shipments were down 5% year-on-year to 83.7 million, consisting of 10.2 million smart devices (down 39%) and 73.5 million other mobile phones (up 2%). Lumia smartphone sales reached 4 million units.
Stephen Elop, Nokia’s 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 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.”