To: 49thMIMOMander who wrote (13909 ) 7/17/2001 6:47:41 PM From: S100 Read Replies (1) | Respond to of 34857 Ericsson, Nokia Reports Will Be Scrutinized for 2nd-Half Guidance By EDWARD HARRIS Staff Reporter of THE WALL STREET JOURNAL STOCKHOLM -- Last December, Nokia Corp. Chief Executive Jorma Ollila predicted rosy handset sales in 2001 and declared, "In the mobile world, the best is yet to come." But on June 12, Nokia issued a profit warning for the second quarter. With the Finnish company preparing to release grim second-quarter results Thursday, and Telefon AB L.M. Ericsson of Sweden -- itself in the midst of an agonizing restructuring -- set to report on Friday, investors wonder whether the rest of the year will be even worse. Given the uncertainty in the technology universe and the plunge in tech stocks, they'll be focusing on Nokia, and especially any outlook it offers. For years, the world's biggest mobile-phone maker has been a standout, and until recently it has escaped most of the fallout, even as other tech companies suffered. But if Nokia predicts more tough times ahead, investors will assume the picture is as bad -- or worse -- at other technology players. While Europe's tech companies have been slowed just as in the U.S., Nokia's earnings and forecast could also reflect how deep Europe's slump actually is. Almost any result other than the expected outcome could send tech stocks soaring or plunging. "We are seeing the convergence between lagging telecom spending and poor macroeconomic factors. It's all coming together right now -- which is rather unfortunate --and it makes the whole industry foggy," says telecom analyst Susan Anthony of Credit Lyonnais in London. "So, can either of these companies give us guidance?" snip