Signs of Recovery Seem in Nokia

Nokia reports strong Q4 2009 results with operating profits up 131.9 per cent year-on-year and a 22 per cent rise in sales compared to the previous quarter
Nokia finished last year strongly after today reporting a surge in operating profit and sales for Q4 2009.

Quarterly operating profit was up 131.9 per cent year-on-year, rising from £426 million to £1.14 billion. It reported net sales of £10.38 billion, down five per cent year-on-year but up 22 per cent from the previous quarter, as well as operating cash flow of £1.3 billion, more than double the cashflow for Q3.

It sold 20.8 million 'converged devices' compared with the 15.1 million it sold in the same period last year and 16.4 million units in Q3 2009. These include devices such as the N97 and E62. This helped it gain a smartphone market share of 40 per cent, up from 35 per cent in Q3 2009.

Overall Nokia gained an estimated global market share of 39 per cent, up from an estimated 37 per cent in Q4 2008 and 38 per cent in Q3 2008. It also shipped 126.9 million units in the quarter, up 12 per cent year-on-year and 17 per cent from the previous quarter.

Nokia CEO Olli-Pekka Kallasvuo said: "We grew our market share in smartphones in the fourth quarter, driven by the successful launch of new touch and QWERTY models. Our performance in smartphones, combined with continuing success in the emerging markets, helped us increase sales in our Devices & Services unit, both quarter-on-quarter and year-on-year. Our solid results also owe a good deal to world-class supply chain management and impressive sales execution."