Nokia shows wide strength — MobileMonday Global: Industry News

^{US market and NSN dark spots} Nokia shows wide strength

Olli-Pekka Kallasvuo has little to show for his efforts in the US market.

5 Aug 2007 at 17:58 GMT Timo Poropudas

Nokia reported strong financial and market share numbers for the second quarter, with a two-point gain in global market share to hold 38 percent of the world market for mobile phones at the end of the quarter.

Nokia’s revenue showed a 28 percent increase over the year-ago quarter. Operating profit jumped 57 percent jump over the year-ago quarter. Net profit increased was 148 percent increase over the year-ago quarter. Handset shipments reached nearly 101 million units, up 29 percent from the year-ago quarter.

Nokia posted double-digit, year-on-year gains in nearly every region of the world—from 21 percent in Latin America to 36 percent in China/Asia to nearly 37 percent in the Middle East and Africa—the vendor posted a 21 percent decline in shipments to the United States.

"Nokia continued to grow in the second quarter thanks to an excellent performance from our device businesses. Nokia's share of the global device market improved to an estimated 38 percent, while operating margins in our device businesses were at their highest level in three years,” commented Nokia CEO AOlli-Pekka Kallasvuo.

Nokia said in its press release that it now has some major hit products across what is already the industry's broadest product portfolio.

“I am particularly encouraged by the success of a number of recently launched higher end devices, which made a strong contribution to increased profitability,” Kallasvuo said.

Nokia Siemens Networks had a challenging quarter, according to Kallasvuo. “Both net sales and margins were weak and these adverse developments require decisive action. Accordingly, Nokia and Nokia Siemens Networks are accelerating and increasing the new company's annual cost synergies target.”

NOKIA IN THE SECOND QUARTER 2007
EUR million	Q2/2007	Q2/2006	Change
Net sales	12 587	9 813	28 %
Mobile Phones	5 931	5 875	1 %
Multimedia	2 680	1 891	42 %
Enterprise Solutions	549	283	94 %
Nokia Siemens Networks	3 438	1 766
Operating profit	2 359	1 502	57 %
Mobile Phones	1 252	979	28 %
Multimedia	561	304	85 %
Enterprise Solutions	99	-63
Nokia Siemens Networks ***	-1 266	399
Group Common Functions	1 713	-117
Operating margin (%)	18.70 %	15.30 %
Mobile Phones (%)	21.10 %	16.70 %
Multimedia (%)	20.90 %	16.10 %
Enterprise Solutions (%)	18.00 %	-22.30 %
Nokia Siemens Networks (%) ***	-36.80 %	22.60 %
Net profit	2 828	1 140	148 %
EPS, EUR
Basic	0.72	0.28	157 %
Diluted	0.72	0.18	157 %