 "NSN reports Q2 operating profit at 136 million Euro")
Global telecom equipment maker Nokia Solutions and Networks (NSN) today reported an operating profit of 136 million Euro (about $181.57 million) for the second quarter of 2013, on the back of reduction in operating expenses and production overheads.
The company had reported an operating loss of 225 million Euro in the corresponding period last year.
'Our fourth consecutive quarter of strong profitability is testament to excellent performance in both our mobile broadband and global services segments,' NSN Chief Executive Officer Rajeev Suri said in a statement.
The company attributed the decline in sales partially due to divestments of businesses not consistent with its strategic focus, as well as the exiting of certain customer contracts and countries.
'Excluding these two factors, our net sales in the second quarter of 2013 declined by approximately 11% due to reduced wireless infrastructure deployment activity, which affected both mobile broadband and global services,' it added.
The net sales for mobile broadband were down 10.1% while global services were down 14.7% in the reported quarter.
On geographical basis, the decline in net sales was primarily due to Asia, Middle East, Africa, Europe and Latin America.
In July this year, Nokia Corporation and Siemens AG had announced that they have entered into a definitive agreement pursuant to which Nokia acquires Siemens' entire 50% stake in NSN.
On August 7, 2013, the transaction has been completed. In accordance with this transaction, the Siemens name is being phased out from Nokia Siemens Networks' company name and branding. The new name and brand is Nokia Solutions and Networks which is wholly owned by Nokia and will continue to be consolidated by Nokia.
The company had reported an operating loss of 225 million Euro in the corresponding period last year.
'Our fourth consecutive quarter of strong profitability is testament to excellent performance in both our mobile broadband and global services segments,' NSN Chief Executive Officer Rajeev Suri said in a statement.
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The company's net sales were, however, down 14.7% to 2.758 billion Euro for the reported quarter as compared to 3.233 billion Euro in the same period last year.
The company attributed the decline in sales partially due to divestments of businesses not consistent with its strategic focus, as well as the exiting of certain customer contracts and countries.
'Excluding these two factors, our net sales in the second quarter of 2013 declined by approximately 11% due to reduced wireless infrastructure deployment activity, which affected both mobile broadband and global services,' it added.
The net sales for mobile broadband were down 10.1% while global services were down 14.7% in the reported quarter.
On geographical basis, the decline in net sales was primarily due to Asia, Middle East, Africa, Europe and Latin America.
In July this year, Nokia Corporation and Siemens AG had announced that they have entered into a definitive agreement pursuant to which Nokia acquires Siemens' entire 50% stake in NSN.
On August 7, 2013, the transaction has been completed. In accordance with this transaction, the Siemens name is being phased out from Nokia Siemens Networks' company name and branding. The new name and brand is Nokia Solutions and Networks which is wholly owned by Nokia and will continue to be consolidated by Nokia.