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UPDATE 1-Network gear maker Nokia posts surprise profit rise
2015年7月30日 / 早上6点23分 / 2 年前

UPDATE 1-Network gear maker Nokia posts surprise profit rise

* Networks Q2 non-IFRS EBIT 313 mln euros vs 235 mln euros

* Software sales boost its main network unit’s margins

* Group profit boosted by one-time gain of 110 mln euros

* Nokia says review of maps business in “advanced stage”

* Analyst says share should rise (Adds analyst comment, details on one-off items)

By Jussi Rosendahl

HELSINKI, July 30 (Reuters) - Nokia, the world’s No. 3 telecom network equipment maker, posted a surprise rise in quarterly profits on Thursday helped by lucrative software sales and a refusal to chase after lower-margin contracts that had hurt profits previously.

The Finnish company, which in April proposed a 15.6 billion euro takeover of French rival Alcatel-Lucent, said operating profit at its network unit was 313 million euros ($343 million), or 11.5 percent of sales.

That was up from 281 million euros a year earlier, and well above analysts’ average forecast of a profit of 235 million and a margin of 8.3 percent, according to a Reuters poll.

Network equipment sales were 2.73 billion euros, below a market consensus of 2.84 billion, as the company focused on more profitable contracts. This contrasted to earlier this year, when it signed several lower-margin deals to win business in China that cut into profits.

“Operative performance was really good, software sales were exceptionally high, which boosted margin,” said Inderes analyst Mikael Rautanen, who has been recommending investors reduce holdings in the stock. He expected a positive market reaction.

Nokia’s total non-IFRS group profit increased 51 percent from a year ago to 521 million euros, topping the 334 million forecast by analysts. The results was boosted by a 110 million euro gain on the sale of a Chinese investment.

The company also said its strategic review of its HERE navigation business was now in an advanced stage. Last week, Reuters reported that the company was closing in on a deal to sell the maps operation to German carmakers for between 2.5 billion and 3 billion euros.

$1 = 0.9114 euros Reporting by Jussi Rosendahl; editing by Eric Auchard and Jason Neely

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