Meanwhile Paris-based Alcatel-Lucent’s quarterly figures show that while the vendor has widened its losses it has reported higher margins and underlying profitability, which it says will help the company’s preparation for its purchase by Nokia.
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Overall Nokia’s third quarter attributable net profit dropped to US$166 billion (RM713.8 billion), a fifth of what it was in the same period a year ago, while sales were down 2% to US$3.4 billion (RM16.2 billion). Nokia said profit was also hit by higher foreign exchange losses, interest expenses and greater tax payments.
Nokia, the world’s No. 3 network equipment maker, on Thursday reported stronger-than-expected profits as growth in China offset weaker demand in North America and Europe, and announced a new shareholder return plan. Third-quarter 2015 consolidated revenues of $593 million decreased 39 percent from the prior year’s third-quarter revenues of $980 million.
Walkley noted, “We believe Nokia’s continued focus on maintaining tight cost controls demonstrates the strong management execution heading into the Alcatel Lucent merger”.
“The performance at Nokia Networks was the highlight of the quarter”, Suri insisted, which “allowed us to raise our full-year outlook for that business”.
The shareholder distributions would include dividends of EUR 0.15 per share in 2015 and 2016, a special dividend of EUR 0.10 per share in 2016, and a EUR 1.5 billion share repurchase programme.
Sami Sarkamies, senior analyst at Nordea Bank said the result was “excellent, with a positive surprise” from the networks unit.
In the three months to 30 September, Nokia’s Networks arm generated revenue of €2.88 billion, down from €2.94 billion in the same quarter of 2014. On the other hand, Nokia Technologies posted operating profits of €94 million, down 4% YoY.
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Shares of Nokia Corporation (ADR) (NYSE:NOK) are gaining by 8.43% to $7.20 in pre-market trading on Thursday morning. Today, Nokia announced an accelerated target of approximately Euro 900 million of annual operating cost synergies to be achieved on a full year basis in 2018, relative to the combined non-IFRS results of Nokia and Alcatel-Lucent for full year 2015.
