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Nokia raises FY margin outlook after strong Q3
2014-10-23 08:53:00| Telecompaper Headlines
(Telecompaper) Nokia reported strong improvement in third-quarter results, driven by new LTE contracts in North America and China. Net sales rose 13 percent year-on-year to EUR 3.32 billion, and adjusted operating profit was up 33 percent to EUR 457 million. Net profit increased to EUR 760 million from EUR 138 million, and adjusted EPS rose 50 percent to EUR 0.09. The bottom line was impacted by a charge of EUR 1.2 billion to write down the value of goodwill at the location services unit Here. This was offset by a one-time benefit of EUR 2.1 billion on deferred tax assets in Finland and Germany. The strong operating results led to an upgrade in the outlook for Nokia Networks. The company now expects an annual operating margin of around 11 percent, versus its previous forecast for the high end of its long-term target range of 5-10 percent. The margin was 13.5 percent in Q3 and 11.5 percent over the first nine months of the year. The forecast is based on a high proportion of mobile broadband sales in Q3 and an expected higher proportion of service revenues in Q4.
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Category:Telecommunications