Nokia reports dip in Q3 operating profit due to restructuring costs

Nordic Business Report, Oct 19, 2006

NORDIC BUSINESS REPORT-19 October 2006-Nokia reports dip in Q3 operating profit due to restructuring costs(C)1994-2006 M2 COMMUNICATIONS LTD http://www.m2.com

The Finnish mobile phone company Nokia (NYSE: NOK) issued its third quarter report on Thursday (19 October), posting an operating profit of EUR1,100m, as compared to EUR1,149m in the third quarter of 2005.

The result for the third quarter this year was burdened by restructuring charges of EUR128m relating to the company's CDMA business, while the result for the corresponding quarter last year was boosted by sales gains of EUR87m.

Net sales amounted to EUR10,100m, up by 20% from EUR8,403m in the third quarter last year.

Sales grew within all business areas. Mobile Phones improved by 20% to EUR5,949m, Networks improved by 16% to EUR1,804m and Multimedia improved by 14% to EUR2,092m. The smaller Enterprise Solutions business area improved by 27% to EUR257m.

Earnings per share improved to EUR0.21 from EUR0.20 in the third quarter last year.

Nokia said that it expects the mobile device market volume to be approximately 970m units in 2006.

Nokia, based in Espoo in Finland, is a global mobile phone and network equipment manufacturer. It has nearly 59,000 employees worldwide, and reported net sales of EUR34.19bn in 2005. Nokia is listed on the Helsinki, Stockholm, Frankfurt and New York stock exchanges.

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