Nokia sees steady profits despite slump
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HELSINKI, Finland, Mar 12, 2002 (United Press International via COMTEX) -- Cellular phone giant Nokia Corp. said Tuesday that that its net sales for the first quarter will falter, but reassured investors that its profits would increase albeit slightly from the previous quarter.
"Net sales for the first quarter are expected to be slightly lower than anticipated, but higher than expected profitability is being driven by Nokia's core strengths," the company said in a statement.
Nokia said that mobile phone sales are likely to fall between 3 percent and 7 percent. However, the biggest decline is expected in the network equipment sector, pegged to tumble 25 percent. The company said that the marked downturn would be a result of a fall in demand in the European and Chinese markets for second-generation mobile phone infrastructure.
Nevertheless, the company expects earnings per share to be unaffected.
"Earnings per share is estimated to be at the upper end or even slightly above the earlier indicated range of 0.15 euros to 0.17 euros (13 cents to 15 cents) for the first quarter," Nokia stated.
While its network sales may be facing harder times, Nokia is moving forward with launching new products. On Tuesday, the company unveiled six new products, including a mobile phone with a color screen as well as a built-in camera.
In trading on the New York Stock Exchange late morning Tuesday, Nokia's share price was down 1.41 points, or 6 percent, at $22.09.
Copyright 2002 by United Press International. |
