Thursday October 19, 3:04 am Eastern Time
Nokia says mobile outlook unchanged
(UPDATE: Adds details, analyst comments)
By Brett Young
HELSINKI, Oct 19 (Reuters) - Finland's Nokia , the world's largest mobile phone maker, reported strong third-quarter earnings on
Thursday and reaffirmed its growth outlook, easing recent concern over a possible slowdown in the world mobile market.
Nokia's third-quarter pre-tax profit rose 42 percent year-on-year to 1.34 billion euros ($1.14 billion). Mobile phone sales rose 59 percent to 5.46 billion euros, with
the division's operating profit up 42 percent to 1.07 billion euros.
``The strong third quarter gives us confidence in achieving our growth, profitability and market share targets for 2000,'' Nokia Chief Executive Jorma Ollila said.
``In terms of EPS, we are heading towards a record-breaking level in the fourth quarter of 2000.''
Nokia shares were quoted up 14.5 percent at 41.00 euros in pre-market trading.
World stock markets have recently been shaken by a series of statements from mobile phone makers on possible slowing growth in the market. U.S. maker Motorola
(NYSE:MOT - news) last week cut its earnings estimates for the next two years due in part to slower projected growth.
Sweden's Ericsson , the world's number three mobile maker, reports third-quarter results on Friday.
Ollila reaffirmed Nokia's estimate of over 400 million mobile phones to be sold globally in 2000 by all producers, and said some 550 million units would be sold in
2001. He also reiterated the company's estimate of one billion handsets in 2002.
Analysts said the figures were a positive surprise given the sector's recent gloom, and showed Nokia's grip on the mobile phone market was tightening.
``This was a spectacular result, clearly above forecasts, and it shows that Nokia took a lot of market share in Q3, and it will take more market share in the fourth
quarter,'' said Mika Paloranta, analyst at ArosMaizels.
``This is a totally different story from anyone else in the sector... problems with the others in the sector are clearly specific just to them,'' he said.
The third-quarter figures, announced a week earlier than expected in a surprise move, were lower than Nokia's record-breaking second-quarter figures, but the
company had warned third-quarter earnings would be weaker due to the introduction of new phones and seasonal factors. |
