re: Impact of world events on Nokia
>> Nokia Sees No Major Impact On Its Business
Reuters
19 September 2001
Nokia said on Tuesday the attacks in the United States last week have had no major impact on operations of the world's largest mobile phone maker, adding that logistics were returning to normal.
Some 70 percent of Nokia's total sales come from handsets.
"I would say there is no major impact for Nokia operations overall. We have nine (mobile phone) factories and one of those is in the United States," said Nokia spokeswoman Maija Tommila.
"I think we are still in a situation when it is too early to comment on what the impact would be in terms of figures or sales," she told Reuters by telephone.
The closure of U.S. airports and halting of air traffic for several days after last Tuesday's hijackings in New York and Washington affected shipments from companies like Nokia.
Some analysts feared that too long disruptions in Nokia's logistics network could have had significant effects on the company's ability to deliver to customers, especially in the United States, because it is such a big supplier of cellphones.
Tommila said production at Nokia's nine mobile phone plants on three continents, including the one plant in the United States, were returning to normal levels with no major delays seen.
Logistics at Nokia's networks equipment, a division which makes up about 30 percent of total group sales, had been less affected by the U.S. attacks, she said. Nokia has nine plants for the networks unit, making a total of 18.
The Finnish company has a 35 percent share of the global handset market, more than double that of its nearest rival Motorola, and it is expected to produce around 140 million phones globally this year.
Many of those handsets are destined for the United States.
In the U.S., phones are shipped across the country mostly on trucks and the same was the case in Europe, another key market for Nokia.
Last year, the United States weas Nokia's biggest market, with sales of 5.31 billion euros ($4.91 billion) out of total sales of 30.38 billion. China was its second biggest market.
Hours before Tuesday's deadly attacks, which have left more than 5,000 people dead or missing, Nokia reaffirmed its third-quarter earnings per share target of 0.14-0.16 euros, helped by U.S. demand, but said it would see lower overall sales.
Nokia shares ended 1.2 percent higher at 17.16 euros, slightly outperforming a Helsinki bourse. <<
- Eric - |
