Nokia increased its profit for the 4th quarter, but the share price falls

The Finnish company Nokia received a net profit of $ 443 million for the fourth quarter. During the same period, the company's sales grew by 10%. Quarterly revenue increased to 3.8 billion euros, which is 9% higher than the same period of time in 2013 and 14% more than in Q3 2014.

For the whole of 2014, the company received revenues of 12.7 billion euros, which is approximately the same as last year’s revenues. However, in the 4th quarter of 2014, the company suffered a loss of 26 million euros. and now - almost half a billion profit.

It is worth noting that the best results in the company showed a division of Nokia Networks, whose revenue increased by 8%, to 3.4 billion euros. This unit has performed well in North America. With regard to operating profit, in the 4th quarter this position of Nokia Networks was 470 million euros. This is 34.7 more than a year ago.
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The division producing equipment for mobile broadband also showed excellent results - an increase of 13% immediately. The Network Optimization and Maintenance Division increased profits by 3% (growth is shown here for the first time in two years).

According to company executives, Nokia Networks in 2015 will increase profitability to 11% (from 8% last year). However, in the first quarter of 2015, operating income and revenue are expected to decline due to seasonal factors. It was also decided to pay dividends in the amount of 0.14 euros per share.

Due to such low dividends and other reasons ( weak indicators of the company's divisions in some other regions , as an example), Nokia shares fell immediately by 4.2%. The company's capitalization is now estimated at 25.7 billion euros.