April 22, 2010 / 10:20 AM / 10 years ago

Nokia Siemens Networks posts surprise Q1 profit

HELSINKI, April 22 (Reuters) - Nokia’s telecom gear venture Nokia Siemens Networks [NSN.UL] posted a surprise profit on Thursday and repeated its forecast for no growth in the telecom equipment market this year.

Nokia Siemens Networks, a 50-50 venture of Nokia NOK1V.HE and Siemens (SIEGn.DE), has been struggling to make a profit since its 2007 start amid aggressive pricing from Asian rivals Huawei [HWT.UL] and ZTE (0763.HK).

The venture reported a January-March underlying operating profit of 15 million euros ($20.2 million), compared with a loss of 122 million a year ago and analysts’ average forecast of a loss of 62 million in a Reuters poll.

First quarter sales dropped 9 percent from a year ago to 2.72 billion euros, in line with analysts average forecast of 2.77 billion in the poll. [nLDE63C2GA]

Nokia Siemens’ larger rival Ericsson (ERICb.ST) is due to report on Friday and expected show a slight rise in its core earnings, helped by cost cuts.[nLDE63F0JZ][nLDE63E116]

(Reporting by Stockholm and Helsinki newsrooms)

((tarmo.virki@reuters.com, +358-9-680 50 235, Reuters messaging: tarmo.virki.reuters.com@reuters.net))

($1=.7439 Euro) Keywords: NOKIA SIEMENS/RESULTS

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