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

To: Eric L who wrote (19563)	4/15/2002 9:21:16 AM
From: Eric L	Read Replies (1) \| Respond to of 34857

re: DJ Earnings Preview >> Nokia Likely To Lower Targets For 2002 Buster Kantrow Dow Jones Newswires Monday April 15, 2001 (This story was originally published Friday) Nokia Corp. (NYSE: NOK) is expected to lower its sights for 2002 when it reports first-quarter results Thursday that will again outshine those of its peers. The Finnish company, the world's largest manufacturer of mobile phones, has already warned that its sales of equipment for mobile telephony networks have been running short of expectations. As a result, it is likely to cut its forecast that network sales will increase 15% in 2002 and also to temper expectations for its overall sales growth this year. Network sales account for roughly a fifth of Nokia's total revenue. At a time when many of its telecom-equipment counterparts are struggling to limit losses, Nokia is expected to report a pro forma net profit of around EUR800 million, based on a survey of seven analysts by Dow Jones Newswires. Pro forma net profit was EUR1.046 billion in the same period the previous year. In its pro forma calculations, Nokia excludes goodwill amortization and charges that it describes as non-recurring. Nokia's report will, as always, be closely watched. The Finnish group supplied one out of every three mobile phones sold worldwide last year and its outlook is often seen as a broader barometer of the health of the telecom sector. Investors are braced for bad news, amid numerous signs that a rebound in technology and telecom spending could be delayed. Sentiment has also been hurt by lukewarm reviews of Nokia's newest models and reports of faulty displays on some phones, a problem the company says has been solved. Nokia's shares have fallen more than 25% since mid-March to their lowest levels in nearly six months. At 1150 GMT , its shares were unchanged on the day at EUR20.92 after falling as low as EUR20.42 earlier Friday. Any move by Nokia next week to trim its outlook on the phone side will further unsettle investors. "The (handset) market is not so strong, so maybe their global market forecast is too high," said Jussi Hyoty, an analyst with FIM Securities in Helsinki . But Johan Carlstroem, an analyst at Handelsbanken in Stockholm , said he believes that Nokia is confident that the market will pick up through the year, and will reiterate its predictions that 420 million to 440 million mobile phones will be sold worldwide this year and that its phone unit's revenue will grow by 15%. He said the closely watched operating margins at Nokia's phone unit may also surprise on the upside next week, topping 20%. Analysts have said Nokia is benefiting from relatively stable phone prices and its ability, given its market dominance, to demand lower component costs from its suppliers. "I think they will show pretty clearly on Thursday that they are doing quite OK on the mobile phone side," Carlstroem said. Nokia said last month that it expects to report pro forma earnings per share at the top end of or slightly above its January forecast of EUR0.15 to EUR0.17, even though it said sales were likely to be more than 10% below its first- quarter 2001 sales of EUR8.01 billion. The market is expecting EPS of EUR0.17 on sales of EUR7.20 billion, according to a consensus of the analysts surveyed. In the first quarter of 2001, Nokia reported EPS of EUR0.22. Nokia's report is due around 0900 GMT Thursday. Company Web site: nokia.com - Eric -