Nokia's Profits Grow 43 Percent in 2nd Quarter

July 20, 2006

HELSINKI, Finland -- Nokia Corp., the world's leading mobile phone maker, on Thursday posted 43 percent growth in second-quarter earnings, boosted by rising sales of high-end phones and a settlement related to the sale of a Turkish operator.

The results were largely in line with expectations, but Nokia shares were down 2.9 percent to Euro 15.09 (US$18.84) on the Helsinki exchange as investors worried about declining profit margins as Nokia's market growth has stalled.

Net profit for the April-June period was Euro 1.14 billion (US$1.42 billion), up from Euro 799 million from the second quarter last year. Earnings were driven by continued strong sales of high-end mobile phones with cameras, music players and Internet access.

Sales rose 22 percent to Euro 9.81 billion (US$12.24 billion), from Euro 8.06 billion in the year-ago period.

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