Nokia Finally Operating in the Black, Posting $585 Million Q4 Profit

nokia old logoThe financial situation for Nokia has been bleak since its mobile empire was challenged by Apple’s iPhone and Android smartphones. Nokia has been losing money quarterly since 2010, with its largest operating loss of $1.2 billion in Q4 2011. Fortunately, things are starting to turn around for the Helsinki company.

Nokia posted a $585 million net income for its fourth quarter of 2012. Some of that revenue was helped by steep jobs cut and sales of major assets. Last month, the  handset maker sold their Finland headquarter for $220 million. Nokia is still planning to outsource and reduce more of their IT jobs in further cost reduction plan.

For the first time in 143 years of its existence, Nokia is stopping its dividend payout to shareholders. The move will save the company cash outflow and help preserve its dwindled cash reserves. 2013 is predicted to be a positive operating year for Nokia, according to a Bloomberg analyst.

As previously announced, Nokia sold 4.4 million of their Lumia smartphones in Q4, which includes the Lumia 920, 820, and 610 models. Most of their smartphone sales however are from their Asha series, targeting growing economies. They’ve sold 9.3 million Asha smartphones for Q4. Their Symbian smartphone is finally showing signs of receding with only 2.2 million units sold.

[Nokia's Press Release via Bloomberg]

Post a response / What do you think?