Nokia

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posted first-quarter sales growth that exceeded the company's earlier estimates, while the mobile-phone maker's income met its prior expectations.

Still, Nokia said it expects sales to grow 20% for the second quarter and full year, a forecast considerably below prior projections of a 25% to 35% increase.

The company said net sales for the first quarter rose 22% to 8 billion euros ($7.17 billion) from 6.54 billion euros ($5.86 billion). Before issuing an outlook in March, Nokia expected sales for the quarter to grow 25% to 30%. Sales for

Nokia Networks

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rose 35%, while the company's mobile-phone segment reported a 20% increase in revenue.

Nokia posted first-quarter net income of 1.05 billion euros, up from 910 million euros in the same period a year ago. The company reported earnings of 0.19 euro per diluted share, which translates to 17 cents a share, meeting its earlier guidance. Analysts polled by

Thomson Financial/First Call

expected the company to earn 17 cents in the latest quarter.

The American depositary shares of Nokia lost 35 cents, or 1.1%, to $31.25 in preopen

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action.