Pretax profits down 50% at Nokia Ireland

NOKIA IRELAND saw its pretax profit more than halve last year as turnover declined over the 12 months as margins fell and expenses rose.

The Irish unit of the mobile phone giant recorded profit before tax of €4.79 million in 2009, compared to €11.15 million a year previously, a decline of over 57 per cent.

There was a sharp rise in administrative expenses to €9.43 million in 2009, up 37 per cent over the 12 months.

Turnover for the year was €246.13 million, just over 9 per cent less than the €270.89 million recorded in 2008.

The Nokia group has suffered at the hands of competitors such as Apple in recent times, particularly at the higher end of the market.

Its smartphones have failed to make much of an impact since the N95 and Nokia is pinning its hopes on new handsets and services to restore its fortunes. At Nokia World last month, the company showed off its new C6 and C7 handsets, and its latest communicator, the E7.

The mobile phone maker acknowledged it had not had an easy time of it in the past few years, but insisted that its Symbian platform was holding its own, despite the competition. Nokia’s executive vice-president of marketing Niklas Savander, meanwhile, said the company refused to apologise for not being Apple or Google.

The company has announced a number of management changes, signalling a major shake-up at the top.

Chairman Jorma Ollilia is to step down in 2012, with the companys executive vice-president of mobile solutions Anssi Vanjoki also due to leave within months.

Chief executive Olli-Pekka Kallasvuo departed last month, and was replaced by Microsofts Stephen Elop.