News Summary: Nokia halts dividend as sales shrink

AP News
Posted: Jan 24, 2013 3:22 PM

SALES SLUMP: Nokia Corp. managed a $270 million profit in the fourth quarter, but revenue fell 20 percent as it failed to make gains in the fiercely competitive smartphone market.

GRIM OUTLOOK: Sales of its flagship Lumia smartphone have been worse than expected, and weak demand for that phone and other models is weighing on the company's profitability prediction for this quarter. It expects operating margins of negative 2 percent, plus or minus four percentage points.

PAYOUT PUNCH: The struggling handset maker scrapped its 2012 dividend to save money.