Friday, 21 July 2006

Nokia’s Q2 Earnings Rise

Nokia has reported higher second-quarter earnings of 0.23 euros from 0.17 euros a year ago, as forecast, as compared with analysts’ view of 0.24 euros. Nokia's sales jumped to 9.8 billion euros from 8.1 billion in the same period a year earlier.

Nokia said it sold 78.4 million phones in April-June and its shipments grew slightly faster than the market, which increased 26 percent, according to Strategy Analytics.

Nokia spent 851 million euros on marketing in the quarter, up from 688 million a year earlier, in keeping with its forecast for a material increase.

Nokia said it expected its share of the market in the third quarter to remain at the second quarter level of 34 percent. Nokia itself had forecast its share would be 35 percent in the second quarter.

In spite of the sharp rise the company fail to impress its investors, after rival Motorola’s impressive earnings and outlook.

Motorola reported 53 percent growth in quarterly shipments for the second and said it expected the demand trend to continue in the third quarter.