Nokia Reports Sharp Jump in Q2 Sales and Profit Margins

Nokia has pleased the markets after it reported a 28% jump in net sales to €12.6 (US$17.2) billion, along with a rise in operating margin from 15.3% to 18.7%. Net profit jumped to €2.83 (US$3.87) billion, compared to &euro1.14 (1.56) billion a year previously - although that was flattered by an one-off gain of &euro1.88 (2.57) billion from the creation of Nokia Siemens Networks

Olli-Pekka Kallasvuo, Nokia CEO commented: "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%, while operating margins in our device businesses were at their highest level in three years."

Nokia now expects industry mobile device volumes in 2007 to grow by 10% or more from the approximately 978 million units Nokia estimate for 2006. The previous estimate for the industry mobile device volume growth in 2007 was up to 10%. Nokia also continues to expect the device industry to experience value growth in 2007, but expects some decline in industry average selling prices (ASPs), primarily reflecting the increasing impact of the emerging markets and competitive factors in general.

Nokia Mobile Device Volume by Geographic Area

Nokia's average selling price in the second quarter 2007 was €90 (US$123), down from €102 (US$139) in the second quarter 2006 and up from €89 in the first quarter 2007. The lower year on year ASP in the second quarter 2007 was primarily the result of a significantly higher proportion of entry level device sales."

Posted to the site on 2nd August 2007