Nokia reports €322 million Q3 profit; plans to cut 1,800 jobs

Mobile phone device maker Nokia today reported an after-tax profit of €322 million in July-September 2010 against a loss of €913 million in the similar quarter of 2009, boosted by solid demand for its cheap smartphones. The company also announced plans to cut up to 1,800 jobs as it streamlines operations.

Nokia attributed the profit to a €529 million gain attributable to equity holders of the parent company (against a loss of €559 million) and a loss of €207 million (loss of €354 million) attributable to non-controlling interests.

Earnings per share increased to €0.14 (basic) and to €0.14 euro (diluted), compared with a negative (-) €0.15 (basic) and -0.15 euro (diluted) in the third quarter of 2009.

Nokia, however, was able to increase average sales price in its key phone unit to €65 - the first annual price rise in almost a decade.

Nokia said the job cuts, about 3 per cent of the staff at its main business, would hit most product businesses in its Symbian Smartphones organisation and its services organisation.

Nokia's net sales increased 5 per cent to €10,270 million against €9,810 million in the third quarter of the previous year. Net sales increased 4 per cent to €7,173 million from €6,915 million in the same quarter of the previous year. Net sales of Navteq increased 52 per cent to €252 million from €166 million in Q3 2009.