Linked by Thom Holwerda on Thu 19th Apr 2012 13:20 UTC
PDAs, Cellphones, Wireless Nokia's results for the first quarter are in... And it's grim. Very grim. We're looking at a net loss of EUR 929 million, an almost complete collapse compared to last year's EUR 344 million profit. It's also almost double the loss analysts expected. Revenue dropped by 29%, too.
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After one hundred years
by ebasconp on Thu 19th Apr 2012 15:24 UTC
ebasconp
Member since:
2006-05-09

1912: Titanic sinks
2012: Another big sinking ship sinks: Nokia

Reply Score: 6

RE: After one hundred years
by tanzam75 on Thu 19th Apr 2012 16:40 in reply to "After one hundred years"
tanzam75 Member since:
2011-05-19

No, Nokia will not die in 2012.

Maybe in 2013 if things keep going downhill. Or 2014 if things hit a plateau. Or never if things turn around.

That's because Q1 2012 was the first quarter in which Nokia took a substantial loss on phones. Q4 2011 was break-even. And now the loss for Q1 2012 was EUR 219 million. That's bad, but not yet disastrous.

Hidden behind the doom-and-gloom headline number of EUR 929 million is the fact that Nokia's losses are still being driven primarily by accounting writedowns. Specifically, the EUR 772 million writedown of Nokia Siemens Networks has absolutely nothing to do with how the phone division ("Devices and Services") performed. The writedown hit the balance sheet in 2012 -- but the money was actually wasted in 2006.

Once you learn to read a financial statement, you will have a much better idea of how companies are actually doing. And you will be stunned at how clueless the financial media actually is when it comes to finances.

Reply Parent Score: 11

RE[2]: After one hundred years
by ToddB on Thu 19th Apr 2012 16:52 in reply to "RE: After one hundred years"
ToddB Member since:
2012-01-25

Thank you for explaining that, it makes a lot more sense.

Reply Parent Score: 2