Nokia profits down in first quarter
A 62 percent decrease in operating profit reported by the Nokia Group has been attributed to Nokia Mobile Phones.
The Finnish manufacturer’s handset division struggled with low phone prices and slow sales during its first quarter. Sales of mobile handsets were only up 10 percent; Nokia Mobile Phones recorded a slight operating loss.
Low phone prices previously affected results for manufacturers Motorola Inc. and L.M. Ericsson as well, although recent reports from those two companies indicate recovery.
Even though Nokia had forecast lower operating profit and lower net sales growth, the first-quarter report sent Nokia’s most-traded A share down 6 percent; it recovered after Nokia’s chief executive Jorma Ollila predicted a possible rebound during this year’s second half, according to international reports.
NOTABLE QUOTE
“America is slam-dunking the world in the information revolution, and this presents us with an unprecedented opportunity for economic growth and for exporting American ideas.”
-Mike Oxley (R-Ohio), chairman of the House subcommittee overseeing international trade. Story on Page 5.
