Nokia, the world's largest maker of mobile telephones, reported increased first quarter 2005 turnover and profit on Thursday. The Finnish-based group reported turnover of 7.4 billion euros (9.69 billion dollars), up 17 per cent on the same business period in 2004. Net profit increased 18 per cent to 863 million euros (1.1 billion dollars), compared to 729 million euros for the corresponding business period in 2004. Operating profit increased 10 per cent to 1.1 billion euros (1.4 billion dollars), the group said. In a preliminary estimate, Nokia said its global share of the mobile phone market was 32 per cent, on the same level as the corresponding quarter in 2004, and a slight drop on the 34 per cent reported in fourth quarter 2004. Nokia accounted for 53.8 million of the 170 million handsets sold during first quarter 2005. "Year-on-year volume growth during the quarter was fastest in China, which became our number one single market," Nokia chairman and chief executive Jorma Ollila said. Asia Pacific and Europe, Middle East and Africa also grew, while Ollila said volume declines in North America and Latin America were "disappointing". For the second quarter, Ollila said Nokia forecast the global handset market for 2005 at about 740 million units, compared with a previous estimate of roughly 10 per cent annual growth, from an estimated 643 million units in 2004. The mobile phones unit posted 11 per cent higher sales for the first quarter 2005 compared to the corresponding period in 2004. Sales of networks increased as operators in Europe, Latin America and Asia expanded network capacity and coverage, Nokia said. In its second quarter outlook, the group forecast net sales of between 7.9 billion and 8.2 billion euros, compared with 6.5 billion euros in the second quarter 2004.
