Tuesday 3/2/21

Nokia slips to loss in the fourth quarter

Operating profit dropped to 475 million euros from 803 million euros last year and net sales decreased 5%.

Nokia Corp. (NOK) reported that its fourth-quarter net loss attributable to equity holders of the parent was 2.60 billion euros or 0.46 euros per share, compared to net income of 563 million euros or 0.10 euros per share in the same quarter last year.

The latest-quarter result was primarily hurt by a net negative fluctuation in income taxes related to the 2.9 billion euros derecognition of Finnish deferred tax assets and, to a lesser extent, lower operating profit, partially offset by a net positive fluctuation in financial income and expenses.

Non-IFRS earnings per share were 0.14 euros, compared to 0.15 euros in the previous year.

Operating profit dropped to 475 million euros from 803 million euros last year.

Net sales for the fourth-quarter decreased 5% to 6.57 billion euros from last year's 6.90 billion euros, primarily driven by lower net sales in Mobile Access, where a decline in network deployment and planning services was partially offset by growth in 5G radio access products.

No dividend for 2020

On a constant currency basis, net sales increased 1% in the latest-quarter.

The company said its board does not propose a dividend or dividend authorization for the financial year 2020. After the fourth-quarter 2021, the Board will assess the possibility of proposing a dividend distribution for the financial year 2021, taking into account the net cash position, as well as the outlook for 2022.

Looking ahead for fiscal year 2021, the company now expects net sales, adjusted for currency fluctuations, to be 20.6 billion euros to 21.8 billion euros.