Nokia Has Smaller Drop in Profit

Nokia, the world’s largest maker of cellular phones, reported Friday a smaller-than-expected decline in third-quarter profit and predicted handset sales would rebound in the fourth quarter.

The Finnish company said net income fell 18% to $684 million, or 16 cents a share, the high end of Nokia’s estimate. Sales fell 7% to $6.84 billion.

The profit margin at Nokia’s mobile-phone unit unexpectedly rose from the second quarter--to 19% from 17.9%. Analysts were expecting a margin of 17%.

“This is just what you want in this environment,” said Rob Sellar, who helps manage Aberdeen Asset Management’s $1.2-billion Global Tech Fund, which includes Nokia shares. “Nokia continues to surprise all the analysts with their handset margins.”

Nokia, which sells a third of the world’s cellular phones, expects its handset sales to rise 25% in the fourth quarter from the third as it introduces new models, including one that lets users play music and video games, before the holidays. It forecast fourth-quarter earnings of 18 cents to 20 cents a share.

Although Nokia had predicted an increase in earnings in the fourth quarter from the third, the specified estimate was higher than the 17 cents analysts had expected.

Nokia’s American depositary receipts jumped $1.32 to $20.10 on the New York Stock Exchange.

Other earnings, excluding one-time gains or charges unless noted:

* Dun & Bradstreet Corp. said third-quarter earnings from continuing operations rose 20% to $28.3 million, or 35 cents a share, 2 cents better than analysts expected, with help from cost-cutting. The provider of business information said revenue fell 2.5% to $285.3 million.

* Gillette Co. said third-quarter operating profit fell 15% to $296 million, or 28 cents a share, matching analysts’ forecasts, as it spent more on advertising. The analysts’ estimate had been cut from 37cents in April.

The maker of razors, Duracell batteries and Braun appliances said sales rose 2.3% to $2.36 billion, contrasted with analysts’ expectation of a decline of 4%.

* Interpore Cross International, an Irvine medical device company, said net income for the third quarter fell 31% to $813,000, or 5 cents a share. Sales rose 15% to $12.2million.

* Intersil Corp., which makes microchips for wireless computer networking and power management, said third-quarter earnings fell 35% to $11.1 million, or 10 cents a share, as sales fell 32% to $113.4 million. The firm said it expects fourth-quarter earnings to exceed analysts’ expectations.

* K-Swiss Inc.’s third-quarter profit rose 27% to $8.07 million, or 79 cents a share, well beyond the 61-cent average estimate of analysts. The Westlake-based maker of athletic footwear said revenue grew 12% to $67.8 million.

K-Swiss also said it expects earnings of 32 cents to 40 cents a share in the fourth quarter and $2.13 to $2.21 for the year. The quarterly forecast is less than the 41 cents analysts expected, but the full-year guidance tops analysts’ forecast of $2.04.

* T. Rowe Price Group Inc. said third-quarter net income fell 27% to $50.4 million, or 39 cents a share, a penny better than analysts expected, as assets under management declined along with the slumping stock market. The mutual fund company’s revenue fell 20% to $243.6 million.

* VF Corp., maker of Lee and Wrangler jeans, said third-quarter profit was flat at $103.6 million, or 90 cents a share, as sales fell 7.7% to $1.48 billion.

* Water Pik Technologies Inc., a Newport Beach manufacturer of personal health-care products, pool products and heating systems, said third-quarter net income rose 12% to $1.9 million, or 16 cents a share. Sales grew 12% to $75.2 million.

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Bloomberg News and Reuters were used in compiling this report.