Nokia’s third quarter profits drop

HELSINKI – Top mobile phone maker Nokia reported a drop in third-quarter earnings yesterday after cutting handset prices to win back market share and predicted earnings for the key fourth quarter would also fall.

The Finnish firm said fourth-quarter earnings would be in the range of 0,16-0,18 euros per share, down from 0,25 euros a year ago and compared with the average and median market forecast of 0,18 euros given in a Reuters poll of 28 analysts. “We expect continued strong growth in global mobile device market volumes in the fourth quarter, even as compared with the remarkable final quarter in 2003,” Chief Executive Jorma Ollila said in a statement.The company has had a turbulent year, saying in April it was losing market share due to gaps in its product range but it upgraded its third-quarter earnings forecast last month to 0,11-0,13 euros a share from a previous 0,08-0,10 euros on the back of strong sales volumes and tighter cost controls.It has managed to stem its market share losses by cutting prices on some phone models to bolster sales until its promised new range of handsets get to the market.Nokia’s third-quarter earnings fell to 0,14 euros per share, above the average market forecast of 0,13 euros but down on the 0,17 euros a share made in the same period last year.Sales rose to 6,94 billion euros (N$55,52 billion) from a year ago, above the average forecast of 6,86 billion euros given by analysts as lower handset revenues were offset by rising demand in its smaller network equipment business.Nokia shares were lower after the result, off 1,8 per cent at 11,21 euros and slightly underperforming the European Dow Jones Stoxx technology index.The stock has added seven per cent since Nokia raised its earnings outlook on Sept.9 but remains down 18 per cent for the year, lagging the sector index by some 15 per cent.Earlier on Thursday smaller rival Sony Ericsson reported a tripling in profits in the quarter as it gained market share with its range of new camera phones which also increased its average selling price to 157 euros per handset from 145 euros in the second quarter.-Nampa-Reuters”We expect continued strong growth in global mobile device market volumes in the fourth quarter, even as compared with the remarkable final quarter in 2003,” Chief Executive Jorma Ollila said in a statement.The company has had a turbulent year, saying in April it was losing market share due to gaps in its product range but it upgraded its third-quarter earnings forecast last month to 0,11-0,13 euros a share from a previous 0,08-0,10 euros on the back of strong sales volumes and tighter cost controls.It has managed to stem its market share losses by cutting prices on some phone models to bolster sales until its promised new range of handsets get to the market.Nokia’s third-quarter earnings fell to 0,14 euros per share, above the average market forecast of 0,13 euros but down on the 0,17 euros a share made in the same period last year.Sales rose to 6,94 billion euros (N$55,52 billion) from a year ago, above the average forecast of 6,86 billion euros given by analysts as lower handset revenues were offset by rising demand in its smaller network equipment business.Nokia shares were lower after the result, off 1,8 per cent at 11,21 euros and slightly underperforming the European Dow Jones Stoxx technology index.The stock has added seven per cent since Nokia raised its earnings outlook on Sept.9 but remains down 18 per cent for the year, lagging the sector index by some 15 per cent.Earlier on Thursday smaller rival Sony Ericsson reported a tripling in profits in the quarter as it gained market share with its range of new camera phones which also increased its average selling price to 157 euros per handset from 145 euros in the second quarter.-Nampa-Reuters