HELSINKI – Nokia, the well-known manufacturer of wireless and fixed-network equipment, announced on Thursday that its third-quarter earnings exceeded expectations, primarily due to its efforts in cutting costs. However, the company’s sales experienced an 8% decline, attributed largely to a challenging market in India.
Based in Espoo, Finland, Nokia reported a net profit of 358 million euros (approximately $389 million) for the period of July to September, representing a 22% increase from the 293 million euros ($318 million) recorded in the same quarter the previous year.
The net income allocated to shareholders was 352 million euros ($382 million), a rise from 299 million euros a year earlier. Similar to its Nordic competitor Ericsson, Nokia has faced challenges over the past two years as operators have reduced spending on investments in 5G and other telecommunications technologies due to economic instability and elevated financing costs.
In discussing Nokia’s performance for the third quarter, CEO Pekka Lundmark expressed optimism, stating, “I am optimistic we are now turning the corner in many parts of our business, even if some continue to experience market weakness.”
Nokia’s sales totaled 4.3 billion euros ($4.7 billion), down from 4.7 billion euros ($5.1 billion) in the same quarter last year. Lundmark noted that a significant portion of the decline in sales—approximately three-quarters—was influenced by a strong performance in India during the previous year.
“Despite the persistent fierce competition, we maintain a disciplined pricing approach while successfully securing contracts, focusing on enhancing the profitability of our operations,” he remarked. He acknowledged that the anticipated recovery in net sales for 2024 is progressing slower than expected, but this is being somewhat counterbalanced by an improving gross margin and proactive cost management measures.
Nokia stands out as one of the principal global suppliers of 5G equipment, a crucial advancement in broadband technology, competing alongside Ericsson, China’s Huawei, and South Korea’s Samsung.