Citing an "exceptionally tough environment" Nokia, the world's largest maker of mobile phones, Today reported lower sales and a sharp drop in operating profit for the first quarter of 2009, according to dpa. The Finnish-based company posted a pre-tax loss of 12 million euros (15.8 million dollars), compared to a pre-tax profit of 1.6 billion euros for the corresponding business period in 2008. "2009 started with a market that was decelerating dramatically," Chief Executive Olli-Pekka Kallasvuo told analysts during a telephone conference. Kallasvuo cited the ramifications of the global financial crisis and the "destocking" of inventories by operators and distributors, as well as a drop in the average selling price of handsets. He forecast that the market would remain "challenging" in the second quarter citing the weak global economy but Nokia was "planning accordingly." There were also signs "the market is no longer falling in an uncontrolled manner," Kallasvuo said. First-quarter sales dropped 27 per cent year-on-year to 9.3 billion euros, the group said. The operating profit declined 96 per cent to 55 million euros, compared to 1.5 billion euros for the corresponding business period in 2008. The company sold 93.2 million units, down 19 per cent year-on-year and down 18 per cent compared to the fourth quarter of 2008. Nokia estimated its share of the global mobile phone market to be 37 per cent in the quarter, unchanged compared to the fourth quarter of 2008 but down over its 39 per cent share in first-quarter 2008.
