Thursday morning, Finnish mobile devices maker Nokia Corp. (NOK) reported an 85% surge in its third-quarter profit as sales rose 28% on strong market share gains in emerging markets coupled with higher operating margin. The company's quarterly sales were also benefited by solid sales gains in its multimedia and enterprise solutions businesses. Nokia said it expects a sequential rise in industry mobile device volumes in the fourth quarter. For fiscal 2007, the company projects an increase in mobile device market volume to approximately 1.1 billion units.Q3 ResultsThe company's third-quarter profit attributable to equity holders of the parent surged to 1.56 billion euros from 845 million euros in the prior-year quarter. Earnings per share reached 0.40 euros, up 90% from 0.21 euros a year ago. For the second quarter, the company's earnings were 2.83 billion euros, or 0.72 euros per share.The company said the current-year quarter results included a restructuring charge and other one-time items of 86 million euros related to Nokia Siemens Networks and a gain of 60 million euros on real estate sale. Included in the prior-year quarter results were charges of 128 million euros primarily related to the restructuring of the CDMA business and associated asset write downs.Excluding the special items, the company's earnings per share for the third quarter of 2007 were 0.40 euros, compared to 0.23 euros last year.The company's third-quarter operating margin rose to 14.4% from 10.9% a year ago. Adjusted for the special items, operating margin came in at 14.6%, up from 12.2% in the third quarter of 2006.Nokia's third-quarter net sales totaled 12.9 billion euros, a 28% increase from 10.1 billion euros in the third quarter 2006. At constant currency, group net sales would have increased 32%. The company generated sales of 12.59 billion euros in the second quarter.During the quarter, the company shipped more than 9 million Nokia Nseries and almost 2 million Nokia Eseries devices. As per the company, average selling price for the quarter was 82 euros, down from 93 euros a year ago.During the quarter, total device volumes achieved by the company's mobile phones, multimedia and enterprise solutions business groups rose 26% year-over-year to 111.7 million units. Overall industry volume reached an estimated 286 million units, up 17% from last year. Based on Nokia's preliminary market estimate, its market share was 39% in the quarter, compared to 36% in the third quarter 2006, driven by strong gains in Europe, Middle East & Africa, Asia-Pacific and China. However, Latin America and North America demonstrated a year-over-year decline in market share during the quarter. Further, Nokia's converged device volume rose to 16.0 million units from 10.4 million units in the same quarter of 2006. Business Group SalesMobile PhonesThe company's mobile phones business reported a 3% rise in sales to 6.1 billion euros from 5.9 billion euros last year, as strong overall volume growth was partially offset by a significant decline in average selling price, due to a higher proportion of entry-level sales. On a regional basis, the segment's sales were strongest in Asia-Pacific, Middle East & Africa and China, while North America, Latin America and Europe reported sales declines. MultimediaThe company posted a 23% upside in multimedia sales to 2.6 billion euros from 2.1 billion euros in the prior-year quarter, helped by higher sales in all regions, with solid growth in Latin America and North America. High sales volumes of Nokia Nseries multimedia computers, especially the Nokia N70, Nokia N73 and Nokia N95, also contributed to the segmental sales growth. Enterprise SolutionsThe company's sales in its enterprise solutions business totaled 526 million euros, a 105% surge from 257 million euros a year ago, boosted mainly by volume growth in the segment's device business, especially the Nokia E65. As per the company, all regions except North America delivered solid sales growth in the quarter. Nokia Siemens NetworksNokia Siemens Networks, a company jointly owned by Nokia and German electronics and telecom equipment maker Siemens AG (SI), recorded quarterly sales of 3.7 billion euros, up 7% from the second quarter of 2007, which was the first quarter of operations for the joint venture.Nine-Month HighlightsFor the nine-month period, Nokia earned 5.37 billion euros, or 1.36 euros per share, compared to 3.03 billion euros, or 0.74 euros per share in the same period of last year. The company's net sales totaled 35.34 billion euros, up from 29.42 billion euros a year earlier. Others in the IndustrySwedish communication equipment manufacturer LM Ericsson Telephone Co. (ERIC) said on Tuesday that it expects a 36% fall in its third-quarter profit due to a sales shortfall in mobile network upgrades and expansions. The company also projects a 6% rise in net sales to SEK 43.5 billion from last year's SEK 41.3 billion. Ericsson is slated to release its third-quarter results on October 25, 2007.Another peer, Motorola Inc. (MOT) is also scheduled to announce its third-quarter results on October 25. Wall Street analysts project earnings of $0.04 per share, on sales of $8.81 billion. OutlookLooking ahead, Nokia expects a sequential rise in industry mobile device volumes in the fourth quarter. The company also estimates that its fourth-quarter device market share will be at the same level as in the third quarter. However, for fiscal 2007, the company projects an estimated increase of its market share, with mobile device market volume of approximately 1.1 billion units, up from approximately 978 million units estimated for 2006.Further, Nokia continues to expect very slight market growth for the mobile and fixed infrastructure and related services market in euro terms in 2007. In addition, the device industry is estimated to experience value growth in 2007, with some decline in industry average selling price, mainly reflecting the growing impact of the emerging markets and competitive factors. NOK is trading at $37.80 on the NYSE, up $1.27, or 3.48%, on a volume of 13.36 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.