HELSINKI: Rajeev Suri, the chief executive at Nokia, was delighted with the network equipment maker’s performance between April and June after a sluggish start to the year.
Nokia is doubtful that it is able to maintain the high level of profitability it achieved in the second quarter of the year. The network equipment manufacturer reported on Thursday that its operating profits surged by 50 per cent year-on-year between April and June. It refrained from revising its guidance for the entire year despite posting a profit margin that far exceeded its expectations for the second quarter.
It is therefore likely that the operating profits will revert to their normal levels in the ongoing quarter. Rajeev Suri, the chief executive at Nokia, was delighted with the second-quarter performance especially after a sluggish start to the year. The net sales of network equipment and services crept up in all markets with the exception of the Asia-Pacific. The sales of software, which typically feature a higher profit margin than equipment sales, similarly increased.
“All of our business segments reported a solid result. I am particularly pleased with the 50 per cent increase we recorded in earnings per share and the solid 40 per cent gross profit percentage of our network equipment operations,” he said.
