Nokia posts loss of $832 million in Q3

Nokia posts loss of $832 million in Q3

Helsinki: World-leading mobile phone maker Nokia Corp. on Thursday reported a loss of euro559 million ($832 million) in the third quarter, taking hits from a 20 % drop in sales and a large one-time charge at its network unit.

Nokia made a profit of euro1.09 billion in the same quarter of 2008.

Net sales in the July-September period dropped to euro9.81 billion, down from euro12.2 billion in the same period last year, partly due to a shortage of components across its product portfolio, Nokia said.

The Finnish company also booked a euro908 million goodwill impairment at Nokia Siemens Networks, a joint network infrastructure unit with Siemens AG of Germany.

The mobile phone industry has been hit hard by the financial crisis, but Nokia said the market outlook is improving. It raised its 2009 forecast for mobile phone volumes, saying it now expects a 7% decline from the previous year, rather than the 10% fall it had earlier predicted.

Nokia also upgraded its estimates for the network infrastructure market, predicting a 5% fall in euro terms in 2009, compared to an earlier estimate of a 10% decline.

The company maintained its No. 1 position in global mobile phone sales, with 38% market share unchanged from the same period in 2008 and the second quarter of this year. It said it expects no growth in the fourth quarter.

Meanwhile, the average selling price of Nokia handsets was euro62 down from euro72 in the same quarter in 2008, but unchanged from the second quarter of this year.