Nokia boosts profit but cuts guidance
Nokia reported a sharply higher Q1 profit but trimmed its guidance as it warned of lower handset margins.
The world’s biggest handset-maker posted net income of €349 million for the quarter, up from €122 million in the same period a year ago, on 3% higher sales of €9.52 billion.
However, earnings were below analysts' expectations of €370 million, WSJ said. Its NYSE-listed stock fell 13.11% after the result was issued, but rose 2 cents to finish at $13.01 (€9.83).
The company cut its full-year operating margin forecast for its devices-and-services segment to a range of 11%-13% - down from 12%-14% - underlining the effects of its declining share of the high-end smartphone market.
Networking business Nokia Siemens cut its operating loss from €361 million to €226 million, as net sales fell 9% to €2.7 billion due to what CEO Olli Pekka Kallasvuo called “challenging market conditions.”
The company predicted the infrastructure market would be flat this year but believed NSN could grow faster than the market.
“We continue to face tough competition with respect to the high end of our mobile device portfolio, as well as challenging market conditions on the infrastructure side,” said Kallasvuo.
Total industry handset shipments were expected to increase 10% over 2009, Nokia said.