Feeds

Nokia sees across-board drop but shares jump 5 per cent

Beats expectations, says future looks rosy

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

Nokia has seen across-the-board drops in its third quarter results but beaten expectations and been awarded with a five per cent share price increase this morning.

Sales were down nearly seven per cent to £4.42 billion; pre-tax profit down 21.8 per cent to £670 million; net profit down 17.7 per cent to £477 million; and operating profit down 20.8 per cent to £670 million. However shares rocketed on the news, coming down just as fast to settle around 1400p (4.5 to 5.0 per cent up).

Nokia spent the week telling journalists and investors that the mobile phone industry was going to take off again next summer what with new phones, better, faster infrastructures and upgrades in technology - so when the results beat expectations, its shares took off.

It's been a tough year for mobile manufacturers, prompting profit warnings and a complete readjustment of the market as companies switch to a tecnhology licensing model.

As the clear leader in the market, Nokia has suffered less than most, and with it looking upbeat about the next year - sales up 20 per cent it reckons next quarter - we should see mobile stocks on the increase again. We say this of course at the same time as Ericsson shares have fallen five per cent.

The company pointed out that the shift to new mobile protocols and the state of the economy at the moment had caused postponement of network investment, but that it would pick up again soon.

Chief exec Jorma Ollila said: "Nokia, as a flexible, lean and focused organisation has done more than just weather the storm of the past several months. We succeeded in sustaining solid profitability and high cumulative operating cash flow of EUR 3.9 billion for the first nine months in an intensely competitive and volatile environment." ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.