Here's the struggling handset division Nokia is selling to Microsoft

Nokia’s handset division slumped during the fourth quarter to sales of €2.6bn (£2.1bn), down five per cent on the previous quarter and down 29 per cent year on year.

The division, that will be transferred to Microsoft during the first quarter of 2014, is now classified as a discontinued operation in Nokia’s results.

The Finnish telecoms firm reported a 22 per cent year-on-year fall in sales at its network equipment unit, the primary business that will remain after sale of its former mobile phone business to Microsoft for €5.4bn closes during the first quarter of 2014.

Nokia Solutions and Networks (NSN) sales fell to €3.1bn in the fourth quarter from a year earlier.

Overall Nokia’s results were in line with analysts expectations, the firm reported earnings per share of €0.05, from a loss of €0.20 in 2012.

“We are diligently working towards defining Nokia’s future direction. I am pleased with the progress we have made thus far in our strategy evaluation and excited by the opportunities ahead for each of our three continuing businesses,” said Nokia chairman and interim chief executive Risto Siilasmaa.