HELSINKI: Nokia, once the world’s biggest mobile phone maker, yesterday posted a net profit of ¤202m ($269m) in the fourth quarter, its first quarterly profit for 18 months. The beleaguered company, which is trying to cut costs, said that it would not pay a dividend to shareholders for the first time in more than 20 years.
“We are very encouraged that our team’s execution against our business strategy has started to translate into financial results,” Chief Executive Stephen Elop said. Net sales fell 22 percent to ¤8.04bn, which was slightly lower than expected. The company sold a total of 86.3 million devices during the quarter, including 4.4 million Lumia smartphones, its new flagship product developed with Microsoft.
Apple stock plunges
NEW YORK: Apple shares plunged at the open yesterday as markets reacted to a disappointing outlook from the US tech giant despite its record quarterly profits. The shares, which had topped $700 last year, slid 11.3 percent to $455.56 as markets opened, before trading in the shares was suspended due to the sharp decline. Apple said late on Wednesday that it made a profit of $13.lbn on revenue of $54.5bn in the fiscal quarter that ended on December 29 as sales of iPhones and iPads set quarterly highs. The California-based company reported that it had sold 47.8 million iPhones and 22.9 million iPad tablet computers in the closing months of 2012.
Hyundai net up 12pc in 2012
SEOUL: Hyundai Motor reported a 12 percent increase in net profit for 2012, despite the twin challenges of a strengthening won and a global downturn that sapped demand. Consolidated net profit was 9.05 trillion won ($8.4bn) last year, compared with 8.1 trillion won in 2011, the country’s top carmaker said. Operating profit reached an annual record of 8.4 trillion won, up 5.1 percent from a year ago. Sales rose 8.6 percent to also reach an annual record of 84.4 trillion won. “Sluggish domestic sales that lasted through last year, the won’s strength and the yen’s weakness put pressure on the quarterly results,” the statement said. The company saw its fourth-quarter net profit fall 5.5 percent from a year ago to reach 1.8 trillion won. Operating profit for the October-December period also tumbled 11.7 percent to 1.8 trillion won. Hyundai, together with its smaller affiliate Kia, is the world’s fifth-largest automaker. The Seoul-based auto giant sold 4.4 million cars worldwide in 2012, up 7.0 percent from 2011, and said it planned to sell 4.6 million cars this year. Sales in China, the world’s top auto market, soared 12 percent to reach 847,000 units last year, while sales in the number two market, the United States, rose 8.9 percent. Sales in recession-hit Europe also climbed 10.2 percent to 444,000 units.
Nakheel profit up 57pc
DUBAI: Indebted Dubai property developer Nakheel posted a 57 percent rise in full-year profit, saying its earnings growth showed the emirate’s real estate sector was in recovery. House prices plunged about 60 percent from a 2008 peak as a property boom turned to bust, with Nakheel among the most high-profile corporate casualties. The government-owned developer agreed a $16bn debt restructuring in 2011 and scaled back grandiose plans, such as building a one-kilometre high tower. This has helped turn around Nakheel’s operations and it made a Dh2.02bn ($550m) profit last year, on revenue up 91 percent to Dh7.8bn. “It is proof that investor confidence is back,” Chairman Ali Rashid Lootah said, adding: “Nakheel’s strong financial performance ... is a clear sign of a recovery in Dubai’s real estate sector.” Nakheel owns and operates shopping malls in Dubai, with retail revenue up 23 percent in 2012. It did not provide figures in cash terms. The company made interest and profit payments of around Dh800m to lenders last year and has now paid around Dh10bn to various trade creditors and contractors since the start of its debt restructuring. Nakheel has cut its long-term liabilities by about Dh7.3bn and will hand over 3,000 units to customers this year. It plans to invest Dh6.5bn over the next three years on new projects.
EasyJet revenue jumps
LONDON: EasyJet posted strong growth in quarterly revenue, helped by an uplift in the number of business travellers flying with the British budget airline and fuller planes. Europe’s second-largest budget airline after Ryanair said yesterday that revenue jumped 9.2 percent to £833m ($1.2bn) in the three months to the end of December, as passenger numbers rose 6.2 percent to 13.7 million. The Luton, southern England-based company said costs per seat, excluding fuel, rose by 0.5 percent during the first quarter, and it expected its seasonal first-half loss to narrow considerably. The airline makes its profits in the second half, which includes the busy summer holiday period. “With around 80 percent of first half seats now booked, easyJet expects to contain first half loss before tax to between £50m and £75m ... this assumes a normal level of disruption in the second quarter,” said easyJet chief executive Carolyn McCall. Profits have doubled since McCall took over as chief executive in July 2010.
Agencies
