Nokia profits soar 67% in 2007

Finnish vendor Nokia posted happy financial results for the fourth quarter and full year 2007 on Thursday, racking up a 67 per cent increase in profit for the year.

Net income reached Eur7.2bn in 2007, compared to Eur4.3bn in 2006, while revenues for the year jumped 24 per cent to Eur51bn even as the company consolidated Nokia Siemens Networks into its results.

The various mobile device units shifted a record total 133.5 million units in the fourth quarter, up 20 per cent sequentially and 27 per cent year on year, with the high end N series of devices accounting for over 11 million shipments.

Nokia estimates its mobile handset market share for the fourth quarter was 40 per cent, compared with 39 per cent in the third quarter and 36 per cent a year ago. The company said it gained market share in every region except North America and Latin America, where market share declined.

On the networks side, fourth quarter net sales hit Eur4.6bn, up 25 per cent sequentially, with an operating balance of zero as the company absorbed restructuring costs related to the integration of Nokia Siemens Networks.

Fourth quarter net profit for the whole company climbed 44 per cent year on year to Eur1.83bn, with revenues increasing 34 per cent from Eur11.7bn a year ago to Eur15.7bn in 2007.

Nokia chief executive, Olli-Pekka Kallasvuo, said 2007, “was a year of important strategic initiatives by Nokia, with Nokia Siemens Networks starting operations, our internet services effort taking shape around Ovi, and the announcement of the pending acquisition of Navteq. Facing a market that remains intensely competitive, we are continuing to improve our leading device portfolio as well as execution at Nokia Siemens Networks. With this we believe Nokia is well positioned for growth in 2008.”