The last quarter of 2012 saw a reversal of fortune for Nokia, according to its latest financial results report. The Finnish company reported a $584 million operating profit on $10.7 billion in sales, up from a $754 million operating loss on $9.49 billion in sales the previous quarter.
Profits in the fourth quarter benefited from an additional 1.5 million sales in Lumia devices, for a total of 4.4 million sales. Sales of Asha smartphones outpaced the Lumia series, with 9.3 million units sold. Nokia ended the fourth quarter with an increase in gross cash of $1.5 billion and an in net cash of $1.33 billion.
Overall, however, sales of Nokia smartphones were depressed in 2012 compared to the previous year. The company sold a total of 6.6 million units in 2012 (15.9 including Asha sales), down from 19.6 million in 2011. Feature phone volumes in 2012 were down 15 percent from the previous year.
Despite declining yearly sales, Nokia executives were optimistic that the quarterly earnings represented a turnaround for a company that as recently as June had laid off 10,000 workers and closed 3 facilities. “We are very encouraged that our team’s execution against our business strategy has started to translate into financial results,” said Nokia CEO Stephen Elop. “We remain focused on moving through our transition, which includes continuing to improve our product competitiveness, accelerate the way we operate and manage our costs effectively.”