Finland Times

 

A customer passing a Nokia store in Helsinki. Photo Lehtikuva.

Nokia's operation profit continued to decline, but it regained a solid cash position in 2013, Finnish Mobile Communications Company Nokia said in its annual report for 2013 released on Thursday.

 

In the last quarter of 2013, Nokia gained 274 million euros (374 million U.S. dollars) of operating profits, 5 percent more than the third quarter.

 

As a mainstay of Nokia after the sale of its mobile phone business to Microsoft, NSN's operating profit was 243 million euros, which slightly decreased by 4 percent at year-on-year level, but rose dramatically by 46 percent from last quarter.

 

Nokia's cash position was strengthened last year. In the end of 2013, the company had gross cash of 9 billion euros, among which 2.8 billion was contributed by NSN, Nokia said in the report.

 

Nokia's net sale of mobile phone devices continued to decline in 2013 by 29 percent, compared to the previous year. This marks the last time that the mobile phone division, which was sold to Microsoft, is included in Nokia's reports.

 

The performances of HERE and Advance Technologies, both divisions of the new company, showed nothing exciting.

 

"The fourth quarter of 2013 was a watershed moment in Nokia's history. I am pleased with the progress we have made thus far in our strategy evaluation and excited by the opportunities ahead for each of our three continuing businesses: NSN, HERE and Advanced Technologies," commented Risto Siilasmaa, Nokia's Chairman and interim CEO.

 

After the results were released on Thursday afternoon, Nokia's share price dropped nearly 4 percent in Helsinki Stock Exchange Market.

 

The Q4 report was somewhat disappointing, as it did not answer the heated questions recently, such as its post-phone strategy, the nomination of the new CEO, as well as the final closing date of the Microsoft deal, payment of dividends and sales of Lumia phone.

 

The questions were not immediately answered, which could increase the uncertainty of the company's prospect and weaken the shareholders' confidence, said a former project manager with Nokia.

 

Challenged by rivals like Apple and Samsung, Nokia, a once global leader in the mobile phone industry, has fallen into a difficult situation since 2009.

 

After struggling for survival for over three years, Nokia decided to sell it's mobile phone business to Microsoft in September 2013. Currently Nokia's operation divisions mainly include NSN, HERE and Advanced Technologies.