Nokia profits drop amid slump in sales
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Finland's Nokia reported a 69% slump in fourth-quarter net profit to 576 million euros. The world's number one mobile phone maker said it expected a 10% decline in global sales this year, though it hopes to increase its share of the total.
AFP - Nokia, the world's leading mobile phone maker, on Thursday reported a nearly 69-percent drop in its fourth quarter net profit to 576 million euros (749 million dollars) amid falling sales and lower prices for its handsets.
After the results were released, Nokia shares were down 6.74 percent to 9.54 euros on the Helsinki stock exchange, which was 0.47 percent higher.
Chief executive Olli-Pekka Kallasvuo said the global financial crisis had dampened demand for mobile phones but insisted the company would continue to invest in future growth, although it needed to cut costs.
"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," Kallasvuo said in a statement.
In October-December the firm sold 113 million mobile phones and its market share shrank to 37 percent from 38 percent in the third quarter and 40 percent in the last quarter of 2007.
Nokia said it expected global mobile device volumes in 2009 to decline some 10 percent from the 2008 level but said it aimed to increase its own market share.