Nokia posts strong network results heralding special dividends
Published 29/10/2015 | 07:11
Nokia, the world's third biggest network equipment maker, on Thursday announced it would pay special dividends after reporting stronger-than-expected profits, as growth in China offset weaker demand in North America and Europe.
The Finnish company, which earlier this month secured regulatory approval for its proposed €15.6bn takeover of French rival Alcatel-Lucent, also pushed forward its cost synergy target of €900m by one year to 2018.
Nokia said it would distribute to shareholders about €4bn in the coming years.
Third-quarter operating profit at the company's network unit was €391m, or 13.6pc of sales.
That was roughly in line with €397m a year earlier but significantly above analysts' average forecast of a profit of €297m and a margin of 10.2pc, according to a Reuters poll.
Nokia last year sold its once-dominant phone business to Microsoft, and in August, it agreed to divest its navigation business HERE to German car makers.