Nokia sales rise but profits dip on weaker margins
Nokia posted higher third-quarter sales on Thursday, but operating profit declined to 435 million euros from 485 million euros a year earlier. The Finnish telecommunications equipment maker generated 4.8 billion euros in revenue, surpassing analyst forecasts as all divisions expanded. Chief Executive Justin Hotard said optical networks grew by 19 percent, driven mainly by clients in artificial intelligence and cloud computing.
Gross margins dropped 150 basis points compared with the previous year because of weaker software performance in mobile networks and product mix changes in network infrastructure. Net profit fell 9 percent to 324 million euros for the July through September period. The company maintained its forecast for annual operating profit between 1.7 billion euros and 2.2 billion euros.
