Neko
Supreme Overlord
Jan 10, 2004, 5:40 PM
Post #1 of 1
(668 views)
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January 08, 2004 - Nokia today announced that it exceeded its sales and profit guidance for the fourth quarter of 2003.
Nokia Networks sales in the fourth quarter of 2003 were significantly higher than estimated and reached approximately EUR 1.7 billion (versus the previous guidance of EUR 1.4 billion). In addition to seasonality, this reflected stronger than expected year-end operator investments. Combined with a favorable product mix, this resulted in an exceptionally strong pro forma operating margin of approximately 12% (versus the guidance of pro forma operating profit to reach breakeven) in the fourth quarter 2003.
Nokia Mobile Phones sales in the fourth quarter of 2003 increased to approximately EUR 7 billion, up 4% year on year (versus the previous guidance of flat to slightly up) due to better than expected market development leading to strong Nokia unit volumes. Due to this and a favorable product mix, Nokia Mobile Phones' pro forma operating margin continued at the excellent level of between 24% and 25% for the quarter. At the moment, Nokia is not in a position to comment on overall mobile industry volume growth for the fourth quarter 2003. However, Nokia Mobile Phones' fourth quarter unit volumes were 55.3 million.
Total Nokia Group sales in the fourth quarter of 2003 were approximately EUR 8.8 billion, about the same level as in the previous year. The company now estimates that fourth quarter 2003 pro forma EPS (diluted) will be EUR 0.28 - 0.29 (versus the pro forma EPS (diluted) guidance of EUR 0.21 - 0.23) and that reported EPS (diluted) will be EUR 0.24 -0.25 (versus the reported EPS (diluted) guidance of EUR 0.20 - 0.22). The reported fourth quarter EPS (diluted) was negatively impacted by a goodwill impairment related to Nokia Networks.
"I'm pleased to report that Nokia achieved excellent fourth quarter results", said Jorma Ollila, Chairman and CEO of Nokia. "The strong seasonal development in both Nokia Mobile Phones and Nokia Networks exceeded even our own expectations. High volumes and an excellent mix in Nokia Mobile Phones delivered healthy sales and an average selling price that was up sequentially. Nokia Networks results were impacted by stronger than expected year-end operator investments and product mix which resulted in much stronger than expected sales and stronger than expected operating profits."
Nokia will report the fourth quarter and the full year 2003 on January 22, 2004.
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