Nokia today posted a 13 per cent rise in net profit in the first quarter of the year to €977 million ($1.06 billion).
Nokia, the world's leading mobile phone maker, today posted a 13-per cent rise in net profit in the first quarter of the year, to €977 million ($1.06 billion).
The Finnish group, which is seen as a bellwether for the telecom sector, registered however a 3 per cent dip in sales in the period, to €6.77 billion, a decline it attributed to it ailing networks division.
The division, which last week announced it would slash 1,800 jobs, posted an operating loss of €127 million, compared to a profit of €146 million a year earlier.
The company said it planned to take a charge of €350 to 400 million during the second quarter due to the ongoing restructuring of the networks division.
In the mobile phone division, net profit exceeded the company's expectations, rising nine percent on an operating margin of 23.9 per cent, up from 22.2 per cent a year ago.
Nokia forecast a rise in mobile phone sales of four to 12 per cent in the second quarter. Shares in Nokia rose 2.5 per cent on the Helsinki stock exchange on the news, trading at €14.12.
AFP