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Nokia sees operating profits slump

Nokia has posted a 20% increase in third quarter sales but has been hit by a drop in operating profits.

Nokia has posted a 20% increase in third quarter sales but has been hit by a drop in operating profits.

For the third quarter the company saw sales jump to 10.1bn euros (£7bn), but operating profits dropped 4% to 1.1bn euros.

Although all Nokia’s divisions saw sales increases, most of them also saw big falls in operating profits.

The one bright spot was in Nokia’s multimedia division, which saw a 49% increase in operating profits to 366m euros.

The company’s enterprise division continues to perform poorly, seeing its losses increase from 37m euros in the third quarter last year to 65m euros this time round.

Nokia’s main mobile phones business saw operating margins slump from 16.9% to 13.1% in the third quarter.

Nokia chief executive officer Olli-Pekka Kallasvuo said, “Strong growth in entry-level markets coupled with a lower percentage of sales in higher end products impacted our margins.”

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