Nokia Sees Third-Quarter Profit at High End of Guidance

Updated from 7:58 a.m. EDT

Nokia (NOK Quote) said its earnings for the third quarter should be at the high end or slightly above its previous guidance, thanks to improving margins in its mobile-phone business.

Excluding items, Nokia has said it expects to earn 0.15 euros to 0.17 euros a share (about 17 cents to 19 cents) in the third quarter. On a reported basis, the company has projected earnings of 0.14 euros to 0.16 euros (about 16 cents to 18 cents).

Analysts polled by Thomson First Call expect the company to earn 18 cents in the third quarter, before items.

The company believes third-quarter sales in its mobile-phone division will be flat or slightly down from a year ago, largely because of the weakening dollar, while "strong profitability" in the unit should continue.

Nokia said that mobile-phone volume growth for it and the industry has been solid during the quarter. The company still expects its own volume growth to outpace the overall industry in the third quarter.

Additionally, the mobile-networks market appears to be stabilizing, and the ongoing restructuring at Nokia Networks is still on plan, the company said. Nokia expects third-quarter sales at the networks unit to fall 15% to 20% from a year ago, in line with previous guidance. The unit should post a pro forma operating profit that will be close to break-even, Nokia said.

Nokia plans to release its third-quarter results Oct. 16. Shares of Nokia were down 57 cents, or 3.3%, to $16.50 in Instinet premarket trading.