Nokia Siemens posts Q3 loss of €116 mn
21 Oct 2010
Nokia's telecom gear venture Nokia Siemens Networks posted a third-quarter operating loss yesterday as against a small profit projected for the period.
The 50-50 Nokia Siemens venture has struggled to keep out of the red since its 2007 start with falling operator spending and fierce pricing from Asian rivals Huawei and ZTE.
The unit reported an operating loss of € 116 million, down from a loss of 53 million a year earlier.
Third quarter sales were up 7 per cent from a year ago to €2.94 billion, beating analysts' average forecast of €2.91 billion.
Meanwhile, its rival, Sweden's Ericsson is expected to post a flat third-quarter core profit when it reports its earnings tomorrow.
Nokia Siemens Networks, a joint venture between Siemens and Nokia's Network Business Group, is the second largest telecom equipment supplier in the world.
Officially launched at the 3GSM World Congress in Barcelona in February 2007, the company commenced full operations on 1 April 2007. Nokia Siemens Networks is head-quartered in Espoo, Greater Helsinki, Finland, with the West-South Europe headquarters and three of its five divisions based in Munich, Germany. The company operates in some 150 countries serving over 600 customers.
The company acquired the wireless-network equipment division of Motorola, on 19 July 2010. The acquisition is to be completed by the end of the year.