Nokia posts Q1 loss of 272m euros
A man navigates with Windows 8 on a Nokia mobile phone in Paris. (AFP/Fred Dufour)
HELSINKI - Finnish mobile phone giant Nokia on Thursday posted a net loss of 272 million euros ($355 million) in the first quarter of the year, narrowing a 928 million euro loss in the same period last year.
But sales of 5.852 billion euros were down 20 percent from a year earlier, and nine percent lower than expected by analysts polled by Dow Jones Newswires.
"While operating in a highly competitive environment, Nokia is executing our strategy with urgency and managing our costs very well," chief executive Stephen Elop said in a statement.
Analysts had anticipated the company would report a net loss of 434 million euros.
Nokia's Devices and Services division reported a 32 percent revenue decline to 2.888 billion euros, after it was hit by a 21 percent volume decline in low-end mobile phones.
The number of smartphones sold fell by 49 percent, but the sales decline was partially offset by a rise in the average selling price.
Nokia has bet its future on the Lumia smartphone, which aims to rival Apple's high-end iPhone and Samsung's Galaxy. The company said a 27 percent volume rise reflected "increasing momentum" for the flagship phone.
Shares in Nokia were down 7.29 percent in midday trading on the Helsinki bourse, after falling by as much as 11 percent after the first quarter earnings were released.
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