Asia Pacific drives Nokia Siemens’ Q3 revenue up 3% at EUR 3.5 billion

Telecom Lead Europe: Thanks to 29 percent increase in sales in Asia Pacific telecom markets, Nokia Siemens Networks has posted 3 percent increase in third quarter revenue at EUR 3.5 billion from EUR 3.41 billion in the corresponding quarter last year.

Among Nokia businesses – devices, location business, Nokia Siemens Networks is the only business to show positive growth in third quarter.

Nokia Siemens Networks non-IFRS operating margin significantly improved quarter-on-quarter and year-on-year to 9.2 percent in Q3.

The increase in Nokia Siemens’ net sales was primarily due to higher sales of infrastructure equipment and slightly higher sales of services, partially offset by a decline in sales of business areas not consistent with Nokia Siemens Networks’ strategic focus.

The company reported higher net sales in Asia Pacific, notably in Japan which saw strong growth in sales of both infrastructure equipment and services.

Europe contributed 15 percent decrease in revenue.

Sales of both services and infrastructure equipment in China declined 4 percent primarily due to ongoing technology transitions which have made the timing of operator spending volatile.

The mobile broadband solutions provider is executing well on restructuring and strategy that focuses on key markets and product segments, said Stephen Elop, Nokia CEO.

In third quarter of 2012, NSN had approximately 60600 employees, a reduction of approximately 14300 compared to third quarter 2011, and approximately 2700 compared to second quarter 2012.

Nokia Siemens continues to target to reduce its non-IFRS annualized operating expenses and production overheads by EUR 1 billion by the end of 2013.

The company is looking at reducing the number of suppliers in order to further lower costs and improve quality. This is besides targeting areas such as real estate, information technology, product and service procurement costs, overall general and administrative expenses.

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