Nokia reported earnings for the second quarter of 2014, and for the period from April through June, the company made non-IFRS (International Financial Reporting Standards) operating profits of 281 million EUR ($378 million USD). That is a decline from the 328 million EUR ($441 million USD) that Nokia had earned in the same quarter last year. Operating profit margins declined from 11.8% in 2013, to 11% this year. Sales declined to 2.6 billion EUR ($3.5 billion USD) for the quarter, from 2.8 billion EUR ($3.8 billion USD) last year. Excluding the effects of foreign exchange, sales actually rose 1% year-over-year.
Sales for HERE Maps rose 2% for the quarter, year-over-year, excluding currency changes. The company sold licenses for the embedded navigation system in 3.3 million new vehicles during the second quarter of 2014, up from the 2.7 million vehicles it sold licenses to in the same quarter last year.
Nokia Technologies had a great second quarter of 2014, compared to the first quarter. That took place because of the purchase of Nokia Devices and Services by Microsoft. The latter became a big licensee of Nokia's intellectual property.
At the end of the quarter, Nokia had net cash of 6.5 billion EUR ($8.7 billion USD) compared to 2.1 billion EUR ($2.8 billion USD) at the end of the first quarter of the year. The proceeds from the sale to Microsoft generated 4.8 billion EUR ($6.45 billion USD) in cash for the second quarter.
"Nokia's second quarter performance shows the strength of the company today.
In Nokia Networks, our unique operating model has allowed us to deliver strong profitability while improving our topline trend. Maintaining this balance will remain a clear priority in the second half of the year, when we expect Networks to return to year-on-year growth. Our expectations for the full year 2014 have improved and we now expect full year underlying profitability for Networks to be at or slightly above our long term target range of 5 to 10 percent.
HERE demonstrated good year-on-year growth in its automotive business, and we continue to invest to expand in this area, as well as in the enterprise and consumer markets. The licensing and innovation engine of Nokia Technologies remains very much on track. We see opportunities to expand this business with both new and existing licensees, and the Technologies team continues to increase its industry-leading patent portfolio.
This performance, along with the many conversations I have had with customers, partners, employees and others in my first quarter as CEO, gives me a high degree of confidence about our future."-Rajeev Suri, President and CEO, Nokia