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<< No, I don't get up that early. Not even for a Nokia webcast or, better yet, especially for a Nokia webcast. >>
In case you still haven't heard the NOK mid-term CC, this Reuters report is reasonably comprehensive.
I tuned in rather late to the CC myself so I need to make a correction to what I stated earlier. Remarks I attributed to Jorma were actually made by Olli-Pekka Kallasvuo (CFO).
I should have noticed the lack of Brit accent but I was composing business e-mail while listening, and put it down to a poor connection.
>> Nokia Says Q4 Earnings May Top Target, Share Gains
By Paul de Bendern (Helsinki)
Alison Tudor (London)
Jan Strupczewski (Stockholm)
Reuters
Dec 11, 2001
10:55:00 AM
Update 4
Nokia, the world's largest mobile phone maker, said on Tuesday it may beat its fourth quarter earnings target as it benefits from sales of new Internet phones this Christmas.
Nokia, which makes one in three of all handsets sold around the world, said it would gain significant market share this quarter -- the most important sales period of the year for consumer electronics.
The news sent shares in Nokia, which have doubled since September 11 on signs of resilience in a tough market, 4.7 percent higher to 28.71 euros and helped boost rivals Ericsson and Siemens.
In New York Nokia was up 6.9 percent at $25.44. Ericsson's ADR rose 3.8 percent to $6.04 and global number two Motorola added 2.4 percent to $17.05.
Nokia said it expected pro forma earnings per share (EPS) for the fourth quarter to be at the upper end or even above its earlier indicated range of 0.18-0.20 euros. That is down from a level of 0.25 euros in the same quarter of 2000 when demand for cellphones reached its peak.
"Nokia has an innate ability to perform in difficult markets and the group has proved this again today," said Jamie Wood, head of European communication technology at JP Morgan.
"This statement has given the markets confidence to extend the rally in technology stocks," he added.
Nokia reiterated sales would grow by 20 percent from last quarter's 7.1 billion euros, helped by its new products and brisk demand in Europe and the United States, including demand for so-called CDMA and TDMA technology products.
The company's new range of handsets was supporting the highest margins seen in the industry, believed by some analysts to exceed 20 percent this quarter.
Chief Financial Officer Olli-Pekka Kallasvuo said Nokia managed to tweak its EPS estimate thanks to very healthy average selling prices (ASPs) for its mobile phones, market share gains, the right product mix and general cost controls.
Nokia, like rivals Motorola (MOT) and Ericsson, has been hit by the global economic slowdown.
Companies have seen orders from telecoms operators cancelled as they struggle with debts and consumers delay purchases of new phones until attractive services that give quick access to the Internet are widely available on the market.
Mobile Phone Market Stabilising
Nokia's confidence in the fourth quarter was a further sign the handset market was recovering in what is expected to be the industry's first ever decline in annual sales.
"The mobile phone market has developed according to company expectations, with fourth quarter volumes expected to reach 105-110 million units," Nokia said in its mid-quarter update.
Kallasvuo told a conference call industry ASPs for handsets, which is the price producers can charge for their phones, would be slightly lower in the fourth quarter year-on-year.
Nokia said last month it expected 380 million phones to be sold this year, down from over 400 million last year.
Nokia has responded to tougher conditions by cutting some 4,700 jobs from a 60,000-strong workforce and closing plants in a bid to drive down costs.
Nokia confirmed sales in its handset unit, which make up most of group revenue, would be flat year-on-year while networks sales would fall 20 percent year-on-year.
However, the company said mobile phone sales would grow 25 percent on the 5.27 billion euros in the third quarter.
New Phones Help Nokia Recover Market Share
Nokia is benefiting from the launch of the tiny 8310 Internet-enabled fashion phone, the 6310 professional phone as well as the 5510 youth entertainment device. Both the 8310 and the 6310 are powered with so-called GPRS technology, which offers an "always-on" Internet connection via a mobile phone.
"With the competitive pricing environment for mobile phones more stable... Nokia continues to expect significant market share gains in its mobile handset business this quarter," Nokia said.
Nokia's market share globally in the third-quarter was over 33 percent, off levels of around 35 percent earlier in the year as competitors such as Motorola and Ericsson gained ground on their new Internet-friendly phone models.
Nordea Securities senior analyst Mika Paloranta, who has a "reduce" rating on Nokia, said he expected the Finnish company to see its share rise above 36 percent this quarter.
"This is the big news today. They're gaining at the expense of the small players such as Philips (PHG) , Alcatel (CGEP) and Panasonic," he said. "Sony Ericsson should not be affected."
Separately Sony Ericsson, the world's third biggest mobile phone maker, which has been making headway with a new range of GPRS-enabled phones, said it did not expect to lose market share in the fourth quarter to its Finnish rival.
Nokia will release October-December earnings on January 24. <<
- Eric - |
