Nokia sees operating margins slump

Nokia posted a big sales and net profit increase for the first quarter, but saw its operating margins fall.

Nokia posted a big sales and net profit increase for the first quarter, but saw its operating margins fall.

Sales were up 28% to £10.12bn and net profits for the group went up 25% to £977m.

However, overall operating margins fell to 12.1% from the 12.9% seen in the first quarter last year.

This was primarily down to the poor performance of the networks side of the business, where Nokia has joined forces with Siemens to form Nokia Siemens Networks.

The new organisation made an operating loss in the quarter, with Nokia having to absorb high reorganisation costs, including thousands of redundancies.

The group also had to deal with lower prices received for handsets and services in developing countries.

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