Nokia's first quarter profit climbs 13 percent due to surging sales of its Oyj's low-cost mobile phones. The Finnish company with its U.S. headquarters in Irving earned $1.1 billion, or 22 cents a share, on revenue of $7.4 billion. That compares with a profit of $938 million, or 20 cents, on revenue of $7.6 billion for the same period last year.

Nokia again trumped its rivals with efficient manufacturing and distribution systems that churn out millions of phones quickly and cheaply, analysts said.

Nokia said it would add to its first-quarter market share and that mobile-phone sales would grow between 4 percent and 12 percent in the second quarter. Earnings will be between 13 cents and 16 cents a share, dragged down in part by a $380 million to $435 million charge for layoffs at Nokia Networks, the firm said.

Nokia is cutting 1,800 jobs and shuttering some projects to counter a protracted slump in sales of wireless network equipment, a business that accounts for less than 20 percent of Nokia's revenue. In 2003, equipment sales are predicted to fall 15 percent.

"With no foreseeable improvement in network infrastructure market as such, we are taking decisive action to reduce costs," said Jorma Ollila, chairman and chief executive.

By: DocMemory
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