2012 is truly a nightmare year for Nokia. The Finnish mobile phone giant closed the first quarter with a net loss of almost one billion euros (929 million). Sales amounted to 7,35 billion (-29%), while the operating loss reached 1,34 billion. Following the publication of these numbers, the company has indicated that they will be needed substantial new cuts.
“We are going through a period of great changes – commented the CEO, Stephen Elop – In the last year our new strategy has borne its first fruits, but we have had to face fiercer competition than we expected”.
Last week, Nokia had launched a profit warning: the announcement that the telephony business would be loss-making in the first two quarters of the year had made collapse of the stock on the stock exchange. However, the loss recorded far exceeds forecasts, with analysts who had estimated a loss of 554 million euros. In the same period of 2011, the company had achieved net profits of 344 million. Recently, the agency Moody's downgraded the rating by Nokia.
