Nokia updates its 4th quarter 2008 outlook and ...
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Nokia Corporation
Stock exchange release
November 14, 2008 at 15:00 (CET+1)
Espoo, Finland - Nokia today commented on market conditions impacting
its business as well as updated its fourth quarter 2008 outlook and
gave a preliminary outlook for the full year 2009. In the last few
weeks, the global economic slowdown, combined with unprecedented
currency volatility, has resulted in a sharp pull back in global
consumer spending. The weaker consumer spending has impacted many
industries, including the global mobile device market. The mobile
device market has also been negatively impacted by the more limited
availability of credit, which has limited the purchasing ability of
some of our trade customers.
Updated Outlook for the Fourth Quarter 2008:
- As a result of the rapid change in global consumer spending, which
has impacted the mobile device market, Nokia now expects that the
industry mobile device volumes will be lower in the fourth quarter
2008 than previously expected. We now estimate fourth quarter 2008
industry mobile device volumes will be approximately 330 million.
This is sequentially up from the estimated 310 million in the third
quarter of 2008. This would result in a current estimate of industry
mobile volume of 1.24 billion in 2008, instead of the earlier
estimated 1.26 billion units, up from 1.14 billion units Nokia
estimated for 2007.
- Nokia continues to expect its mobile device market share in the
fourth quarter 2008 to be at the same level or slightly up,
sequentially. This expectation is based on our current view, external
market data and the overall competitiveness of our device portfolio.
- Nokia expects that Devices & Services sales and profitability in
the fourth quarter 2008 will be negatively impacted, due to the
aforementioned factors.
Preliminary Industry Outlook for 2009:
- Nokia's preliminary estimate is that the industry mobile device
volumes will be down in 2009 compared to 2008, impacted by the
continuing overall economic slowdown.
- Nokia and Nokia Siemens Networks preliminary estimate is that the
mobile infrastructure and fixed infrastructure and related services
market will be down in euro terms in 2009 compared to 2008.
Actions to Address the Challenging Market Environment:
In addition to the measures recently announced at Nokia and Nokia
Siemens Networks, Nokia is taking decisive action to significantly
reduce its cost base:
- Nokia has already instituted various cost saving actions.
- Nokia will curtail use of external contractors, consultants and
professional services.
- Nokia will further cut operating expenses in 2009 to respond
appropriately to the market conditions.
"Nokia believes that its advantages of scale, leading brand, superior
logistics, low cost and broad product portfolio are competitive
advantages that will enable us to distinguish ourselves from the
competition in a challenging 2009," said Olli-Pekka Kallasvuo, Nokia
CEO.
Nokia will provide more details on its 2009 estimates and cost saving
actions at its Capital Markets Day on December 4, 2008 in New York.
Nokia plans to report its Q4 and full year 2008 results on January
22, 2009.
Nokia will be hosting a conference call at 13:30 UK time (8:30 EST).
The dial-in number for media (listen only - the question and answer
session will be limited to financial analysts and investors only) is
+1 706 634 5012. Conference ID: 73906538.
The dial-in number for financial analysts and investors is US: +1 888
636 1561. Conference ID: 73906538. UK: +44 1452 560 299. Conference
ID: 73929828.
A replay of the call will be available soon after the call
completion. The replay number is US: +1 800 642 1687 or +1 706 645
9291. Conference ID: 73906538.
FORWARD-LOOKING STATEMENTS
It should be noted that certain statements herein which are not
historical facts, including, without limitation, those regarding: A)
the timing of product, services and solution deliveries; B) our
ability to develop, implement and commercialize new products,
services, solutions and technologies; C) expectations regarding
market growth, developments and structural changes; D) expectations
regarding our mobile device volume growth, market share, prices and
margins; E) expectations and targets for our results of operations;
F) the outcome of pending and threatened litigation; G) expectations
regarding the successful completion of contemplated acquisitions on a
timely basis and our ability to achieve the set targets upon the
completion of such acquisitions; and H) statements preceded by
"believe," "expect," "anticipate," "foresee," "target," "estimate,"
"designed," "plans," "will" or similar expressions are
forward-looking statements. These statements are based on
management's best assumptions and beliefs in light of the information
currently available to it. Because they 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) the deteriorating global economic
conditions and related financial crisis and their impacts on us, our
customers, suppliers, and collaborative partners; 2) competitiveness
of our product, service and solutions portfolio; 3) the extent of the
growth of the mobile communications industry; 4) the growth and
profitability of the new market segments that we target and our
ability to successfully develop or acquire and market products,
services and solutions in those segments; 5) our ability to
successfully manage costs; 6) the intensity of competition in the
mobile communications industry and our ability to maintain or improve
our market position or respond successfully to changes in the
competitive landscape; 7) the impact of changes in technology and our
ability to develop or otherwise acquire complex technologies as
required by the market, with full rights needed to use; 8) timely and
successful commercialization of complex technologies as new advanced
products, services and solutions; 9) our ability to protect the
complex technologies, which we or others develop or that we license,
from claims that we have infringed third parties' intellectual
property rights, as well as our unrestricted use on commercially
acceptable terms of certain technologies in our products, services
and solution offerings; 10) our ability to protect numerous Nokia and
Nokia Siemens Networks patented, standardized or proprietary
technologies from third-party infringement or actions to invalidate
the intellectual property rights of these technologies; 11) Nokia
Siemens Networks' ability to achieve the expected benefits and
synergies from its formation to the extent and within the time period
anticipated and to successfully integrate its operations, personnel
and supporting activities; 12) whether, as a result of investigations
into alleged violations of law by some current or former employees of
Siemens AG ("Siemens"), government authorities or others take further
actions against Siemens and/or its employees that may involve and
affect the carrier-related assets and employees transferred by
Siemens to Nokia Siemens Networks, or there may be undetected
additional violations that may have occurred prior to the transfer,
or ongoing violations that may have occurred after the transfer, of
such assets and employees that could result in additional actions by
government authorities; 13) any impairment of Nokia Siemens Networks
customer relationships resulting from the ongoing government
investigations involving the Siemens carrier-related operations
transferred to Nokia Siemens Networks; 14) occurrence of any actual
or even alleged defects or other quality issues in our products,
services and solutions; 15) our ability to manage efficiently our
manufacturing and logistics, as well as to ensure the quality,
safety, security and timely delivery of our products, services and
solutions; 16) inventory management risks resulting from shifts in
market demand; 17) our ability to source sufficient amounts of fully
functional components and sub-assemblies without interruption and at
acceptable prices; 18) any disruption to information technology
systems and networks that our operations rely on; 19) developments
under large, multi-year contracts or in relation to major customers;
20) economic or political turmoil in emerging market countries where
we do business; 21) our success in collaboration arrangements
relating to development of technologies or new products, services and
solutions; 22) the success, financial condition and performance of
our collaboration partners, suppliers and customers; 23) exchange
rate fluctuations, including, in particular, fluctuations between the
euro, which is our reporting currency, and the US dollar, the Chinese
yuan, the UK pound sterling and the Japanese yen, as well as certain
other currencies; 24) the management of our customer financing
exposure; 25) allegations of possible health risks from
electromagnetic fields generated by base stations and mobile devices
and lawsuits related to them, regardless of merit; 26) unfavorable
outcome of litigations; 27) our ability to recruit, retain and
develop appropriately skilled employees; 28) the impact of changes in
government policies, laws or regulations; and 29) our ability to
effectively and smoothly implement our new organizational structure;
as well as the risk factors specified on pages 10-25 of Nokia's
annual report on Form 20-F for the year ended December 31, 2007 under
"Item 3.D Risk Factors." Other unknown or unpredictable factors or
underlying assumptions subsequently proving to be incorrect could
cause actual results to differ materially from those in the
forward-looking statements. Nokia does not undertake any obligation
to update publicly or revise forward-looking statements, whether as a
result of new information, future events or otherwise, except to the
extent legally required.
Nokia, Helsinki - November 14, 2008
Media and Investor Contacts:
Corporate Communications, tel. +358 7180 34900
Email: press.services@nokia.com
Investor Relations Europe, tel. +358 7180 34289
Investor Relations US, tel. +1 914 368 0555
www.nokia.com
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NOKIA
P.O. Box 226<br>FIN-00045 NOKIA GROUP Espoo
WKN: 870737;
ISIN: FI0009000681; Index: DJ STOXX Large 200, DJ STOXX 50;
Listed: Nordic list (Large Cap) in THE HELSINKI STOCK EXCHANGE;
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