Top Financial News (From Bloomberg)
Thu, 22 Apr 1999, 6:41am EDT
Nokia Profit Rose 50% in 1st Quarter, Exceeding Expectations; Shares Gain
Market Reaction
Substantial rise. Nokia Oyj, the world's No. 1 cellular
phone maker, said first-quarter profit rose 50 percent to 505
million euros ($537 million) from 336 million in the year-
earlier period. The Finnish company was expected to report a 24
percent climb to 418 million euros, according to the average
forecast of 13 analysts polled by Bloomberg News, with estimates
ranging from 376 million euros to 521 million euros. The stock
recently traded at 75.7 euros, up from 70.25 euros yesterday and
from 71 euros before the report.
Behind the Numbers
Nokia, which last year passed Motorola Inc. as the world's
top cellular phone company, has experienced strong demand after
it unveiled a range of new phones last year, notably the 5100
series which wasn't on sale until after the first quarter of
last year. While Nokia hasn't released any significant new
phones since the 5100 series hit the shelves in the second
quarter, it will start shipping the new low-end 3210 series this
quarter.
Continued strong sales of cellular networks is also likely
to fuel profit.
What the Experts Say
''Some phones weren't yet available in the year-earlier
period,'' said Michael Schroeder, an analyst at Opstock
Securities in Helsinki. He expects tougher competition from
Motorola and Sweden's Ericsson AB, the world No. 3, will prevent
Nokia from gaining further market shares this year.
Stock Performance
Before today, the stock had risen 35 percent since the
start of the year, having more than trebled last year. The
Bloomberg 500 telecommunication equipment sub-index had climbed
21 percent since the beginning of the year. It gained 67 percent
last year.
Previous Market Reaction
Nokia's shares rose 0.8 percent on Jan. 29 after the
company said fourth-quarter profit rose a greater-than-expected
72 percent to 584 million euros. |
