Discussion in 'Technical Analysis' started by ZZZzzzzzzz, Oct 20, 2005.
its now 16.13.
Yes, it is. And the volume is very heavy.
Nokia 3rd-Quarter Profit Jumps 29 Percent
10/20/2005 8:35:00 AM
STOCKHOLM, Sweden, Oct 20, 2005 (AP Online via COMTEX) -- Nokia Corp. posted a 29 percent increase in third-quarter earnings on Thursday, boosted by growing global demand for cell phones and strong sales of low-end phones in emerging markets.
The world's top cell-phone maker said net profit for the three months ending Sept. 30 rose to 881 million euros ($1.05 billion), or 20 euro cents (24 U.S. cents) per share, from 685 million euros, or 15 euro cents per share, in the same period last year. Sales rose 18 percent to 8.4 billion euros ($10.04 billion) from 7.1 billion euros a year ago.
The earnings exceeded expectations, while sales came in slightly lower than expected, and Nokia shares dropped 2.7 percent to 13.66 euros ($16.32) in Helsinki trading.
"Profitability was driven by an excellent performance from our device businesses," Nokia Chairman and CEO Jorma Ollila said. "This was backed by growing strength in our product portfolio and our ability to manage costs and execute well."
Nokia, whose main competitors in the mobile phone market have also reported growing sales, had raised its third-quarter revenue forecast last month, citing better-than-expected sales of mobile devices and steady prices.
The Finnish company said it sold a record 66.6 million units in the quarter as market share grew to 33 percent, one percentage point higher than in the same period last year, according to its own estimates.
After market share, sales and profit fell in 2004, Nokia has recovered by revamping its product range in a revival that has come mainly at the expense of smaller rivals.
Nokia said it saw the strongest growth in China and the Asia-Pacific region, while it lost market share in the Americas.
It raised its full-year forecast for the global handset market to 780 million units from an earlier estimate of 760 million units.
Espoo, Finland-based Nokia said it expects to gain market share in the fourth quarter, but added that its average selling price would drop as growth stems mainly from emerging markets with large sales of low-end phones.
In the third quarter, the average selling price dropped to 102 euros ($122), from 108 euros in the year-ago period and 105 euros in the second quarter.
"It's still low-end phones that is driving the Nokia business," said Copenhagen, Denmark-based telecom analyst John Strand. "The industry has been talking about advanced phones and smartphones for many years, but the takeoff is still not there."
Nokia, which increasingly is adding music, cameras and other features to its handsets, also said it saw high demand for its third-generation smartphones, with the 6680 being the best selling 3G handset in the world.
Nokia's report follows upbeat results from its competitors.
The company's closest rival, Motorola Inc., said Wednesday its third-quarter earnings more than tripled on record sales. Last week, the world's No. 3 handset maker, Samsung Electronics Co., said it sold a record 26.8 million mobile phones during the quarter.
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