Science & technology
Nokia reports renaissance
Publish Date: Jul 24, 2014
Nokia reports renaissance
FINLAND : Microsoft and Nokia signs are seen in Peltola Oulu , Finland, on July 16, 2014. Nokia jumped back into profit in the second quarter. PHOTO/AFP
  • mail
  • img
newvision

PARIS - Finnish telecom equipment group Nokia jumped back into profit in the second quarter, it reported on Thursday, boosted by restructuring after it lost its leading position in handsets and sold its phone division to Microsoft.

The group reported a net profit for the quarter of 2.51 billion euros ($3.38 billion), from a loss of 226 million euros at the same time last year, and surprising the market with an unexpectedly rapid recovery based on network technology.

But sales fell by nearly 7.0 percent to 2.942 billion euros, although this was in line with the overall expectations of analysts polled by Dow Jones Newswires.

The strong turnaround boosted Nokia shares which were showing a gain of 9.0 percent to 6.27 euros in early trading. The overall Finish stock market was ahead by 0.89 percent.

The group is focusing on its information networks expertise and on its data technologies.

Chief executive Rajeev Suri said in a statement that the technology networks division "has allowed us to deliver strong profitability while improving our topline trend."

He said: "Maintaining this balance will remain a clear priority in the second half of the year when we expect networks to return to year-on-year growth.

"Our expectations for the full year 2014 have improved and we now expect full year underlying profitability for networks to be at our slightly above our long-term target range of 5 to 10 percent."

Nokia fell rapidly from a leading place in the mobile telephone equipment industry to a straggler after being overtaken by the rise of smartphones.

But the group has a long history of successfully re-inventing itself, and Suri said that the latest quarterly performance "along with many conversations I have had with customers, partners, employees and others in my first quarter as CEO, gives me a high degree of confidence about our future."

He also said that free navigation applications for the auto sector, called HERE, were doing well and that the group would continue to invest in this.

The technologies activities of the group raised gross profit by more than 30 percent during the quarter, thanks largely to Microsoft which has become the main owner of the intellectual rights after buying the handsets and services activities.

But on July 17, Microsoft said it would shed 18,000 jobs around the world with the loss of about 1,100 jobs in Finland.

Nokia's restructuring plan, announced in 2011, has generated heavy charges likely to amount to 2.0 billion euros by the end of this year.

The number of Nokia emoployees at the end of the quarter was nearly 56,500, about 1.0 percent fewer than at the same time last year.

AFP

Related Stories

Microsoft profit hurt by Nokia, but revenues jump

Nokia debuts Android handsets

 

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
Rosetta comet-landing is Science
The top scientific breakthrough of 2014 was the European Space Agency''s Rosetta spacecraft''s rendez-vous with a comet....
N. Korea denies involvement in Sony cyber attack
North Korea's UN mission denies involvement in a cyber attack on Sony Pictures after the US FBI said it had evidence that Pyongyang was behind the hacking....
Sony hack a
Cyber attacks that ultimately prompted Sony Pictures to scrap the release of a madcap comedy about North Korea are a "serious national security matter," the White House said...
Apple co-founder Wozniak skeptical on smartwatches, Google Glass
Steve Wozniak says he is no fan of smartwatches and believes Google Glass will fail as he cautioned not to expect the company he co-founded, Apple, to always lead the way into new technologies....
Hackers trick way into ICANN computers
The private agency that acts as a gatekeeper for the Internet on Wednesday said that hackers tricked their way into its computers....
Venus probe ends after it runs out of fuel
The space probe that spent eight years carrying out a detailed analysis of Venus is out of fuel, and is set to die....
Do you agree with the ban on the export of maids?
Yes
No
Can't Say
follow us
subscribe to our news letter