Nokia Networks posted 2 percent drop in sales to 2,877 million euros or $3.1 billion in the third quarter of 2015.
1,569 million euros (-6 percent) revenue came from Mobile Broadband and 1,307 million euros (+3 percent) from Global Services.
Nokia Networks said 24 percent revenue came from Europe, 10 percent from Middle East & Africa, 17 percent from Greater China, 27 percent from Asia Pacific, 13 percent from North America and 9 percent from Latin America.
The telecom network vendor said strong net sales growth in Greater China partially offset decreases in North America and Europe.
Gross margin of 39.5 percent was due to both global services and mobile broadband, with particular strength in the systems integration business line within global services.
“The performance at Nokia Networks was the highlight of the quarter, and allowed us to raise our full-year outlook for that business. Even if I am not pleased with the overall sales development, our strong profitability is testament to the strength of our operating model,” said Rajeev Suri, president and CEO of Nokia.
Revenue of Nokia – from Nokia Technologies and Nokia Networks — fell 2 percent to 3,036 million euros.
In a separate announcement, Nokia announced 7 billion euros program to optimize capital structure and 900 million euros synergy target, ahead of planned public exchange offer for Alcatel-Lucent securities.
How to cut costs
# Streamlining of overlapping products and services, particularly within the planned Mobile Networks business group
# Rationalization of regional and sales organizations
# Rationalization of overhead, particularly within manufacturing, supply-chain, real estate and information technology
# Reduction of central function and public company costs
Espoo, Finland-based Nokia targets to achieve approximately 900 million euros of annual operating cost synergies in full year 2018, compared to its earlier target to achieve approximately 900 million euros of operating cost synergies in full year 2019.
The company does not talk about a specific job reduction through this exercise.
Baburajan K
[email protected]
