Nokia has reported net sales of €9.27bn for the second quarter 2011, a decline of 7% compared to €10bn in the same quarter previuos year.
The Finnish mobile maker’s operating profit suffered a loss of €487m against €295m in Q2 2010.
Year-on-year, net cash from operating activities in Q2 2011 decreased due to negative net working capital impacts mainly driven by lower net sales and an unfavorable geographic mix, as well as lower underlying profitability.
The Devices & Services business witnessed 20% drop in net sales in Q2 2011 from €6.8m to €5.47m in the previous year.
The total mobile device volume decreased 20% to 88.5 million units from 111 million units in Q2 2010 and 108.5 million units in Q1 2011.
Total smartphone device sales were 16.7 million, compared with 24 million in Q2 2010 and 25.2 million in Q1 2011.
Mobile phones sales in Q2 2011 were 71.8 million against 85.8 million in Q2 2010 and 84.3 million in Q1 2011.
Devices & Services non-IFRS research and development expenses decreased 9% year-on-year and 10% sequentially due to declines in Devices & Services Other and Smart devices R&D expenses, partially offset by an increase in mobile phones R&D expenses.
The 20% year-on-year increase in Nokia Siemens Networks net sales in Q2 2011 was primarily driven by growth in both the product and services businesses in most regions, as well as the contribution from the acquired Motorola networks assets.
Nokia CEO Stephen Elop said the challenges they are facing during strategic transformation manifested in a greater than expected way in Q2 2011.
"While our Q2 results were clearly disappointing, we are executing well on the initiatives that are most important to our longer term competitiveness," Elop said.
"Some progress is already evident, and thus we are targeting to end this year with more net cash and liquid assets than at the end of Q2 2011."
