Nokia 2Q Mid-Quarter update
Nokia Corporation
10 June 2003
PRESS RELEASE
June 10, 2003
Nokia expects EPS within guidance for the second quarter
Nokia today provided a scheduled mid-quarter update to the company's business
outlook for the second quarter 2003.
Based on developments in the first two months of the second quarter, pro forma
EPS (diluted) for the Nokia group is expected to be within the previously guided
range of EUR 0.13 and EUR 0.16. This largely reflects continued strong mobile
phone operating margins and includes a previously stated restructuring charge of
EUR 350 to 400 million in the company's network infrastructure business. Nokia's
reported EPS (diluted) is expected to be between EUR 0.12 and EUR 0.15.
In mobile phones, second-quarter sales growth is expected to be positive but at
the low end or below the guided range of 4% to 12% year on year, with sales
growth slightly less for the Nokia Group. Sales reflect continued general
economic weakness in Europe and the US, the impact of currency fluctuations, and
the effect of SARS on consumer behaviour, especially in China. At Nokia Mobile
Phones, strong profitability is expected to continue. Nokia's market share for
the second quarter is estimated to be higher than the first quarter, 2003.
Second-quarter sales at Nokia Networks are estimated to decrease by 0 to 5% year
on year, as operators in all major regions continue to decrease their
investments. Pro forma operating profit for Nokia Networks, if the restructuring
charge were excluded, is estimated to be close to breakeven in the second
quarter.
It should be noted that certain statements herein which are not historical
facts, including, without limitation, those regarding A) the timing of product
deliveries; B) our ability to develop and implement new products and
technologies; C) expectations regarding market growth and developments; D)
expectations for growth and profitability; and E) statements preceded by
'believe,' 'expect,' 'anticipate,' 'foresee' or similar expressions, are
forward-looking statements. Because these statements involve risks and
uncertainties, actual results may differ materially from the results that we
currently expect. Factors that could cause these differences include, but are
not limited to: 1) developments in the mobile communications market including
the continued development of the mobile phone replacement market and the timing
and success of the roll-out of new products and solutions based on 3G and
subsequent new technologies; 2) demand for our products and solutions; 3) the
development of the mobile software and services market in general; 4) the
availability of new products and services by network operators; 5) market
acceptance of new products and service introductions; 6) the intensity of
competition in the mobile communications market and changes in the competitive
landscape; 7) the impact of changes in technology; 8) general economic
conditions globally and in our most important markets; 9) pricing pressures; 10)
consolidation or other structural changes in the mobile communications market;
11) the success and financial condition of the Company's partners, suppliers and
customers; 12) the management of the Company's customer financing exposure; 13)
the success of our product development; 14) our success in maintaining efficient
manufacturing and logistics as well as high product quality; 15) the ability of
the Company to source quality components and research and development without
interruption and at acceptable prices; 16) our ability to have access to the
complex technology involving patents and other intellectual property rights
included in our products and solutions; 17) inventory management risks resulting
from shifts in market demand; 18) fluctuations in exchange rates, including, in
particular, the fluctuations between the euro, which is our reporting currency,
and the US dollar and the Japanese yen; 19) the impact of changes in government
policies, laws or regulations; as well as 20) the risk factors specified on
pages 11 to 18 of the Company's Form 20-F for the year ended December 31, 2002.
Media and Investor Contacts:
Lauri Kivinen, Corporate Communications, tel. +358 7180 34495
Bill Seymour, Investor Relations, tel. +1 469 569 8534
Antti Raikkonen, Investor Relations, tel. +358 7180 34290
www.nokia.com
- Nokia plans a 2Q announcement for July 17, 2003.
- Results announcements for 3Q and 4Q 2003 are planned for October 16,
2003 and January 22, 2004, respectively.
This information is provided by RNS
The company news service from the London Stock Exchange
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