Nordic Business Report-April 20, 2006-Nokia reports first quarter operating profit of EUR1.37bn
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Finnish telecomms solutions provider Nokia reported on Thursday (20 April) an operating profit of EUR1.37bn on net sales of EUR9.51bn for the financial quarter January-March 2006.
Both operating profit and net sales for the three-month period increased, respectively from EUR1.12bn, up by 22%, and EUR7.40bn, up by 29%, as compared to the corresponding period in 2005.
Operating profit for the Mobile Phones division increased by 25% to EUR1.09bn while net sales increased by 30% to EUR5.87bn. Growth was strongest in North America, where Nokia's net sales more than doubled.
Operating profit for the Networks division decreased by 33% to EUR149m and net sales increased by 19% to EUR1.70bn.
Operating profit for the Multimedia division increased by 108% to EUR323m and net sales increased by 55% to EUR1.76bn. Operating loss for the Enterprise Solutions division increased to EUR66m from EUR6m, while net sales decreased by 39% to EUR186m.
Earnings per share (EPS) increased to EUR0.25 from EUR0.19 in January-March 2005.
The total mobile device sales amounted to 75.1 million units, an increase of 40% year-on-year. Overall market volumes for the same period reached an estimated 215 million units, representing 27% annual growth.
Nokia's estimated market share for the first quarter was 35%, up by 3 percentage points year-on-year and up by 1 percentage point from the fourth quarter of 2005.
Nokia expects industry mobile device volumes in the second quarter of 2006 to be up sequentially and Nokia's device market share to be at the same level sequentially.
Nokia continues to expect the mobile device market volume to grow 15% or more in 2006, from its estimate of some 795 million units in 2005.
One euro (EUR) is worth approximately 0.69 British pounds (GBP).
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