Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Alcatel (ALA) and France -- Ignore unavailable to you. Want to Upgrade?

To: larry pollock who wrote (3072)	2/27/2001 7:33:31 AM
From: larry pollock	Read Replies (1) \| Respond to of 3891

Investment Banks Lower Forecasts For Global Wireless-Phone Market By Buster Kantrow Dow Jones Newswires February 27, 2001 STOCKHOLM -- Skepticism about the global wireless-phone market spread after three investment banks lowered their sales forecasts for 2001 and warned that slower growth will hurt industry leader Nokia Corp. Deutsche Bank, Merrill Lynch and Lehman Brothers lowered their global handset-sales forecasts to below 500 million units, the lower end of the range Nokia set out in January. Each bank said the slower growth would shave the earnings of the Finnish telecommunications titan that controls more than 30% of the handset market. Merrill Lynch, New York, reduced its global handset-sales forecast to 475 million units from 510 million units, and said it was concerned that a soft handset market and pricing pressures would hurt Nokia's revenue in the short term. Merrill also cut its 2001 Nokia earnings estimate 10% to 79 European cents per share. Nokia earned 82 European cents per share in 2000. Still, Merrill said the pain of slower growth could be widespread. It slashed 2001 earnings estimates by between 12% and 16% for Sweden's Telefon AB L.M. Ericsson , France's Alcatel SA and the United Kingdom's Marconi PLC. The new global-sales forecasts come in the wake of a series of cautious statements from many phone makers, including industry No. 2 Motorola Inc., Schaumburg, Ill., which warned Friday that it may post a loss for the first quarter. Nokia has been silent since its January statement that in 2001 it expected global sales of between 500 million and 550 million handsets. That figure was a hedge on Nokia's more optimistic projections in late 2000. Yet, some analysts expect Nokia to revise its numbers again and to restate its earnings targets. A Nokia spokesman said the company hasn't altered its January forecast and that he couldn't say whether the company would. In its note Monday, Germany's Deutsche Bank cut its 2001 handset shipment forecast to 490 million units from 531 million, and said it expects shipments of 607 million units in 2002, instead of 678 million. It said 2001 sales would be hurt by inventory buildups and concerns about a slowing economy. Deutsche said the slower growth would trim 2% off projected revenues for Nokia's mobile-phone group in 2001. Lehman Brothers, New York, reduced its sales forecast for 2001 to 480 million units from 510 million units. In addition to the economy, it cited slowdowns in European-subscriber growth and delays in the rollout of new technology, such as general packet radio services, or GPRS. As of 4 p.m. Monday in New York Stock Exchange composite trading, Nokia shares rose $1.41 to $22.75 while Motorola shares fell 36 cents to $15.89 each. In Nasdaq Stock Market trading, Marconi's American depositary receipts gained 50 cents to $15.06 each. In Nasdaq over-the-counter trading, Ericsson American depositary receipts rose 25 cents to $8.50 each. In trading on the Paris stock exchange, Alcatel rose 1.50 euros to 44 euros ($40.12) a share. Write to Buster Kantrow at buster.kantrow@dowjones.com