The restructuring efforts of the struggling Nokia seemed have paid off with the Finnish handset giant reporting a net profit of 255 million euro in quarter 4  2012.  The net sales, however, declined nearly 20 per cent to 8.04 billion euro in the 2012 December quarter.

 Nokia said that the group achieved underlying operating profitability, with Q4 non-IFRS operating margin of 7.9%.

“ Nokia Group strengthened its net cash position by approximately EUR 800 million sequentially, of which approximately EUR 650 million was generated by Nokia Siemens Networks” it said in statement.

"We are very encouraged that our team's execution against our business strategy has started to translate into financial results. Most notably we are pleased that Nokia Group reached underlying operating profitability in the fourth quarter and for the full year 2012”, said Stephen Elop, Nokia CEO.

He said that while the first half of 2012 was difficult for Nokia Group, in Q4 2012 the company  strengthened its financial position, improved its underlying operating margin in Devices & Services, introduced the HERE brand to expand its mapping and location experiences, and drove record profitability in Nokia Siemens Networks.

 Devices & Services Q4 non-IFRS operating margin improved quarter-on-quarter to 1.3%, due to an increase in gross margin as well as a decrease in operating expenses.

Nokia Siemens Networks non-IFRS operating margin improved quarter-on-quarter and year-on-year to a 14.4% in Q4, the highest level of underlying operating profitability since its formation in April 2007, primarily due to an increase in gross margin.

Nokia Group full year 2012 non-IFRS EPS was EUR -0.17; reported EPS was EUR -0.84.  Nokia Group achieveed underlying operating profitability, with full year 2012 non-IFRS operating margin of 0.4%.

 Nokia Group ends 2012 with a strong balance sheet and solid cash position. Gross cash was EUR 9.9 billion and net cash was EUR 4.4 billion, after incurring cash outflows related to restructuring of approximately EUR 1.5 billion and dividend payment of approximately EUR 750 million.

“To ensure strategic flexibility, the Nokia Board of Directors will propose that no dividend payment will be made for 2012 (EUR 0.20 per share for 2011). Nokia's Q4 financial performance combined with this dividend proposal further solidifies the company's strong liquidity position”, it said.

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