Nokia's Profits Down; Sales Show Rise

First quarter operating profit stood at 488 million euros with net sales of 9.5 million euros.

The second quarter results posted by Nokia show a one percent growth in net sales standing at 10 billion euros compared to a year ago. Net sales were five percent higher than those of the previous quarter.

Operating profit during the second quarter was down 31 percent compared to last year standing at 295 million euros. A year ago operating profit stood at 427 million euros.

Compared to the previous quarter, Nokia's preliminary estimated mobile device market share remains at 33 percent. A year ago, Nokia estimated its share at 35 percent.

In a press statement, Nokia’s CEO Olli-Pekka Kallasvuo said the company has several reasons to be optimistic.

“The global handset market has continued to grow at a healthy pace and we are also encouraged by the solid second quarter performance of our Mobile Phones business, helped by an improving line-up of affordable models” he commented.

Turning to the smart phone sector where the company is on an uphill battle, Kallasvuo noted the company continues to renew its portfolio.

CEO Kallasvuo Under Pressure

Kallasvuo’s position as Nokia boss has been under pressure over the past two weeks following a recent profit warning and a report in the Wall Street Journal that Nokia was looking for a replacement CEO.

On Thursday, a seemingly embattled Kallasvuo told the YLE that speculation over his position was damaging the company “and must be brought to an end one way or another," he said.

Nokia’s shares rose by about 3 percent on Thursday afternoon. Since Kallasvuo took over as CEO, company share value has dropped by 60 percent.