Nokia Q3 profit beats expectation, sees signs of recovery

FINNISH telecom equipment supplier Nokia on Thursday (Oct 17) reported a 9 per cent rise in third-quarter operating profit, and echoed rival Ericsson in seeing demand recovery in some areas.

“I am optimistic we are now turning the corner in many parts of our business, even if some continue to experience market weakness,” chief executive officer Pekka Lundmark said.

Nokia maintained its full-year outlook and said it expects a significant acceleration in growth in the fourth quarter in its network Infrastructure business.

Comparable earnings before interest and tax rose to 454 million euros (S$647 million) from 418 million euros last year, beating the 424 million euros expected by analysts in an LSEG poll.

Comparable gross margin rose to 45.7 per cent from 40.8 per cent aided by cost cuts and as it sold more equipment to high-margin markets.

Net sales fell 8 per cent to US$4.33 billion euros, mainly due to lower sales to India. Demand from Indian clients have dropped significantly this year after a growth spurt last year. REUTERS