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Nokia Q2 Mobile Phone Sales Up 10%

7/19/2001 04:42:00 PM Eastern

Helsinki, Finland -Nokia, the only profitable company among the leading cell phone handset producers, reported a 10 percent jump in sales of mobile phones, which account for about 70 percent of the company's net revenue.

Sales reached $4.6 billion in the second quarter, up from $4.2 billion in the year-ago period.

Operating profit for the mobile phone segment, however, dropped 21 percent to $820.4 million, down from $1 billion in the same quarter in 2000.

Overall company net sales in the second quarter reached $6.3 billion, up 5 percent from the $6 billion recorded in the year-ago period, while overall net profit for the second quarter dropped 16 percent to $709.3 million, compared with $840.9 million in the year-ago period. The company said third-quarter earnings would be worse, and that the fourth-quarter financials lacked the visibility to make a call.

For the six months, mobile phone sales climbed to $9.6 billion, from $8.3 billion the previous year, while mobile phone operating profit dipped to $1.9 billion in the second quarter, compared with $2.1 billion in the same six months last year.

Overall Nokia sales rose to $13.1 billion in the first half, compared with $11.6 billion in the same six months in 2000, while net profit decreased to $1.60 billion, from $1.62 billion.