World’s No 1 mobile phone maker, Nokia Corp., posted a loss of euro368 million in the second quarter of the financial year. The profit of the company was down from euro227 million in the same period last year. Revenues of Nokia declined 7% to euro9.3 billion from euro10.0 billion the previous year.
The main reason behind the loss was decline in sale, which was unexpected for the company. CEO of Nokia, Stephen Elop said, “The challenges we are facing during our strategic transformation manifested in a greater than expected way" during the quarter”.
The company has revealed that it is planning to speed up its cost-cutting plan to surpass the previously targeted savings of euro1 billion in 2013. These reductions would be attained through cuts in staff, outsourced professionals and facility costs and improving the efficiency of the operations.
Even after posting the losses, the shares of the company were up 4.6% at euro4.26 on the Helsinki Stock Exchange.
The global market share of Nokia dropped below 30% earlier this year for the first time in more than a decade, whereas it share prices have fallen nearly 50% this year.