Nokia to cut 1,800 jobs as net profit euro529 million

[October 21, 2010]  HELSINKI (AP) -- Nokia Corp. reported a third-quarter net profit of euro529 million ($733 million) and said it would lay off 1,800 people as new CEO Stephen Elop moves quickly to restructure its lagging smart phone business.

The profit compares to a net loss of euro559 million in the third quarter last year.

Net sales in the period grew 5 percent to euro10.2 billion, the Finnish company said Thursday.

The world's top handset maker said it will lay off 1,800 people globally as it struggles to catch competition in the high-end smart phone market.

Nokia's new CEO Stephen Elop says the company "faces a remarkably disruptive time in the industry, with recent results demonstrating that we must reassess our role in and our approach to this industry."

Nokia's profits were stronger than expected and its stock jumped 7 percent to euro8.26 ($11.45) in Helsinki.

Nokia slightly revised up previous estimates saying that it now expects the global device market to grow more than 10 percent this year but cautioned that it will lose market share in the full year.

Nokia cautioned that in the fourth quarter it expects lower device sales -- between euro8.2 billion and euro8.7 billion.

Nokia sold 110.4 million devices in the period, up 2 percent on the same period in 2009.

___

Online:

Nokia: http://nokia.com/

[Associated Press]

Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.