Nokia reports strong Q2 results

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Nokia today unveiled its second quarter results, with sales growth of 28 per cent from €9.8 billion to €12.6 billion, confirming market predictions that the mobile giant would benefit from its competitors' market struggles.

The company sold more than 100 million phones during the quarter, an 11 per cent increase on the previous quarter and up 29 per cent year-on-year, helping it to snaffle a 38 per cent share of the market.

Its multimedia and enterprise products also proved successful with second quarter sales up 42 per cent and 94 per cent respectively.

"Nokia continued to grow in the second quarter thanks to an excellent performance from our device businesses. Nokia's share of the global device market improved to an estimated 38 per cent, while operating margins in our device businesses were at their highest level in three years. Diluted EPS was up 39 per cent year on year, excluding special items. Nokia now has some major hit products across what is already the industry's broadest product portfolio. I am particularly encouraged by the success of a number of recently launched higher end devices, which made a strong contribution to increased profitability," said Olli-Pekka Kallasvuo, Nokia's chief executive.

"Nokia Siemens Networks had a challenging quarter. Both net sales and margins were weak and these adverse developments require decisive action. Accordingly, Nokia and Nokia Siemens Networks are accelerating and increasing the new company's annual cost synergies target. Nokia Siemens Networks must also ensure that the company is positioned for success and leadership in the fast changing infrastructure market."

Nokia's target date for achieving its €1.5 billion in cost savings is being brought forward to next year rather than 2010. The company is planning a further €500 million in cost savinges and economies of scale.

Following the bumper quarter, Nokia now expects mobile device volumes for this year to grow by at least 10 per cent on last year's figure of 978 million units.

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