They reported an underlying operating profit of EUR 470 million, compared to 359 the previous year, and beating the expected profit forecasts of EUR 415 million. Net income saw a major increase with EUR 443 million, up from a loss of EUR 26 million a year earlier. Sales also rose over 9%, a higher growth than its top competitor Ericsson, which saw sales increase by 1% the same quarter.
This growth was due to cost cutting moves by the company, as well as higher spending from carriers to expand and upgrade their networks. Nokia particularly saw improvements in Europe, China and North America, the latter of which saw an 8% increase in business as networks prepare to roll out faster services.
Nokia expects this quarter to see a smaller adjusted operating margin, but maintains that it will maintain its long term target this year. CEO Rajeev Suri (pictured) is confident that 2015 “is a year of execution”, as Nokia spent the previous year transitioning from the sale of its long-held mobile division to Microsoft. Both companies finally seem ready to settle in, and Nokia expects higher sales from all three of its current business units. It’s good to finally hear some positive news coming out of Espoo!