Nokia's net Q2 income soars 59 per cent

Nokia grew sales and profits at a healthy clip in the second quarter, reflecting soaring growth in broadband and data-related products as well as for mobile phones.

The Finnish equipment manufacturer reported net income of 581 million euros ($939.9 million) for the second quarter ending June 30, up 59 per cent over the second quarter of 1998, when income totalled 365 million euros.

Sales rose 45 per cent in the second quarter to 4.5 billion euros, compared to 3.1 billion euros year on year, Nokia officials said. Sales were strongest in Europe, growing 56 per cent, followed by Asia Pacific with 23 per cent sales growth, and a 21 per cent increase in sales in the Americas.

Operating income also increased 56 per cent to 881 million euros from 563 million euros in the year earlier quarter, Nokia said.

Nokia partly attributed its results to the strong growth in subscribers for GSM (Global System for Mobile Communications) mobile networks. Nokia sells equipment to operators to upgrade and expand their networks.

The company also significantly increased its mobile phone business, strengthening its position as the world's top mobile phone manufacturer, according to Nokia officials. Sales of mobile phones grew 58 per cent over the previous year to 2.9 billion euros, compared to 1.8 billion euros in the second quarter of 1998.

Nokia expects to reach or even exceed its targets of growing net sales by 25 to 35 per cent in the 1999 fiscal year, the company said.

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