HELSINKI, Finland-Nokia Corp. experienced higher revenues and net income in all its business units during the first quarter ended March 31, reporting a slight overall revenue increase, from $2.7 billion in 1997 to $2.72 billion in the recent quarter.
First-quarter revenues at Nokia Telecommunications were up 42 percent, from $683.5 million in 1997 to $967.78 million this year. Revenue grew in all geographical areas, with the strongest growth in Europe, Nokia said. During the quarter, Nokia won contracts with Orange plc in the United Kingdom, Sonofon in Denmark, New World PCS in Hong Kong and the Shanghai Posts and Telecommunications Association in China.
Nokia Mobile Phones first-quarter revenues, fueled by strong sales in China and the transition to digital service in the United States, jumped 29 percent, Nokia said. The recent quarter saw revenue of $1.46 billion, compared with $1.13 billion last year. Nokia began volume deliveries of the Nokia 6110 and 6130 Global System for Mobile communications phones during the quarter, and also introduced the second-generation Nokia 9110 Communicator, a digital GSM handset with integrated data communications.
Nokia’s net income for the first quarter was $366.47 million, an increase of 87 percent compared with $196.41 million for the corresponding quarter of last year.
Nokia concurrently announced that it changed the responsibilities of some of its executives, and that it formed a new business group called Nokia Communications Products, combining Nokia Multimedia Network Terminals and Nokia Industrial Electronics.
Pekka Ala-Pietila was named president of the new division and also was appointed Nokia executive vice president and deputy to the company’s president and chief executive officer, Jorma Ollila. Ala-Pietila has been president of Nokia Mobile Phones since 1992.
Matti Alahuhta will take Ala-Pietila’s place as president of Nokia Mobile Phones. He has been president of Nokia Telecommunications since 1993.
Sari Baldauf will fill Alahuhta’s former position as president of Nokia Telecommunications. She has been responsible for Nokia’s Asian operations since the beginning of last year.
Olli-Pekka Kallasvuo has been appointed chief financial officer, and will continue to be responsible for Nokia’s American operations. Kallasvuo’s appointment is effective Jan. 1, 1999, and all other executive changes are effective July 1.
In related news, Nokia established a $100 million venture capital fund to finance start-up businesses and new technologies. Nokia hopes to speed up and complement its own development as well as nurture the “emerging new business ecosystem of communications” with the capital supply, said the company. Ala-Pietila, the company’s new vice president as of July 1, will take responsibility for Nokia Venture Capital Fund.
