Nokia posts 66% fall in Q2 profit at euro 380 mn

Finnish mobile phone maker Nokia today reported a 66 per cent decline in profit at euro 380 million for the second quarter of this year, mainly on account of falling sales in the wake of the global economic slowdown.

The company's profit attributable to equity holders stood at euro 380 million for the three months ended June, a fall of 66 per cent as compared to the year-ago period.

The same was at euro 1.10 billion in the June quarter of 2008, Nokia said in a statement.

Net sales dropped to euro 9.91 billion in the latest quarter from euro 13.15 billion in the corresponding period a year ago.

For 2009, Nokia said the mobile phone market is expected to shrink about 10 per cent as compared to the 2008 levels.

The company's mobile device market share for the second quarter 2009 was 38 per cent, compared with 40 per cent in the year-ago period.

Nokia shipped about 103.2 million units in the second quarter, down 15 per cent as against the same period a year ago. However, the same was up 11 per cent from the first quarter of 2009.

"Our year on year market share decline was driven primarily by lower market share in Latin America, Asia-Pacific and North America. This was partially offset by a slightly higher market share in Greater China, Europe and Middle East & Africa," Nokia said.