Nokia profits soar

Nokia, the world’s largest mobile handset maker, today reported a sharp rise in profits for the last three months of 2002.

The Finnish company said fourth quarter post-tax profits rose 132% to €1.05bn.

However the profits were flattered by the inclusion of large goodwill writedowns in the comparable period in 2001.

And operating profits were up a more modest 72% to €1.47bn, while sales edged 1% to €8.8bn.

The figures come amid a tough time for telecoms firms, which have battled against a worldwide fall in demand.

Nokia chief executive Jorma Ollila said the group’s strong brand and operating efficiency had achieved “highly profitable results”.

“While the world economy had an inevitable impact on Nokia’s topline growth, our overall profitability and market position were excellent,” he said.

However despite the profits rise the group said conditions were challenging and were expected to remain so for the first quarter of this year.

Mr Ollila said the company expected a “slow start” in the sales of handsets, largely because of an industrywide build-up of stock.