Low End Mutes Nokia Loss
Corp. swung to a second successive net loss in the third quarter, but reported better-than-expected results thanks to higher sales of its low-end cell phones.
The company’s American depositary shares jumped over 8%, as results highlighted an increase in shipments of its cheaper feature phones owing to strong sales of dual-SIM handsets, which allow users to have multiple phone numbers. Nokia shipped 89.8 million feature phones in the quarter, up 8% from a year earlier.
The world’s largest cell-phone company by volume posted a net loss of €68 million ($93.6 million), beating Wall Street expectations of a €321 million loss. Sales dropped 13% to €8.98 billion.
“It’s important to emphasize we are on a journey during which we are systematically transforming our company for long term success,” Chief Executive Stephen Elop said in a call with analysts. “In [the third quarter] we started to see signs of early progress.”
In trading on the New York Stock Exchange, American depositary shares of Nokia rose 8.5% to $6.65.
Article source:
http://online.wsj.com/article/SB10001424052970204618704576642604258247330.html
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