tecnolà Logic Finnish it will sell the unit to develop your mobile tible to Microsoft prevalence ª one that will ¡denies ³ cio Nuclear Company APA ³ s sale will have ¡A margin increase to almost double.
Nokia introduced the third quarter results on Tuesday and said that Nokia Solutions and Networks (NSN) have an increased operating margin in the next quarter. In the third quarter the margin was 8.4% and in the last three months of the year will be 16%, according to company estimates cited by Bloomberg.
Nokia is selling its mobile phone unit to Microsoft and NSN will be the main business area of ??the Finnish company, after the operation. The increase in operating margin indicates that the strategy of downsizing is the result. The next step is to increase sales, which have been pressured by competition from companies like Huawei and Ericson.
“The goal of the margins of the NSN is certainly what is driving the action,” the Nordea Bank analyst Sami Sarkamies, told Bloomberg. “But with unit sales as below expectations, the management will have to sacrifice some profitability to increase sales,” he added. “NSN has to do much more to boost sales.”
NSN saw its turnover fall 26% in the last quarter, compared to last year, for a total of 2.59 billion euros. An amount that fell short of 2730 million for pointing the Nordea Bank analyst. The operating profit of the unit resulted in 218 million euros, compared with 240 million anticipated by Sami Sarkamies.
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