With their fourth quarter earnings showing a steady profit, Nokia is hoping to rise from the ashes with sustained momentum. Nokia CEO Stephen Elop commented on the Q4 report, saying:
“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. While the first half of 2012 was difficult for Nokia Group, in Q4 2012 we strengthened our financial position, improved our underlying operating margin in Devices & Services, introduced the HERE brand to expand our mapping and location experiences, and drove record profitability in Nokia Siemens Networks."
In a move that’s sure to ruffle more than a few investors’ feathers, Nokia announced that it would be foregoing an annual dividend payment for the previous year, citing a desperate need to cling to their existing revenue without paying out to preserve the sanctity of their previously sinking ship. Investors are hardly the only people suffering due to Nokia’s ailing finances. Last summer, the company announced that it would lay off upwards of 10,000 employees before the end of 2013 as a cost-cutting measure, while frantically reshuffling its top tier executives in a last ditch effort to avert complete collapse.
Heading into 2012, things were not looking good for Nokia. By July, their stock price had fallen to a measly $1.82 and many were hedging their bets on the company folding sooner rather than later. The company’s financial situation was dire enough that Yahoo! Finance added it to their list of ten brands predicted to meet their demise before 2012 was out. Though they’ve managed to hobble into 2013 with a year-end profit, maintaining their upward trajectory will prove to be the real challenge.