DHAKA: Nokia reported first-quarter sales from continuing operations down 15 percent from a year earlier to EUR 2.664 billion.

Adjusted operating profit rose 20 percent to EUR 304 million, and the net result improved to a profit of EUR 0.03 per share from a loss of 3 cents a share a year ago.

The results exclude the handset activities sold to Microsoft, the proceeds of which boosted Nokia’s net cash position to EUR 7.1 billion.

The company also announced a special dividend of EUR 0.26 per share, plus its ordinary dividend for 2013 of EUR 0.11 per share. 

The main business Nokia Solutions and Networks recorded Q1 sales down 17 percent to EUR 2.33 billion, as equipment sales were flat and services revenue fell 25 percent.

Almost half the decline was due to divestments and decisions to exit unprofitable businesses or contracts. Cost reductions helped operating profit improve 10 percent year-on-year to EUR 216 million.

The Here navigation division also moved to an operating profit of EUR 10 million on sales down slightly to EUR 209 million, and Nokia generated another EUR 131 million in revenue from licensing. 

Nokia maintained its full-year outlook for NSN to reach the high end of its long-term target of 5-10 percent adjusted operating margin, after a result of 9.3 percent in Q1.

In addition, it now expects NSN to report annual sales growth in the second half of 2014. In Q2, the company expects a negative impact on margins from lower software sales at NSN and cash flow to be impacted by staff incentive payments. 

Nokia’s handset business, reported as discontinued operations, posted sales down 30 percent from a year earlier to EUR 1.93 billion.

The adjusted operation margin was a negative 15.9 percent versus minus 2.6 percent a year ago.

Nokia said it saw a sharp fall in feature phone sales and smartphone sales were also lower, while average selling prices continued to decline due to increased competition, reports telecompaper.com.

BDST: 2105 HRS, APR 29, 2014