Nokia Corp. announced the financial results of the second quarter of 2008 and updated its forecasts, after which its shares took off at 8% upwards.
"In the future we will show the nearest half growth of 10% or more,"- said Rick Simonson (Rick Simonson), financial director of Nokia. The company expected the mobile phone industry endure any decline in global economic growth, since these devices have become part of human life.
The price of shares Nokia, as expected, down about 40% due to problems in the industry from a sharp decline in the availability of credit and rising inflation. But Simonson said that the demand for telephones will remain high, despite the fact that consumers will become difficult choice before in the distribution of its costs.
Nokia Profit was $ 1, 75 billion or $ 0, 48 per share. At the same time last year was $ 4, 49 billion and $ 1, 14 per share. Sales rose by 4% to $ 20, 87 billion results of the second quarter of 2007 included $ 2, 98 billion profit from the establishment of Nokia Siemens Networks, JV with Siemens AG. Excluding special items Nokia said profit growth at 8% to $ 2, 18 billion Analysts, on average, saying that profit is $ 0, 56, with earnings per share in the $ 20, 05 billion
The results, published Nokia,"blew up a"bidding - to the closure of stock exchanges increased by 7, 9% or $ 26, 9."Yield Nokia was a good surprise,"- say analysts. Margin offices of mobile phones and network equipment has been above expectations. The company said that its global market share for mobile phones rose to 40% in the second quarter of 2007 was 38%.
"We are optimistic, looking at the remainder of the year, a wide range of our products have received good feedback"- said Olli-Pekka Kallasvuo (Olli-Pekka Kallasvuo), general director of Nokia. However, the average selling price continued to decline because of large volumes of budget phones and a weak dollar. The average price of mobile phone brand Nokia was $ 117, in the first quarter was $ 125 and $ 143 a year earlier.
In terms of the volume market, the company recorded the highest sales growth in Asia, Latin America, Africa and the Middle East. Sales in the U. S. grew by 10% and remained at the same level in Europe. Nokia produces many different models - from simple phones sold in large quantities in emerging markets, to more expensive smartphones equipped with GPS and music player. Simonson said that more than half of the 122 million Nokia phones were sold budgetary devices, on average, sold at a price of $ 80 or less.
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