Nokia 2010 profit soars $ 1.4 b

Monday, 31 January 2011 00:36 - - {{hitsCtrl.values.hits}}

Nokia’s 4Q results held few surprises, with profit down year-on-year, however the period was successful enough to boost the full-year figure €1 billion ($1.4b).

The Finnish vendor generated profit of €1.3 billion in 2010, enough to double earnings per share to €0.50, as higher smartphone shipments and demand for Navteq mapping services drove revenues up 4% to €42.4 billion.

Smartphone sales grew 48% year-on-year to 100.3 million, while sales of low- and mid-tier devices fell 3% to 352.6 million. The firm estimates the shipments gave it a 32% share of the global handset market during the year, down from 34% in 2009.

The firm said its device sales were hampered by global component shortages, which it warns will continue during 1Q11.

Component shortages also hit joint venture Nokia Siemens Networks, which saw sales remain relatively flat at €12.6 billion – up 1% on 2009. The bulk of that growth came during the second half of the year, and helped the business cut its operating loss from €1.6 billion in 2009 to €686 million.

The Navteq business also cut its operating losses from €344 million to €225 million. Sales grew €330 million to €1 billion during 2010 as consumers bought more personal navigation devices, and a greater number of car makers installed the software.

Profits in the fourth quarter dipped €140 million on 4Q09 to €742 million, resulting in a 23% dip in earnings-per-share to €0.20.

Chief Stephen Elop applauded a “solid performance,” but conceded the firm “faces some significant challenges in our competitiveness and our execution.”

He is due to brief analysts in London on the firm’s future strategy on February 11.