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Nokia Lowers Q1 Devices & Services Forecast - Quick Facts

Nokia Corp. (NOK) currently estimates its first-quarter 2012 non-IFRS Devices & Services operating margin to be about negative 3 percent, compared with the prior expected range of "around breakeven, ranging either above or below by
approximately 2 percentage points".

Competitive industry dynamics, that negatively affected net sales in the Mobile Phones and Smart Devices business units, particularly in India, the Middle East and Africa and China; as well as Gross margin declines, particularly in the Smart Devices business unit negatively affected Nokia's Devices & Services business to a greater extent than earlier anticipated. The impact of these factors on the non-IFRS Devices & Services operating margin in the first quarter of 2012 was partially offset by a significant benefit from lower warranty costs.

In addition, the company now projects first-quarter 2012 Devices & Services net sales of 4.2 billion euros, comprised of Mobile Phones net sales of 2.3 billion euros.

For the second quarter of 2012, Nokia sees non-IFRS Devices & Services operating margin to be similar to or below the first quarter 2012 level.

by RTTNews Staff Writer

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