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Technology Stocks : Nokia (NOK) -- Ignore unavailable to you. Want to Upgrade?

To: Eric L who wrote (17877)	1/17/2002 1:58:10 PM
From: Eric L	Read Replies (1) \| Respond to of 34857

>> Reuters: Nokia Seen Reaching Q4 Profit Target, Q1 Uncertain Brett Young Reuters Helsinki January 17, 2002 Nokia, the world's largest mobile phone maker, is expected to post drop in fourth-quarter profits in line with its forecasts, but its near-term outlook remains cloudy in the face of grim market conditions, a Reuters poll showed. Nokia, the only profitable wireless equipment maker among top-tier players, is expected to post a fourth-quarter pro forma pre-tax profit of 1.38 billion euros ($1.22 billion), down 22 percent year-on-year, with diluted earnings per share at 0.20 euros. Nokia and its key rivals Motorola (MOT) and Ericsson have been hit by the global economic slowdown and especially by weaker demand for wireless equipment, particularly from telecoms operators. Nokia will report on January 24, two days after loss-making Motorola but a day before Ericsson, which is also making losses. Nokia has already said it will meet its fourth-quarter targets. Last month it said it would meet or exceed its pro forma EPS guidance of 0.18-0.20 euros, down from 0.25 euros a year ago. The Finnish firm also said then that sales would rise 20 percent on the third quarter, with sales at its key handset unit almost flat year-on-year but up 25 percent on the third quarter. Analysts were focusing on Nokia's comments about the first and second quarters, which are expected to remain weak due to the struggling world economy, and poor demand for phones, particularly expensive mobile Internet phones. "Our expectations are not good for the first quarter... (Nokia) may give a small warning on revenues," said Michael Schroder, an analyst at Finnish brokerage Opstock. "We remain concerned with the global handset market in the first half of 2002 and with Nokia's product mix in the first quarter," investment bank Merrill Lynch said in a research note. Excess Phones In Shops? Analysts said they wanted news on how quickly phones were being sold as some reports suggested not all handsets shipped to retailers had been bought during the key Christmas quarter. This could hit prices in the typically weak first quarter and also lead to fewer orders by cash-strapped operators. Analysts still expect Nokia to have gained market share in mobile phones in the fourth quarter, with some saying it may have boosted it by as much as three percentage points to around 37 percent -- more than double its nearest rival Motorola. Nokia's network unit was expected to stay weak, like the industry, with the poll calling for flat operating profits in 2002 after a forecast 28 percent fall in 2001. The industry has been hit by the fall in demand, with Ericsson, the leader in mobile networks, predicting network sales to fall by up to 10 percent this year. But analysts said they expected Nokia to weather the storm better than its peers thanks to its relatively strong handset mix, orders for third-generation networks and the shift by some U.S. carriers to the more widely used GSM standard, where Nokia and Ericsson are strong. << - Eric -