A positive note in Nokia’s report was the performance of its network operations, Nokia Siemens Networks, a joint-venture with Germany’s Siemens AG. It had been lossmaking for years, but now showed signs of improvement, mainly because of restructuring measures including substantial job cuts.
Elop said the division “drove record profitability” during the quarter, with operating profit surging to (EURO)251 million from (EURO)67 million the previous year as revenue grew 5 percent to (EURO)4 billion.
Nokia, which has been struggling to cut costs by (EURO)1.6 billion by the end of this year, announced 10,000 job cuts in June and closed down research and development facilities globally as well as its main manufacturing plant in Salo, Finland _ the company’s last assembly plant in Europe.
At the end of 2012, Nokia employed a total of 98,000 people _ down from 130,000 a year earlier.
Associated Press writer Jari Tanner contributed to this report from Tallinn, Estonia.