Wireless and fixed-network equipment maker Nokia has reported better-than-expected third quarter earnings, mainly on the back of cost cutting measures, but saw its sales dive 8% largely due to a weaker India market
HELSINKI — Wireless and fixed-network equipment maker Nokia on Thursday reported better-than-expected third quarter earnings, mainly on the back of cost-cutting measures, but saw its sales dive 8% largely due to a weaker India market.
The Espoo, Finland-based company reported a net profit of 358 million euros ($389 million) for the July-September period, up 22% from 293 million euros ($318 million) a year earlier.
Net income attributable to shareholders was 352 million euros ($382 million), up from 299 million euros a year earlier.
Similar to its Nordic rival Ericsson of Sweden, Nokia has suffered this year and last year from operators cutting back on investments in 5G and other telecom technology because of economic uncertainty and high financing costs.
Commenting on Nokia’s performance in the third quarter, CEO Pekka Lundmark said “I am optimistic we are now turning the corner in many parts of our business, even if some continue to experience market weakness.”
Nokia’s sales were down 8% at 4.3 billion euros ($4.7 billion) compared with 4.7 billion euros ($5.1 billion) a year earlier. Lundmark said three quarters of the company’s sales decline was “driven by India due to a strong year-ago quarter.”
“Despite continued intense competition, we remain disciplined on price while still winning deals as we remain focused on improving the profitability of our business,” he said. “The (full year 2024) net sales recovery is happening slower than we expected previously, however, this is being partially offset by an improving gross margin and quick action on cost.”
The Finnish company is one of the world’s main suppliers of 5G equipment, the latest generation of broadband technology, along with Ericsson, China’s Huawei and South Korea’s Samsung.