Nokia Siemens repeats 10 pct margin target-report

STOCKHOLM, Aug 28, 2008 (Reuters via COMTEX) -- SI | Quote | Chart | News | PowerRating -- Telecom network gear maker Nokia Siemens Networks [NSN.UL] aims to reach a 10 percent operating profit margin by the end of 2009, a Swedish business daily quoted its top executive as saying on Thursday.

Telecoms network equipment makers are facing fierce competition for new business, as demand is subdued and prices fall.

"I think this business has changed forever. The market has matured, the consolidation has taken place," CEO Simon Beresford-Wylie told Dagens Industri.

"We aim at a 10 percent operating margin by the end of next year. So it's 10 percent, not 20," he said.

Nokia Siemens previously commented on the 10 percent target last December.

Nokia Siemens' underlying operating profit margin increased to 6.7 percent in April-June from 2.4 percent in the previous quarter, helped by cost cuts and strong sales growth.

The joint venture of Finland's Nokia and Germany's Siemens has said it has walked away from deals as it focuses on margins and cash flow.

Leading players Ericsson , Nokia Siemens and Alcatel-Lucent have been increasingly challenged by Chinese vendors including Huawei Technologies [HWT.UL] and ZTE Corp in recent years.

(Editing by Erica Billingham) ($1=.6761 Euro) Keywords: NOKIASIEMENS/MARGIN

tf.TFN-Europe_newsdesk@thomsonreuters.com ajb

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