Feeds

Nokia Q2 profits slide on flat revenues

Handset shipments on the rise

  • alert
  • submit to reddit

Build a business case: developing custom apps

Nokia saw its profits tumble 27 per cent during its second quarter over the same period last year on flat sales, the company said today.

Net sales hit €7.02 billion ($7.85 billion), up just 1.1 per cent from Q2 2002's €6.94 billion.

Operating profit totalled €858 million down 31.9 per cent on the €1.26 billion it reported this time last year. Q2 2003's figure includes a one-off charge of €399 million thanks to the restructuring of Nokia Networks, its infrastructure business; exclude this and other items and Nokia's income falls to €664 million, down 26.6 per cent on Q2 2002's equivalent figure, €905 million.

These are pro forma figures - reported figures show similar declines year on year. Q2 2003 reported operating profit was €818 million, net profit was €624 million.

Mobile phone shipments rose 14 per cent, Nokia said, but the weak US dollar and a slight shift toward lower-end products in new market territories, leading to an increase in sales of just two per cent year-on-year to €5.5 billion.

Strong European sales were balanced by weaker sales in Asia Pacific and a big drop in the company's US shipments.

The mobile phone business also provided Nokia with its income. Its Networks division would have delivered a small contribution, the company admitted, but that was more than wiped out by the restructuring charge, relating to the cost of cutting staff within the division and shutting down R&D projects.

Nokia reckons it now has around 39 per cent of the handset market, with its shipments growing faster than overall worldwide phone shipments - 14 per cent v. 11 per cent.

Looking ahead, Nokia expects handset shipments to continue increasing, by well over ten per cent, it forecasts. But sales will be flat or slightly down quarter-on-quarter - again thanks to the weak US dollar. Nokia Networks will show a loss next quarter, thanks to ongoing declining sales - likely to be down 15-20 per cent on Q3 2002. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
UK fuzz want PINCODES on ALL mobile phones
Met Police calls for mandatory passwords on all new mobes
Canadian ISP Shaw falls over with 'routing' sickness
How sure are you of cloud computing now?
Don't call it throttling: Ericsson 'priority' tech gives users their own slice of spectrum
Actually it's a nifty trick - at least you'll pay for what you get
Three floats Jolla in Hong Kong: Says Sailfish is '3rd option'
Network throws hat into ring with Linux-powered handsets
Fifteen zero days found in hacker router comp romp
Four routers rooted in SOHOpelessly Broken challenge
New Sprint CEO says he will lower axe on staff – but prices come first
'Very disruptive' new rates to be revealed next week
US TV stations bowl sueball directly at FCC's spectrum mega-sale
Broadcasters upset about coverage and cost as they shift up and down the dials
PwC says US biz lagging in Internet of Things
Grass is greener in Asia, say the sensors
Ofcom sees RISE OF THE MACHINE-to-machine cell comms
Study spots 9% growth in IoT m2m mobile data connections
O2 vs Vodafone: Mobe firms grab for GCHQ, gov.uk security badge
No, the spooks love US best, say rival firms
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.