Not so good for networks business in Europe
Nokia has reported first quarter figures showing strong growth in device volumes year on year, driving increased sales. The company said it shipped 75.1 million devices in the quarter, a rise of 40% on last year’s quarter, down 10% on the final quarter of 2005.
The company said the industry as a whole saw a 27% increase in device volumes year on year, with a 12% reduction sequentially from Q34 2005.
Jorma Ollila, ceo, said, “Nokia had an excellent quarter, with very strong year on year volume, net sales and EPS growth. A robust market coupled with our strong product portfolio and excellent execution produced outstanding results in a seasonally challenging first quarter. And our device market share of 35% in the first quarter – an increase of three percentage points year on year – further reinforces our number one position globally.”
Nokia said it expected its device market share to remain about level in the next quarter.
It expects “moderate” growth in the infrastructure market in 2006 as well.
First quarter 2006 net sales of network equipment increased 19% to EUR 1.7 billion, compared with EUR 1.4 billion in the first quarter of 2005. But net sales decreased in Europe
Networks first quarter operating profit decreased 33% to EUR 149 million, compared with EUR 221 million in the first quarter 2005, with an operating margin of 8.8% (15.4%).