The Helsinki-based mobile phone company made made 845 million euros ($1.06 billion), or 21 euro cents a share, for the quarter ended Sept. 30. That's down from the year-ago 881 million euros, or 20 euro cents a share. Sales rose to 10.1 billion euros ($12.5 billion) from 8.4 billion euros a year earlier.
Excluding a mobile phone unit restructuring, latest-quarter earnings were 23 euro cents (29 cents U.S.) a share. Analysts surveyed by Thomson Financial were looking for a 30-cent profit on sales of $12.37 billion.
The company said it sold 88.5 million mobile devices, up 13% sequentially and 33% year-on-year. Average selling prices fell to 93 euros from 102 euros a year earlier.
Sales growth at the networks unit was 16%.
"We saw impressive share gains in the fast growing emerging markets, where we continued to build on our clear No. 1 position," the company said. "Catering mostly to the emerging markets, our entry-level device business performed extremely well, driven by outstanding volume growth and a solid product portfolio. The strong growth in the entry-level coupled with a lower percentage of sales in higher end products impacted our margins."
The company forecast industrywide volume growth of 15% in the fourth quarter but said it expects its own market share to be flat sequentially. The company said it expects 2006 industrywide handset sales of 970 million units, but average selling prices should keep falling in the fourth quarter.