Nokia boosted 4Q earnings, but stock prices fall
Finnish company Nokia received a net profit of $ 443 million for the fourth quarter. Over the same period, company sales rose 10%. Quarterly revenue increased to 3.8 billion euros, which is 9% higher than the same period in 2013 and 14% more than in the 3rd quarter of 2014.
For the entire 2014, the company received revenue of 12.7 billion euros, which is approximately equal to revenue for the previous year. However, in the 4th quarter of 2014, the company received a loss of 26 million euros. and now - almost half a billion profits.
It is worth noting that the best results in the company were shown by the Nokia Networks division, whose revenue increased by 8%, to 3.4 billion Euros. This division performed well in North America. As for operating profit, in the 4th quarter this index of Nokia Networks amounted to 470 million euros. This is 34.7 more than a year ago.
The unit manufacturing equipment for mobile broadband has also shown excellent results - here growth is immediately by 13%. The network optimization and maintenance division increased profit by 3% (growth is shown here for the first time in two years).
According to company executives, Nokia Networks in 2015 will increase profitability to 11% (from 8% last year). However, in the first quarter of 2015, operating profit and revenue are expected to decline due to seasonal factors. It was also decided to pay dividends of 0.14 euros per share.
Due to such low dividends and other reasons ( weak performance of the company’s divisions in some other regions , as an example), Nokia shares fell immediately by 4.2%. The company's capitalization is now estimated at 25.7 billion euros.