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

MarketsAssociated Press

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.

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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.