Nokia profits dip 21pc


27 Jan 2011

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Mobile device company Nokia achieved increased sales in the fourth quarter but remains wary about its future as profits fell by 21pc.

In its quarterly and full-year results, the company noted growth trends in the mobile devices market, which CEO Stephen Elop described as “encouraging”.

In the three-month period, Nokia’s net sales were €12.7bn, up 6pc on the year and 23pc on the previous quarter.

The total mobile device volumes of 123.7m units in Q4 2010 were down 3pc year-on-year but up 12pc sequentially.

Commenting on the results, Elop said, “In Q4, we delivered solid performance across all three of our businesses, and generated outstanding cash flow. Additionally, growth trends in the mobile devices market continue to be encouraging.”

However, he was wary about the future. “Nokia faces some significant challenges in our competitiveness and our execution. In short, the industry changed, and now it’s time for Nokia to change faster," he said in the statement.

The board will propose an unchanged dividend of 40 cent per share for 2010.

Shares in Nokia are down 6.35pc to €7.31 on the news.

Article courtesy of Businessandleadership.com