Nokia surpasses previous Q4 2012 outlook

In a report released today, Nokia reports that it has exceeded previous Q4 2012 outlook for Devices & Services and Nokia Siemens Networks.

Commenting on the preliminary Q4 financial information, Stephen Elop, Nokia CEO, said: "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."

"We focused on our priorities and as a result we sold a total of 14 million Asha smartphones and Lumia smartphones while managing our costs efficiently, and Nokia Siemens Networks delivered yet another very good quarter."

For the fourth quarter 2012, Nokia currently estimates that Devices & Services net sales  were approximately EUR 3.9 billion, with total device volumes of 86.3 million units. Multiple factors positively affected Nokia's Devices & Services businesses to a greater extent than previously expected. Preliminary information indicates that the main factors include:

• Within the Devices & Services business, better than expected financial performance in the Mobile Phones business unit and Lumia smartphones. In addition, Devices & Services recognized non-recurring IPR income of approximately EUR 50 million; and
• Lower than expected Devices & Services' operating expenses, partially due to greater than expected cost reductions under the restructuring program.

Also, Nokia and Nokia Siemens Networks currently estimates that Nokia Siemens Networks net sales in the fourth quarter 2012 were approximately EUR 4.0 billion. Multiple factors positively affected Nokia Siemens Networks' businesses to a greater extent than previously expected. Preliminary information indicates that the main factors include:

• More favorable product and regional mix in Nokia Siemens Networks. In addition, Nokia Siemens Networks 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.