Updated from 6:49 a.m. EDT

Nokia ( NOK), the world's largest mobile phone maker, on Thursday reported that its first-quarter operating profit fell 96% from a year earlier to 55 million euros ($72.3 million) in what the company calls an "exceptionally tough environment."

During the quarter, Nokia said it shipped 93.2 million mobile phone units, down 19% from a year earlier. Market share in the quarter was 37%, unchanged from the fourth quarter, but down from 39% in the year-earlier first quarter.

However, Nokia said in a statement that it expects industry mobile device volumes in the second quarter to be flat or up slightly sequentially, while it sees its mobile device market share increasing sequentially.

That appeared to be enough to cheer investors. Shares of Nokia were up 10.5% to $14.76 in premarket trading.

Sales in the first quarter fell 27% to 9.27 billion euros from 12.7 billion in the same period a year earlier. Phone sales dropped 33%. Net profit in the quarter plunged 90% to 122 million euros from 1.2 billion euros in the same period last year.
Copyright 2008 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.

If you liked this article you might like

10 Stocks That Are Ready to Change Direction

10 Stocks That Are Ready to Change Direction

Wall Street Futures Edge Higher Amid 'Super Thursday' Earnings; Apple Q1 Awaits

Wall Street Futures Edge Higher Amid 'Super Thursday' Earnings; Apple Q1 Awaits

What a Nationalized 5G Plan Would Mean for Google, Comcast, Verizon and Others

What a Nationalized 5G Plan Would Mean for Google, Comcast, Verizon and Others

5G, Sanofi, Ablynx, Coincheck and Bruno Mars - 5 Things You Must Know

5G, Sanofi, Ablynx, Coincheck and Bruno Mars - 5 Things You Must Know

What Is 5G Technology?

What Is 5G Technology?