Nokia Q4 Profit Slumps 69% – Warns of Difficult 2009
Nokia has reported that its fourth-quarter sales dropped by 19% to €12.7 billion (US$16.4 billion) and profits slumped by a huge 69% to €576 million (US$744 million), compared to a profit of €1.84 billion (US$2.4 billion) a year ago. Analysts polled by Bloomberg News had estimated profit of €975 million on sales of €13.1 billion.Nokia’ mobile phone sales were down 15% year on year at 113.1 million units – and down 4% sequentially.
Nokia CEO, Olli-Pekka Kallasvuo said “In recent weeks, the macroeconomic environment has deteriorated rapidly, with even weaker consumer confidence, unprecedented currency volatility and credit tightness continuing to impact the mobile communications industry. We are taking action to reduce overall costs and to preserve our strong capital structure. This is clearly our top priority in the current economic environment. However, it is important for Nokia to continue investing at the proper pace in future growth. We believe Nokia has a tremendous opportunity to capture value as the Internet services market evolves and grows,”The company warned that more limited availability of credit also reduced the purchasing ability of some its trade customers.
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