Nokia Corp. said it posted a net income of $958.5 million, or 19 cents a share, in its third quarter results, although its mobile-phone and infrastructure sales fell.
The company said it expects its fourth-quarter earnings to be lower than anticipated because of a possible flat or slightly higher sales profile, citing the depreciation of the dollar as an explanation.
In the same period last year, the company’s net income stood at $710 million, or 15 cents per share.
Nokia’s revenue declined 5 percent to $8 billion from $8.39 billion in the year-ago period.
In its phone division, the company’s sales were flat at $6.5 billion, although it amounted to a 9-percent boost at constant currency, according to the report. Its market share rose to 39 percent in the quarter for handsets with 45.5 million units. The volume sales of mobile phones rose 15 percent from last year.
Infrastructure sales declined 21 percent to $1.39 billion, although the company said it gained market share with 23 percent of volume growth. The company, however, said it reached breakeven in that sector.
Its operating cash flow for the third quarter was $1.39 billion.
Chairman and Chief Executive Officer Jorma Ollila emphasized the company’s strategy based on its new structure, as well as the upswing in commitments from W-CDMA operators, especially in Western Europe.
“In a move to further realign Nokia’s structure with our strategy, we have made the decision to reconfigure Nokia into new highly interdependent parts from January 2004,” he said, referring to the four divisions that include Mobile Phones, Multimedia, Networks and Enterprise Solutions.
“This will allow us to focus on each business segment with the right dynamics, while at the same time achieving economy of scale .” Ollila added.
