(Corrects operating margin forecast in the third paragraph)
HELSINKI Jan 23 Nokia reported a 22
percent year-on-year fall in sales at its network equipment
unit, the main business which it will be left with after sale of
its former flagship phones business to Microsoft for
5.4 billion euros ($7.4 billion).
Nokia said on Thursday that Nokia Solutions and Networks
(NSN) sales fell to 3.1 billion euros in the fourth quarter from
a year earlier, shy of expectations for 3.2 billion euros in a
It forecast the unit's adjusted operating margins, which
rose to 11.2 percent in the fourth quarter from 8.4 percent in
the previous quarter, to be around 5 in the January-March
NSN turned profitable in 2012 after slashing costs and
shedding unprofitable businesses, helping to offset losses in
its ailing mobile phone business.
While NSN's operating margins have been strong, analysts
have said it now needs to concentrate on winning more business
as high research and development costs in mobile broadband
technology mean bigger players have an advantage.
($1 = 0.7372 euros)
(Reporting by Ritsuko Ando; Editing by Balazs Koranyi)