Nokia's first-quarter results fall less than expected

In the early hours of April 22 in Beijing, Nokia shares fell 15% in Thursday, according to foreign media reports, as the company's first-quarter net profit and revenue were less than analysts had expected, and management lowered its expectations for operating margins in its main divisions. Nokia's Thursday results for the first quarter of fiscal year 2010 showed a net profit of 349 million euros (about 465 million US dollars) per share in the first quarter, which was better than the same period last year.　　In the first quarter of 2009, Nokia had a net profit of € 122 million (about $163 million), earning 3 euros per share (about 4 cents).　　Excluding special items totaling 322 million euros (about 431 million US dollars), Nokia's earnings per share for the first quarter were 14 euro (about 19 cents), with earnings of 10 euro (about 14 cents) per share in the same period last year, less than analysts ' expected earnings per share of 15 euro (about 20 cents).　　Nokia's first-quarter revenues were € 9.52 billion (about 12.74 billion US dollars), up 3% from a year earlier, down 21% from the previous quarter, and less than the analyst's expected 9.69 billion euros (about 12.97 billion dollars). Nokia forecasts that the equipment and services sector revenue for the second quarter was € 6.7 billion (about 9 billion U.S. dollars) to € 7.2 billion (about $9.6 billion), adjusted operating profit margins from 9% to 12%, and 2010 to 11% for the adjusted operating profit for the fiscal year, down from 13% to 12%, which the company had previously expected.　　Nokia also reiterated its previous expectation that global handset sales would grow by 10% in 2010 and that market share would remain unchanged. Tero Kuittinen, a market research firm MKM, Tello Quidinan, said several analysts in the US had raised Nokia's earnings forecasts over the past few weeks, pushing Nokia's share price back, but Nokia's first-quarter earnings "undermined" the rebound trend.　　Quidinan said Nokia's mobile phone sales in Europe were down 30% in the first quarter, which was particularly worrisome. Its core unit, the Equipment and services division, has a revenue of 6.66 billion euros (about 8.91 billion U.S. dollars) in the first quarter, up 8% from a year earlier. Nokia's first-quarter handset sales were 107.7 million, up 16% from a year earlier, but down 15% per cent from the previous quarter.　　Nokia's first-quarter smartphone sales were 21.5 million, up 57% from a year earlier. Nokia's first-quarter average selling price fell to € 62 (about $86) in the last quarter, down from 64 euros (about $83), partly due to the lack of new product launches since the start of the year.　　The first-quarter gross margin of Nokia's equipment and services sector fell to 32.4% from 34.3% in the same period last year. Jeov Braber of CCS Insight, UK market research company (Geoff BlabER) pointed out that Nokia's handset sales performance "strong", but the core sector operating margins are disappointing. (Tangfeng)