Nokia reports sliding profits


Nokia became the latest mobile manufacturer to express caution after posting significant Q4 2008 losses.

Its operating profit fell 80 per cent in the quarter to €492 (£462m) with sales down 19 per cent year on year to €12.7 billion.

The manufacturer estimated that the entire mobile industry shipped 305 million devices in the period, down nine per cent year on year and shipped just 113.1 mllion units itself, down 15 per cent year on year and a four per cent decrease on the previous quarter.

Nokia’s market share also suffered, dropping to 37 per cent, a three per cent loss compared to Q4 2007 and down from 38 per cent in Q3 2008.

It added that it expects device volumes to suffer a big drop in Q1 2009 but said that it expects its market share in that quarter to be at approximately the same level sequentially.

Nokia CEO Olli-Pekka Kallasvuo said: “In recent weeks, the macroeconomic environement has deteriorated rapidly, with even weaker consumer confidence, unprecedented currency volatility and credit tightness continuing to impact the mobile communications industry.

“We are taking action to reduce overall costs and to preserve our strong capital structure. This is clearly our top priority in the current economic environment.

However; it’s important for Nokia to continue investing at the proper pace in future growth. We believe Nokia has a tremendous opportunity to capture value as the Internet services market evolves and grows. Being a catalyst for change has been our heritage and it will be our future.”