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Journalism of Courage
Hit by hefty impairment charges and declining sales,Finnish mobile phone maker Nokia Corp plunged into a loss of 559 million euros in third quarter of this year.
In the year-ago period,the company had a net profit of 1.08 billion euros,Nokia said in a statement.
The company’s net sales decreased to 9.81 billion euros in third quarter of 2009 from 12.23 billion euros in the same period last fiscal.
Nokia Siemens Networks,a 50:50 joint venture of Nokia Corp and German Siemens AG,had suffered non-cash asset impairment charges of 908 million euros and 29 million euros for restructuring and other one time charges.
The JV firm registered net sales of 2.8 billion euros,down 21 per cent from the same period last year and also witnessed a 14 per cent decline from the second quarter.
“The demand for mobile devices improved in many markets during Q3. With the average selling price of our devices holding firm quarter-on-quarter,our higher device volumes translated into increased net sales in our devices & services business.
“Our volumes and net sales were,however,somewhat constrained by component shortages we encountered across the portfolio. Challenging competitive factors and market conditions in the infrastructure and related services business necessitated non-cash impairment charges at Nokia Siemens Networks,” Nokia CEO Olli-Pekka Kallasvuo said.
