Nokia Sees Better Fourth Quarter on Brisk Lumia Sales

Nokia Corp. (NOK) Thursday said brisk sales of its new Lumia smartphone line up has contributed to a better- than-expected result in the fourth quarter, sending shares sharply higher.

Nokia shipped 4.4 million Lumia devices in the fourth quarter, bringing total smartphone shippments to 6.6 million devices, the first increase in smartphone shipment numbers in a year.

The company, which is due to report its full fourth-quarter result on Jan. 24, estimates that its main devices and services unit will reach net sales of 3.9 billion euros in the fourth quarter of 2012, down from EUR6 billion the same quarter 2011, while total device shipments is seen at 86.3 million units, down from 113.5 million units compared with a year ago.
Also contributing to the better-than-expected result was good performance for Nokia’s wireless network joint venture with Siemens, which Nokia said delivered “record underlying profits and a third consecutive quarter of underlying profitability.”

In a statement, Nokia’s Chief Executive Stephen Elop said he is pleased over Nokia’s “solid” fourth-quarter performance.

However, Nokia warned that its first quarter performance is likely to be hit by seasonality and the competitive environment in the mobile industry.
At 1324 GMT shares were trading 17% higher at EUR3.498.