Nokia reports surge in profits
Nokia, the world’s largest mobile handset maker, gave a boost to the telecoms sector today after reporting a surge in third-quarter profits and sales.
The Finnish group said strong results in its key handset division offset continued weakness in its networks business.
Nokia reported pre-tax profits of €885m for the three months to September 30, compared with €281m in the same period last year.
In addition sales increased 2% to €7.2bn.
Nokia said it was being boosted by consumers upgrading to buy products such as handsets with colour screens and multimedia phones.
Chief executive Jorma Ollila said: “Colour and multimedia are adding excitement to mobile communications.
“The handset market is entering a new growth period spurred by the arrival of an increasing number of mass volume products with colour and multimedia messaging capability.”
However the group’s networks division was hit by operators holding back on new networks, and sales in the arm slid 7% to €1.55bn.
Tough times in the industry have seen many mobile firms slash staff and Nokia, which employs around 54,000 staff worldwide, two months ago announced plans to reduce staff by around 900.
Analysts said overall the figures were better than expected and shares surged more than 11% to €16.60 in early afternoon trading on the Helsinki Stock Exchange.
The upbeat figures helped fuel rises in other telecoms stocks on the London Stock Exchange today, with Vodafone, BT and mmO2 all climbing.
But the announcement comes just a day after US mobile and semiconductor giant Motorola revised down its fourth-quarter sales forecasts.
Shares slid to a new 10-year low after the US group, which employs more than 5,000 staff in the UK, said it was being hit by weaker demand.
