» Nokia Reassures Investors with Solid Second-Quarter ResultsTelecommunications Industry News

Telecom News Editorials Reports Glossary

Nokia Reassures Investors with Solid Second-Quarter Results

12:45 am on July 18, 2008 | Category: Business, Cell Phones, Mobile Devices

The world’s leading handset maker, Nokia, has posted second-quarter results that are roughly in line with forecasts, while painting an upbeat picture for the rest of 2008, and reassuring investors about phone demand.

Nokia posted profits of â‚¬0.36 per share for the second quarter, excluding certain items, up from â‚¬0.32 per share in the same period a year earlier, but falling â‚¬0.01 short of average predictions. Quarterly revenue came in at â‚¬13.2 billion, beating average predictions of â‚¬12.8 billion.

Nokia shares surged 8% to close at â‚¬17.05 on the Helsinki stock exchange yesterday, driven by the company’s expectation that sales volume would grow more than 10% this year.

“Looking at the rest of the year, we are optimistic and have had good feedback about the broad range of new products we expect to sell,” Nokia Chief Executive Olli-Pekka Kallasvuo said in a statement on Thursday.

“Nokia is being able to weather reasonably well the economic problems,” which is “why you have a relief rally in the share,” commented Nomura analyst, Richard Windsor.

Shares in Nokia, which holds a 40% share of the global handset market, are still down 35% so far this year, mostly due to worries about the global economy.

Telecommunications Industry News