3rd Quarter & 9 Mths Results - Continued Growth
NOKIA CORPORATION
21 October 1999
Nokia strengthened its market position with rapid growth
and new solutions for the Mobile Information Society
Nokia reports continued strong growth and profits for the third
quarter of 1999. Net sales continued to grow rapidly and totaled EUR
5 037 million, an increase of 49% compared to the third quarter a year
ago. Operating profit increased by 38% to EUR 951 million resulting in
an operating margin of 18.9%.
Jorma Ollila, Nokia Chairman and CEO, said: 'Our performance in the
third quarter gives us every reason to be satisfied. The very strong
sales growth reflects our increased market share and the further
consolidation of our number one market position in mobile handsets. We
have a solid base to meet the demands of the Mobile Information
Society and our ambition is to continue to grow faster than the
market. I am happy to note that our net cash-flow from operations for
the first nine months of the year was positive at EUR 2 257 million,
further strengthening our strong financial position.'
'During the third quarter we launched numerous products and solutions
and made several changes to our structure. The continuing development
of our product offering as well as our structure to meet evolving
market requirements are among our core strengths.'
'Based on the very strong third quarter, we feel confident that our
full year 1999 sales growth will exceed 40%', said Ollila commenting
on the future.
EUR Million 3Q 1999 3Q Change 1-3Q 1-3Q 1998
1998 % 1999 1998
Net sales 5 037 3 375 49 13 400 8 974 13 326
Nokia Networks 1 435 1 040 38 3 933 2 988 4 390
Nokia Mobile Phones 3 437 2 179 58 8 936 5 367 8 070
Other Operations 191 194 - 2 592 748 1 014
Operating profit 951 687 38 2 600 1 639 2 489
Nokia Networks 248 221 12 748 677 960
Nokia Mobile Phones 753 468 61 2 040 959 1 540
Other Operations - 50 - 2 - 188 3 - 11
Profit before tax and 937 687 36 2 572 1 620 2 456
minority interests
Profit from continuing 638 464 38 1 724 1 095 1 680
operations
Net profit 638 464 38 1 724 1 165 1 750
EPS from continuing
operations, EUR
Basic 0.56 0.41 37 1.50 0.96 1.48
Diluted 0.54 0.39 38 1.46 0.93 1.43
NOKIA IN JANUARY - SEPTEMBER 1999
THIRD QUARTER 1999 RESULTS
(International Accounting Standards, IAS, comparisons given to the
third quarter 1998 results)
Nokia's net sales increased by 49% to EUR 5 037 million (EUR 3 375
million). Sales of Nokia Networks (formerly Nokia Telecommunications)
increased by 38% to EUR 1 435 million (EUR 1 040 million) and sales of
Nokia Mobile Phones increased by 58% to EUR 3 437 million (EUR 2 179
million). Sales of Other Operations decreased by 2% and totaled EUR
191 million (EUR 194 million).
Sales for both infrastructure solutions and mobile phones continued to
grow rapidly in all geographic regions with most rapid growth in the
Americas.
Operating profit increased by 38% to EUR 951 million (EUR 687
million), representing an operating margin of 18.9% (20.3%). Operating
profit in Nokia Networks increased by 12% to EUR 248 million (EUR 221
million), representing an operating margin of 17.3% (21.2%). Operating
profit in Nokia Mobile Phones increased by 61% to EUR 753 million (EUR
468 million), representing an operating margin of 21.9% (21.5%). Other
Operations, incorporating Nokia Communications Products, Nokia
Ventures Organization, Nokia Research Center and common Group
functions, reported an operating loss of EUR 50 million (operating
loss of EUR 2 million).
Net interest and financial expenses totaled EUR 17 million (EUR 2
million). Profit before tax and minority interests was EUR 937 million
(EUR 687 million). Profit from continuing operations was EUR 638
million (EUR 464 million). Net profit totaled EUR 638 million (EUR 464
million).
Earnings per share from continuing operations increased to EUR 0.56
(basic) and to EUR 0.54 (diluted) compared to EUR 0.41 (basic) and EUR
0.39 (diluted).
JANUARY-SEPTEMBER 1999 RESULTS
(International Accounting Standards, IAS, comparisons given to the
1998 January-September results)
Nokia's net sales increased by 49% and totaled EUR 13 400 million (EUR
8 974 million). Sales of Nokia Networks increased by 32% to EUR 3 933
million (EUR 2 988 million) and sales of Nokia Mobile Phones increased
by 66% to EUR 8 936 million (EUR 5 367 million). Sales of Other
Operations decreased by 21% and totaled EUR 592 million (EUR 748
million). During the first nine months, Europe accounted for 55% of
Nokia's net sales, Asia Pacific for 22% and the Americas for 23%. The
five single largest markets were the U.S., China, the UK, Germany and
Italy.
Operating profit increased by 59% to EUR 2 600 million (EUR 1 639
million). Operating profit in Nokia Networks increased by 11% to EUR
748 million (EUR 677 million). Operating profit in Nokia Mobile Phones
increased by 113% to EUR 2 040 million (EUR 959 million). Other
Operations reported an operating loss of EUR 188 million (operating
profit of EUR 3 million).
Net interest and financial expenses totaled EUR 27 million (EUR 24
million). Profit before tax and minority interests was EUR 2 572
million (EUR 1 620 million). Profit from continuing operations was EUR
1 724 million (EUR 1 095 million). Net profit totaled EUR 1 724
million (EUR 1 165 million).
Earnings per share from continuing operations increased to EUR 1.50
(basic) and to EUR 1.46 (diluted) compared to EUR 0.96 (basic) and EUR
0.93 (diluted). At the end of September 1999, the total number of
issued shares was 1,213,626,846.
At September 30, 1999, net debt-to-equity ratio (gearing) was -40%
(-36% at the end of 1998). During the January-September period 1999,
capital expenditures amounted to EUR 909 million (EUR 533 million).
The average number of employees during the first nine month period was
49 972. At September 30, Nokia employed a total of 53 713 people
(42 327 people at September 30, 1998).
Nokia currently has four employee stock option plans established in
1994, 1995, 1997 and 1999. The approximate number of participants in
these plans is 50 in the 1994 plan, 350 in the 1995 plan, 2 000 in the
1997 plan and 5 000 in the 1999 plan. On October 21, 1999 Nokia
applied to the Helsinki Exchanges to list the A and B warrants of the
1997 stock option plan from November 1, 1999 and the B warrants of the
1995 plan from December 1, 1999.
MAIN DEVELOPMENTS IN THE THIRD QUARTER 1999
Nokia introduced numerous new solutions and equipment paving the way
towards the Mobile Information Society during the third quarter.
Nokia's Third Generation System Solution provides a complete Wideband
Code Division Multiple Access (WCDMA) network for mobile operators
enabling personal mobile multimedia applications and services. Nokia's
Enhanced Data Rates for Global Evolution (EDGE) technology solution
increases GSM network data speeds to even beyond 400 kbit/s allowing
operators to meet the demand of mobile multimedia applications and
mass market deployment.
Nokia is driving the Wireless Application Protocol (WAP) initiative
and is a founding member of the WAP Forum, an industry association
with more than 200 members. Leading the market, Nokia was the first
manufacturer to provide end-to-end solutions for WAP. Nokia's WAP
product and concept portfolio consists of mobile phones, gateways and
servers for operator and corporate businesses, as well as support and
toolkits and WAP microbrowsers for handset manufacturers.
Nokia continued to work closely together with content and service
providers, such as media houses and banks as well as system
integrators to offer new WAP-based services through digital wireless
phones. During the third quarter Nokia signed a global cooperation
agreement with Reuters, the world's largest news and television
agency, to develop and deliver financial, sport and general news
services. Nokia and Deutsche Bank formed a partnership to develop
mobile banking services. Nokia also announced that it will partner
with Hewlett-Packard to develop and promote business-critical mobile
Internet solutions based on WAP. With Spyglass Inc., Nokia established
a worldwide distribution agreement for the Nokia WAP microbrowser.
Nokia's Broadband IP Access solution enables a wide variety of high
volume services, such as Fast Internet Access, to network operators
and Internet Service Providers (ISP). For users, this means access to
simultaneous voice and data with the use of a normal telephone or a
Voice over IP (VoIP) telephone carrying ISDN telephony on the same
line as Asymmetric Digital Subscriber Line (ADSL).
To strengthen its capabilities in Fast Internet Access technologies,
Nokia acquired Rooftop Communications Corporation in September.
Rooftop Communications is a US-based start-up company specializing in
multipoint-to-multipoint radio systems that enable wireless broadband
access to the Internet.
In August, Nokia together with other investors established
LifeChart.com to launch innovative e-health services. It combines
Nokia's health-related wireless applications business (WellMate) with
a Silicon Valley-based health monitoring company.
In October, Nokia signed an agreement to divest its fully-owned
subsidiary Salcomp Oy to a private equity fund. The initial sale price
is approximately EUR 140 million with an additional amount of
approximately EUR 13 million to be paid later based on Salcomp's
performance.
As of October, Nokia Telecommunications changed its name to Nokia
Networks and its mode of operation to better reflect its present
business scope. Nokia Networks also created a new Customer Operations
division to further sharpen the focus on carrier and ISP customers and
to broaden the range of services and system integration capabilities
for telecom, datacom and IP networks.
Nokia also combined units from Nokia Networks and Nokia Ventures
Organization into one unit called Nokia Internet Communications,
offering Nokia's Enterprise and ISP customers a wide range of products
and services as well as access to expertise in the areas of IP and
mobility.
Nokia Networks signed several GSM expansion contracts as strong
subscriber growth worldwide continued to drive mobile operators to
invest in network expansions and new value added services.
Nokia won a new GSM customer when Primatel, a new Hungarian operator,
selected Nokia to supply a complete GSM dual band network. In
addition, TeleDanmark, the leading operator in Denmark became a new
customer after choosing Nokia's dual band equipment. Nokia also signed
network expansion contracts in the Philippines, Thailand, Italy and
China, including four agreements with China Unicom to enhance its
mobile networks. In addition to a major GSM expansion deal in Italy,
Nokia also entered into an agreement for the delivery of its first
TETRA professional mobile radio network in Italy.
As data traffic increases in mobile networks and the importance of
services and applications continues to grow, several operators in
Europe and Asia have already launched High Speed Circuit Switched Data
(HSCSD) services, using Nokia's solutions. Nokia already has more than
20 HSCSD customers worldwide.
Mobile operators continued to develop their networks to deliver
advanced packet data and WAP services. During the quarter, Nokia
signed General Packet Radio Services (GPRS) contracts with operators
including M1 in Singapore and Telenor Mobil in Norway, further
strengthening its position in GPRS solutions. Nokia also launched the
Nokia Artus Messaging Platform supporting the WAP 1.1 specification
for advanced value-added messaging services for both GSM and TDMA
networks.
Nokia's Broadband Solutions businesses continued to develop strongly,
as operators invested in Asymmetric Digital Subscriber Line (ADSL)
based technologies to enable the delivery of fast Internet services.
Nokia signed agreements with Covad and Picus Communications in the
U.S. to supply equipment for approximately 2 million new Digital
Subscriber Line connections.
During the quarter, Nokia strengthened its product portfolio with a
range of innovations for fixed and mobile networks. Nokia launched its
complete third generation network solution, providing a total WCDMA
network, with complementary services, for mobile operators. The system
includes the new cutting-edge triple-mode Nokia UltraSite base station
and site solution supporting GSM, EDGE and WCDMA.
Nokia also introduced the Nokia DX 220 IP Access solution with the
Nokia Always on Net service enabling operators and Internet Service
Providers the ability to offer a constant connection to the Internet,
integrating the Public Switched Telephone Network (PSTN) and IP
services. In addition, Nokia introduced the Nokia MW111, an ADSL and
ADSL.Lite modem for wireless Internet access in the home or office,
combining fast Internet and Wireless LAN technologies. Nokia also
introduced the Nokia TariffZone and Nokia HomeZone solutions, which
allow network operators to address new market segments and revenue
sources.
To date, Nokia has not experienced any significant delays in orders
for certain software upgrades as a result of operators delaying
upgrades over the change of the millennium.
Nokia Mobile Phones' strong sales volume growth continued and further
solidified Nokia's leadership in all market areas. The growth of the
global mobile phone market continued and Nokia estimates that there
are presently approximately 420 million mobile subscribers worldwide.
During the third quarter, Nokia started volume deliveries of the Nokia
3210 to all GSM 900/1800 markets and deliveries of the Nokia 6090 GSM
car phone. Deliveries of the Nokia 8850, the new premium category
mobile phone, and the Nokia Card Phone 2.0, the world's first dual-
band (GSM 900/1800) high speed data terminal, are expected to start
during the fourth quarter.
WAP-based products, services and applications are emerging in various
markets. Nokia started deliveries of the Nokia 7110 media phone at the
end of the quarter. Nokia also expanded the Nokia 7100 media phone
family with the Nokia 7160 (TDMA 800/1900/AMPS) and the Nokia 7190
(GSM 1900) models, which were introduced for the American markets in
September. The phones are expected to be available during the first
half of 2000.
To meet the strong demand for mobile phones in the U.S. market, Nokia
announced in August that it will continue to increase the
manufacturing capacity in Fort Worth, Texas by converting the GSM base
station manufacturing facility to mobile phone production. This
additional capacity is expected to be available by the end of June
2000, when the transfer of the manufacture of network base stations
from Fort Worth to Finland and the UK has been completed.
Enabling the development of even smaller and lighter mobile phones,
Nokia introduced its first ultra-thin Lithium Polymer (Li-Polymer)
battery in September. These batteries are compatible with the present
Nokia 5100, 6100 and 7100 series digital phones as well as the Nokia
640 (NMT 450), 650 (NMT 450) and Nokia RinGO (ETACS) analog mobile
phones.
Other Operations. Nokia Ventures Organization continued to demonstrate
its wireless LAN solution, a key component of Nokia's Global IP
Mobility strategy. The high rate wireless LAN solution comprises
Nokia's wireless LAN access points, wireless LAN cards and
sophisticated software providing seamless extension to a wired
network. Nokia also announced its participation in two initiatives
aimed at ensuring vendor interoperability, Wireless Ethernet
Compatibility Alliance (WECA) and the HiperLAN2 Global Forum.
During the quarter, Nokia announced several enhancements to its IP
Telephony portfolio in the areas of scalability, resiliency and
functionality. Nokia introduced IPRelay, the world's first two-line
personal gateway network peripheral that allows a connection from an
IP network to the PSTN or an existing Private Branch Exchange (PBX).
Nokia continued to strengthen its position in the high-end IP routing
hardware market with a virtual private network (VPN) solution. In
September, Nokia announced the addition of high availability virtual
private networking functionality in its VPN 200 line of security
appliances.
STATEMENT BY JORMA OLLILA, CHAIRMAN AND CEO:
Our performance in the third quarter of the year gives us every reason
to be satisfied. The very strong sales growth reflects our increased
market share and the further consolidation of our number one market
position in mobile handsets. We have a solid base to meet the demands
of the Mobile Information Society and our ambition is to continue to
grow faster than the market. I am happy to note that our net cash-flow
from operations for the first nine months of the year was positive at
EUR 2 257 million, further strengthening our strong financial
position.
During the third quarter we launched numerous products and solutions
and made several changes to our structure. The continuing development
of our product offering as well as our structure to meet evolving
market requirements are among our core strengths. We prepared the
divestment of Salcomp, a profitable and growing business which was not
central to our Global IP Mobility strategy. We reorganized Nokia
Networks (formerly Nokia Telecommunications) to be better prepared to
meet emerging customer needs. Finally, we created Nokia Internet
Communications by combining units from Nokia Networks and Nokia
Ventures Organization, to strengthen our offering for corporate
customers and Internet Service Providers.
As we head towards the Mobile Information Society, we see that the two
dominating user requirements continue to be those of freedom of
mobility and Internet information and services. During the past weeks,
we have been delighted at the pace of progress supporting our Global
IP Mobility strategy. At the recent Telecom '99 exhibition in Geneva,
we saw the continued convergence of IT and datacom industries with
telecommunications well demonstrated by not only our new solutions and
products but also by those of other industry players. Our success to
date gives us confidence to continue to lead the way towards the
convergence of the Internet and mobility - putting the net in your
pocket.
There has been a growing number of WAP service introductions during
the third quarter. With WAP terminals, such as the Nokia 7110 media
phone, we expect to see an increasing number of commercial product
offerings. We believe that we are well positioned to provide complete
WAP business solutions, from application software and development to
terminals. We intend to remain at the forefront of this development.
Operators in Europe and Asia are showing increasing interest for both
GPRS and HSCSD solutions. We have successfully increased the number of
our customers for these technologies. In fast Internet solutions, ADSL
based technologies have increased the rate of growth. Having already
signed several ADSL agreements, we believe we have a very solid
position in this emerging market.
With the mobile phone subscriber base now estimated at approximately
420 million users, we continue to develop phones to meet the demands
of new user segments. In October, we introduced the Nokia 8210 that is
targeted to fashion-conscious consumers. It is our lightest phone to-
date and also the lightest GSM phone in the world. At the same time,
we are acquiring competencies and forming alliances for the emerging
category of media phones.
Our actual results always depend both on our performance and on a
variety of external factors, including general economic and industry
conditions. However, based on the very strong third quarter, we feel
confident that our full year 1999 sales growth will exceed 40%.
CONSOLIDATED PROFIT AND LOSS ACCOUNT, IAS, EUR million
(unaudited)
7-9/99 7-9/98 1-9/99 1-9/98 1-12/98
Net sales 5 037 3 375 13 400 8 974 13 326
Cost of goods sold -3 165 -2 046 -8 277 -5 559 -8 299
Research and -429 -272 -1 176 -787 -1 150
development expenses
Selling, general -477 -365 -1 303 -975 -1 368
and administrative
expenses
Amortization -15 -5 -44 -14 -20
of goodwill
Operating profit 951 687 2 600 1 639 2 489
Share of results of 3 2 -1 5 6
associated companies
Financial income -17 -2 -27 -24 -39
and expenses
Profit before tax and 937 687 2 572 1 620 2 456
minority interests
Tax -281 -209 -807 -488 -737
Minority interests -18 -14 -41 -37 -39
Profit from 638 464 1 724 1 095 1 680
continuing operations
Cumulative prior year - - - 70 70
net effect of change
in accounting policies
Net profit 638 464 1 724 1 165 1 750
Earnings per share, EUR
Continuing operations
Basic 0.56 0.41 1.50 0.96 1.48
Diluted 0.54 0.39 1.46 0.93 1.43
Net profit
Basic 0.56 0.41 1.50 1.02 1.54
Diluted 0.54 0.39 1.46 0.99 1.49
Average number of shares
(1 000 shares)
Basic 1 148 688 1 139 524 1 147 857 1 137 608 1 138 341
Diluted 1 185 263 1 175 843 1 184 190 1 172 361 1 173 301
Depreciation 174 131 458 371 509
and amortization, total
Currency rate September 30, 1999,
1 EUR = 1.037 USD, 1 EUR = 5.94573 FIM
NET SALES BY BUSINESS GROUP, EUR million
(unaudited)
7-9/99 7-9/98 1-9/99 1-9/98 1-12/98
Nokia Networks 1 435 1 040 3 933 2 988 4 390
Nokia Mobile Phones 3 437 2 179 8 936 5 367 8 070
Other Operations 191 194 592 748 1 014
Inter-business group -26 -38 -61 -129 -148
eliminations
Nokia Group 5 037 3 375 13 400 8 974 13 326
OPERATING PROFIT BY BUSINESS GROUP, EUR million
7-9/99 7-9/98 1-9/99 1-9/98 1-12/98
Nokia Networks 248 221 748 677 960
Nokia Mobile Phones 753 468 2 040 959 1 540
Other Operations -50 -2 -188 3 -11
Nokia Group 951 687 2 600 1 639 2 489
CONDENSED CASH FLOW STATEMENT, IAS, EUR million
(unaudited)
1-9/99 1-9/98 1-12/98
Net cash from operating activities 2 257 1 178 1 687
Net cash used in investing activities -989 -542 -780
Net cash used in financing activities -902 -423 -63
Net increase in cash and cash equivalents 366 213 844
Cash and cash equivalents at 2 966 2 045 2 047
beginning of period
Cash and cash equivalents 3 332 2 258 2 891
at end of period
Dividends
Net cash used in financial activities 1-9/99 includes
dividends paid EUR 579 million (1-9/98 EUR 369 million).
Currency rate September 30, 1999,
1 EUR = 1.037 USD, 1 EUR = 5.94573 FIM
CONSOLIDATED BALANCE SHEET, IAS, EUR million
(unaudited)
30.9.1999 30.9.1998 31.12.1998
ASSETS
Fixed assets and other
non-current assets
Intangible assets 743 406 484
Property, plant and 1 794 1 236 1 331
equipment
Deferred tax assets 285 253 196
Other assets 275 218 209
3 097 2 113 2 220
Current assets
Inventories 1 791 1 356 1 292
Receivables 4 485 3 001 3 631
Short-term investments 2 543 1 809 2 165
Bank and cash 789 449 726
9 608 6 615 7 814
Total assets 12 705 8 728 10 034
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity 6 372 4 475 5 109
Minority interests 82 73 63
Long-term liabilities
Long-term interest bearing 275 168 257
liabilities
Deferred tax liabilities 86 86 88
Other long-term liabilities 47 46 64
408 300 409
Current liabilities
Short-term borrowings and current
portion of long-term debt 452 502 760
Accounts payable 2 271 1 144 1 357
Accrued expenses 3 120 2 234 2 336
5 843 3 880 4 453
Total shareholders' equity and 12 705 8 728 10 034
liabilities
Interest-bearing liabilities 727 670 1 017
Shareholders' equity per share, EUR 5.54 3.92 4.45
Number of shares (1000 shares)* 1 149 305 1 140 189 1 146 871
(split-adjusted)
* Shares owned by Group companies are excluded.
Currency rate September 30, 1999,
1 EUR = 1.037 USD, 1 EUR = 5.94573 FIM
SHAREHOLDERS' EQUITY, EUR million
(unaudited)
Share Share Treasury Other Trans- Retained Total
capital issue shares re- lation earnings
premium serves differen-
ces
Balance at 252 803 -110 2 182 2 491 3 620
December 31,
1997
Share issue 1 54 55
Dividend -378 -378
Translation 2 2
differences
Other -1 10 9
increase/
decrease, net
Net profit 1 166 1 166
Balance at 253 857 -110 1 184 3 289 4 474
September 30,
1998
Balance at 255 909 -110 1 182 3 872 5 109
December 31,
1998
Share issue 61 61
Bonus issue 36 -36 0
Dividend -586 -586
Translation 35 35
differences
Other 29 29
increase/
decrease, net
Net profit 1 724 1 724
Balance at 291 934 -110 1 217 5 039 6 372
September 30,
1999
COMMITMENTS AND CONTINGENCIES, EUR million
(unaudited)
GROUP
30.9.1999 30.9.1998 31.12.1998
Collateral for own
commitments
Mortgages 6 6 6
Assets pledged 7 7 9
Collateral given on
behalf of other companies
Mortgages - - 1
Contingent liabilities on
behalf of Group companies
Other guarantees 389 249 283
Contingent liabilities on
behalf of associated companies
Guarantees for loans - 1 1
Contingent liabilities on
behalf of other companies
Guarantees for loans 160 73 84
Other guarantees - 1 -
Leasing obligations 590 413 463
Currency rate September 30, 1999,
1 EUR = 1.037 USD, 1 EUR = 5.94573 FIM
NOTIONAL AMOUNTS OF DERIVATIVE FINANCIAL INSTRUMENTS, EUR million 1)
(unaudited)
30.9.1999 30.9.1998 31.12.1998
Foreign exchange forward 8 874 13 659 15 638
contracts 2) 3)
Currency options bought 1 106 870 741
Currency options sold 1 288 1 267 876
Interest rate forward and 314 443 -
futures contracts 2)
Interest rate swaps 200 71 67
Interest rate options bought - 17 -
1) The notional amounts of derivatives summarized here do not
represent amounts exchanged by the parties and, thus are not a
measure of the exposure of Nokia caused by its use of derivatives.
2) Notional amounts outstanding include positions, which have been
closed off.
3) Notional amount includes contracts used to hedge the net
investments in foreign subsidiaries.
Currency rate September 30, 1999,
1 EUR = 1.037 USD, 1 EUR = 5.94573 FIM
It should be noted that certain statements herein which are not
historical facts, including, without limitation those regarding 1) the
timing of product deliveries; 2) the Company's ability to develop and
provide new products, solutions, applications, services and
technologies; 3) expectations regarding market growth and
developments; 4) the impact of Year 2000 issues, including the extent
and timing of such issues; 5) the Company's positioning to meet market
demands and developments; 6) the Company's ability to remain at the
forefront of market developments in particular in complete WAP
business solutions; 7) expectations for sales growth; and 8)
statements preceded by 'believes', 'expects', 'anticipates',
'foresees', or similar expressions, are forward-looking statements.
Because such statements involve risks and uncertainties, actual
results may differ materially from the results currently expected by
the Company. Factors that could cause such differences include, but
are not limited to 1) general economic conditions, such as the rate of
economic growth in the Company's principal geographic markets or
fluctuations in exchange rates; 2) industry conditions, such as the
strength of product demand, the intensity of competition, pricing
pressures, the acceptability of new product introductions, the
introduction of new products by competitors, changes in technology or
the ability of the Company to source components from third parties
without interruption and at reasonable prices and the financial
condition of the Company's customers; 3) operating factors, such as
continued development of an appropriate organizational
structure,continued success of manufacturing activities and the
achievement of efficiencies therein, continued success of product
development or inventory risks due to shifts in market demand; 4) the
risks, costs and uncertainties (including lack of available
information and difficulties in addressing and identifying Year 2000
issues) associated with Year 2000 issues as well as the failure of
suppliers to identify, disclose and address Year 2000 issues
accurately and on a timely basis; as well as 5) the risk factors
specified in the Company's Form 20-F for the year ended December 31,
1998.
NOKIA
Helsinki, October 21, 1999
For more information:
Lauri Kivinen, Senior Vice President, Corporate Communications,
tel. + 358 9 1807 495
Martin Sandelin, Vice President, Investor Relations,
tel. + 1 972 894 4880
Ulla James, Assistant Vice President, Investor Relations,
tel. + 358 9 1807 290
www.nokia.com
Nokia will report its 4Q and whole year 1999 results on
February 1, 2000.
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