The world's top mobile phone maker Nokia cut its forecast for second half profitability and 2009 market share at its key phone unit today, sending its shares sharply lower.
Nokia, which is facing tough competition from the likes of Apple, Samsung and RIM, scaled back its second-half underlying operating profit margin forecast for its key phone unit to the first-half level of 11.3 per cent, from 13-19 per cent previously.
Nokia also cut its forecast for 2009 market share at its phone business, seeing it now on a par with last year, compared with an earlier forecast for a rise.
Shares in Nokia fell more than 8 percent on the news to €10.18, compared with a 2.8 per cent lower DJ Stoxx technology index.
Nokia's underlying earnings per share slumped to €0.15 from €0.37, but beat the average forecast of €0.13 in a Reuters poll of 31 analysts. The handset industry this year is facing its worst downturn ever, and earier today Sony Ericsson reported a deep loss for April-June.
Nokia also said its telecom equipment arm, Nokia Siemens Networks, had won a €1.1 billion order to operate the telecoms networks of Brazilian operator Oi over the next five years.
Reuters