Nokia 3Q pre-tax profits expected to be down: company focuses on recovery

13 Oct 2004

Finnish equipment manufacturer Nokia is expected to post a pre-tax profit of EUR843 million for the three months to 30 September, down 31% on the EUR1.22 billion recorded last year, according to a poll of 37 analysts. Nonetheless, the company is tipped to return earnings at the higher end of its estimates following a recent surge in its market share. In the first half of 2004 Nokia failed to see the demand for clamshell mobile phones and lost market share to rivals. Since then however, the world’s largest handset maker has redressed the problem by lowering the prices on some models to help regain market share. This strategy appears to be paying off, with Nokia benefiting from higher sales, but questions remain over its ability to sustain margins as a result of its efforts to bolster turnover. Nokia reports tomorrow.