Nokia Siemens ends on a profit
Nokia Siemens Networks may now be Nokia Solutions and Networks (NSN), but the former company went out with a flourish by turning a profit in the second quarter.
The business overturned a net loss of €260 million in 2Q12 with a profit of €15 million in 2Q13, despite a 14.3% drop in sales year on year. Although the firm accounts for the fall by pointing to the sale of non-core businesses, and its exit from customer contracts and countries, it notes sales would still have fallen 11% year on year without those factors.
Despite the lower sales, the firm’s gross margin grew 12.2 percentage points year on year to 38.4%, and operating expenses fell 18.4% to €820 million.
Rajeev Suri, chief executive of NSN, says the firm is “very well positioned to build on its leadership position in LTE,” following the quarter.
Despite Suri’s optimism, recent reports suggest his bid to step up efforts to cut operating costs could see a further 8,500 staff laid off now Nokia’s buyout of the firm is complete.
If approved, the plan would see NSN’s workforce cut to 42,000 in the next 18 months, and add to 20,000 job losses in the past two years, Bloomberg reports.