Thursday, April 17, 2008
First quarter profits at Nokia were up 25 percent on higher handset sales in Asia and Africa, but these were still lower than analysts' expectations.
And a downbeat forecast for the next quarter hit the Finnish group's share price.
Net income rose to Euros 1.22 billion ($1.95 billion), from Euros 979 million a year earlier, an increase of 25 percent.
Sales in the quarter were Euros 12.66 billion, up by 28 percent from the same quarter of 2007. Sales of the devices and services group were up by 13 percent to Euros 9.3 billion, while sales at the networks division reached Euros 3.4 billion.
The company saw sales of mobile phones reach 115.5 million during the quarter, a 27 percent increase from the same period last year, representing a 40 percent share of the global market. However sales in North America were down significantly, with the strongest growth seen in Latin America followed by the Asia Pacific region.
Chief executive Olli-Pekka Kallasvuo said volumes of handsets are expected to increase sequentially in the second quarter of 2008. "While we will not have major new products shipping in the second quarter, we expect a number of new products to be shipping, and to have a positive impact on our results in the second half of 2008," he added.
The 26 percent increase in unit shipments last year was helped by models such as the N95 with satellite navigation and the thin 6300 and 6500 series in the high- and mid-priced segments, and by the 1100 and 1200 series in the entry market.
Average selling price (ASP) in the first quarter 2008 was Euro 79, down from Euro 89 in the first quarter 2007 and down from Euro 83 in the fourth quarter 2007. The lower year on year ASP was primarily due to a higher proportion of lower priced products and to a lesser extent the negative impact of the weaker US dollar.
By: DocMemory
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