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Price pressure pulls down Nokia's profit

Posted: 24 Apr 2007 ?? ?Print Version ?Bookmark and Share

Keywords:Nokia net profit? quarter sales hike? Nokia CEO Kallasvuo?

Nokia's net profit declined in the first quarter despite a 4 percent hike in sales. For the next quarter, CEO Olli-Pekka Kallasvuo expects volumes to rise slightly.

Sales increased 4 percent to about $13.3 billion despite a decline in its handset business by 5 percent to $7.88 billion. The weakness in its handset business was set off by strong multimedia business, which rose 28 percent to about $3.06 billion. Sales for Enterprise solutions rose even 75 percent, albeit from a much lower level of $253 million.

Net profit declined 7 percent to $1.33 billion. Earnings per share remained constantly at 34 cents.

For the period ahead, Kallasvuo said he expects volumes to grow slightly, with the market share to remain at the present level of 36 percent for the second quarter and slightly up for the entire year. Also for the year, the company sees the market to grow about 10 percent in terms of volumes. The impact of emerging markets, however, will cause the ASPs to decline. The market for mobile and fixed line infrastructure is also expected to grow slightly.

- Christoph Hammerschmidt
EE Times Europe

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