Monday 23 April 2018

Nokia posts strong network results heralding special dividends

Nokia Oyj is in talks to buy smaller telecom equipment maker Alcatel-Lucent, a deal that would combine the industry's two weakest players but could pose challenges in cutting costs and overcoming political opposition. Photo: Reuters
Nokia Oyj is in talks to buy smaller telecom equipment maker Alcatel-Lucent, a deal that would combine the industry's two weakest players but could pose challenges in cutting costs and overcoming political opposition. Photo: Reuters

Jussi Rosendahl

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.

Reuters

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