NSN reports progress, losses

Within Nokia's fourth quarter results on Thursday, a progress report on Nokia Siemens Networks (NSN) had mixed news. Nokia said the joint venture with Siemens had achieved targeted cost savings of $2.5 billion set for 2008, but the entity posted $179 million in losses in the last quarter of 2008.

NSN wrote off $152 million of intangible asset amortization and other accounting related expenses from the formation of the company in 2007, a combination of Nokia's network infrastructure unit with Siemens. 

In the final quarter of 2008, the joint venture posted sales of $5.5 billion, a 5 percent decrease when compared to 4Q07. Business declined 20 percent in Europe, more than 18 percent in North America and 17 percent in China.  However, the company's figures were an improvement from 3Q08, when NSN posted sales of $4.5 billion.

Overall in 2008, net sales for NSN increased 14 percent from 2007, a total of $19.8 billion. Overall operating loss was 2008 was $398 million, a substantial improvement from 2007 losses of $1.6 billion.

NSN expects to continue to hold its place in the infrastructure market in 2009; it only trails Ericsson.

For more:
- RCR Wireless analyzes NSN results. Article.

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