Q1 mid-quarter update
Nokia Corporation
11 March 2003
Nokia provides mid-quarter update: EPS within guidance in the first quarter
Based on developments in the first two months of 2003, first-quarter pro forma
EPS (diluted) for the Nokia group is expected to be between EUR 0.15 and 0.17,
within earlier stated guidance. This reflects the strength of Nokia's new mobile
phone product offering and the company's overall operational efficiency, offset
by a weaker-than-expected performance by Nokia Networks.
In mobile phones, first-quarter sales are estimated to be at the low end of the
guided range of flat to 9% year-on-year growth, with strong profitability at
Nokia Mobile Phones continuing. Overall mobile phone market volumes in the first
quarter are expected to show healthy year-on-year growth for the fourth
consecutive quarter, with Nokia showing faster-than-market growth.
Sales at Nokia Networks for the first quarter are expected to decline by 15% to
20% year on year, as operators in all major regions continue to decrease the
level of their investments. As a result, first-quarter sales for the Nokia group
are expected to be slightly down year on year. Nokia Networks will post a
substantial pro forma operating loss for the first quarter, impacted by
lower-than-expected sales volumes as well as costs related to the first-phase
implementation of 3G technologies.
Nokia Networks reported operating result is expected to be positively impacted
in the first quarter by an increase of approximately EUR 220 million in the
valuation of the former MobilCom receivables, which were converted into new
instruments, as of March 3, 2003, in an agreement with France Telecom. This will
have a positive impact on Nokia's reported EPS in the first 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.
For more information:
Lauri Kivinen, Corporate Communications, tel. +358 7180 34495
Bill Seymour, Investor Relations, tel. +1 972 894 4880
Antti Raikkonen, Investor Relations, tel. +358 7180 34290
www.nokia.com
- Nokia plans a 1Q announcement for April 17, 2003.
- Results announcements for 2Q and 3Q 2003 are planned for July 17 and October
16, respectively.
- The Annual General meeting will be held on March 27, 2003
This information is provided by RNS
The company news service from the London Stock Exchange
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