Nokia turns to $195 million first-quarter profit on strong growth, hit by poor network profits

Buoyed by strong first-quarter growth, Nokia has turned a net profit of 177 million euros ($195 million) from a loss a year earlier, despite a drop in profits in its main networks operations.

The Finnish company says revenue surged 20 percent in the period, to 3.2 billion euros from 2.6 billion euros a year earlier. Net loss in the quarter last year was 239 million euros.

CEO Rajeev Suri said Thursday that although sales in networks grew 15 percent, profits fell partly because of lower software sales. But he added that Nokia networks expects a better second half in 2015, and growth in all other sectors too.

Earlier this month, Nokia announced a major deal to acquire French networks company, Alcatel-Lucent, which could make it the leading global networks provider.