Nokia announces net sales of €10.3bn

21 Oct 2010

Mobile phone manufacturer Nokia has announced its net sales for the third quarter of 2010.

The mobile phone giant’s third quarter 2010 net sales increased 5pc to €10.3bn, compared with €9.8bn in the third quarter 2009, and increased 3pc compared with €10.0bn in the second quarter 2010.

While the company released their third quarter net results, Nokia also announced that they will be making up to 1,800 job cuts.

Nokia reported that constant currency, group net sales would have decreased 2pc year-on-year and increased 1pc sequentially, while reported net sales of €29.795m and earnings per share (diluted) were €0.30 for the period from 1 January to 30 September, 2010.

There was an increase in net sales for the company’s devices and services amounted to €7.2bn – a 4pc increase year-on-year and 6pc sequentially (down 5pc and up 2pc at constant currency).

Nokia reported services net sales of €159m, an increase of 7pc year-on-year and 1pc sequentially; billings of €325m, up 89pc year-on-year and 10pc sequentially and total mobile device volumes of 110.4 million units, up 2pc year-on-year and down 1pc sequentially.

The results are the first announced by the Finnish technology giant since the announcement of Stephen Elop as its new CEO.

Commenting on the results, Elop said: “Our company faces a remarkably disruptive time in the industry, with recent results demonstrating that we must reassess our role and our approach to this industry.

“Some of our most recent product launches illustrate that we have the talent, the capacity to innovate, and the resources necessary to lead through this period of disruption. We will make both the strategic and operational improvements necessary.”

Nokia expects these disruptive times to have an effect on its mobile devices market, with expectations “slightly lower” compared to 2009.

Nokia announced the planned job cuts because of the company’s ailing smartphone business as they aim to catch up with their competitors.