Nokia hit with heavy losses as slump continues

Nokia has announced a net loss of €368 million (£322 million), describing the results as "greater than expected".

Reacting to the financial results for the second quarter of 2011, Nokia CEO Stephen Elop said they were "clearly disappointing". The figures represent a big downturn for the company, which made a profit of €227 million (£199 million) for the same period last year.

Mr Elop said despite the results, the company was making "better-than expected progress" towards its "strategic goals".

He addad that the company expected "competitive pressures to continue" but that their was "clear strategy" to turn the company around.

Nokia attributed the slump to "the impact of new challenges" and said a combination of staff cuts and restructuring will see the company save €1 billion by 2013.

The announcement comes after Nokia recently announced a 'broad strategic partnership' with Microsoft to make phones that use the Windows Phone 7 operating system.