NSN is to be known as Networks and will operate under the Nokia Group brand, the company announced following the closure of the deal to sell its Devices and Services division to Microsoft on 29 April 2014. As widely tipped, NSN CEO Rajeev Suri (pictured) takes over the leadership of the rump of Nokia as president and CEO of Nokia Group.
Networks also reported its Q1 2014 results, which saw sales decline year on year by 14.3% to Euro 2.3bn (£1.8bn) and down 25% on the previous quarter. The decline was partially attributed to divestment of non-core businesses and withdrawal from some contracts and countries.
Excluding these factors, net sales were down 10%, primarily due to lower sales in Global Services, which were hit by a reduction in network implementation and maintenance activity.
Net sales by geographic area saw a 7.9% decline in Asia, Middle East and Africa; a 14.5% decline in Europe and Latin America and a 34.7% decline in North America, largely due to the slowdown in LTE roll outs.
Net profit for Q1 2014 was Euro 124m (£101m) – a marked improvement on the Euro 136m (£111m) loss for the same quarter in 2013, but down 27.9% on the previous quarter of Q4 2013. Networks said the year on year improvement was due to lower restructuring related charges and improved profitability, while the sequential decline was primarily due to lower operating profit.
Network’s transformation and restructuring programme racked up cumulative charges of Euro 1.8bn (£1.4bn) as of 31 March 2014. The total is expected to reach Euro 1.9bn (£1.5bn) by the end of 2014.
Networks had approximately 48,500 employees at the end of Q1 2014, a reduction of 8,200 compared with the end of Q1 2013.