Nokia profits up 20 per cent


Nokia has posted strong first quarter results, but said the economic climate in the US and Europe will likely hit profits through the remainder of 2008.

Nokia’s revenues were €12.66 billion, up 28 per cent on the same period last year. Operating profits rose by 20 per cent, from €1.27 billion to €1.53 billion.

Its total shipments for the first quarter were 115.5 million handsets. Nokia said it expects the global handset market to grow 10 per cent this year, but said because of the weak dollar and slowdown to the economy in the US and possibly Europe, it expects the overall market value to decline.

Nokia chief executive Olli-Pekka Kallasvuo said: “The overall device market developed as expected, with the greatest demand in emerging markets, where our position is very strong. The competitiveness of our product portfolio is reflected in our market share and we target market share gains in the second quarter.

“The portfolio is renewed on a continuous basis. While we will not have major new products shipping in the second quarter, we expect a number of new products to be shipping, and to have a positive impact on our results, in the second half of 2008.”