Nokia raises full year sales forecast after solid Q3 results

24 Oct 2005

Finnish handset manufacturer Nokia reported an 18% rise in net sales to EUR8.403 billion for its fiscal third quarter to 30 September on the back of strong sales, and revised upwards its forecast for full year sales to 780 million units. Net sales of mobile phones increased by 15% to EUR5.203 billion in the three month period while operating profit rose 4% to EUR880 million. The increases helped drive overall group operating profit which climbed by 19% to EUR1.149 billion. Elsewhere, net sales at its Multimedia business surged 55% to EUR1.447 billion and operating profit leapt 163% to EUR245 million. Turnover at Enterprise Solutions climbed 16% to EUR203 million, although the unit reported losses of EUR37 million. Net sales at Networks climbed marginally to EUR1.555 billion, but this could not stop a 20% decrease in operating profit to EUR157 million.

At the end of the third quarter Nokia retained a 33% share of the mobile phone market. In Asia, the group increased its share – thanks in part to an 85% rise in sales in China and strong growth in India. However, in North America and Latin America, Nokia’s market share decreased.