Nokia revises third quarter guidance upward

Nokia revises third quarter guidance upward

Nokia increases sales guidance for third quarter to Euro 8.4 billion to Euro 8.5 billion

Nokia upped its sales forecast for the third quarter due to higher device sales and a smaller decline in handset prices than expected. Instead of results in the Euro 7.9 billion (US$9.7 billion) to Euro 8.2 billion range, sales should reach between Euro 8.4 billion and Euro 8.5 billion, the company said in a statement.

At the end of the second quarter, Nokia projected declines through the end of the year in the average selling price of phones. "We saw less of a decline for Nokia then we had predicted, but those trends continue," said Rick Simonson, Nokia chief financial officer, during a conference call to discuss the change in third quarter guidance.

In addition, Nokia sold more phones then expected and continued to cut operating expenditures, both of which also contributed to the upgrade in revenue projections. Sales in Europe have been higher and sales in Latin America a bit lower then predicted.

Emerging markets continue to drive sales for Nokia. "Throughout the year we've been consistent in predicting that most of our new subscriptions will be driven out of emerging markets... and that has held true," Simonson said.

Nokia expects third quarter diluted earnings per share in the Euro 0.18 to Euro 0.19 range, instead of Euro 0.14 to Euro 0.17.

The better results are also due to the positive impact of one-time items resulting from divestments that ought to be completed in the quarter.

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