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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (6479)	7/17/2003 8:21:28 AM
From: Proud_Infidel	Read Replies (1) \| Respond to of 25522

UPDATE - Nokia warns of lower Q3 earnings, share plunges Thursday July 17, 7:08 am ET By Brett Young (Adds details, share price reaction) HELSINKI, July 17 (Reuters) - Shares in the world's top cellphone maker Nokia (NOK1V.HE) plunged on Thursday after it posted weaker second quarter earnings and warned a soft dollar would whack sales and profits at its main handset unit. The weak outlook confirms handset makers are still grappling with slow growth due to uneven demand and a reluctance of consumers to buy expensive models as economies remain shaky. Nokia's reiterated forecast of 10 percent industry growth is now based on hopes for the seasonal sales uptick at Christmas. "Sales of Nokia mobile phones in the third quarter are expected to be flat or slightly down year-on-year, largely due to a major depreciation of the U.S. dollar compared with the same period in 2002," the company said in a statement. Nokia, whose mobile phone unit generates 78 percent of sales and all of the firm's profits, forecast overall pro forma earnings of 0.15-0.17 euros per share in the third quarter versus 0.18 euros a year earlier. At 1016 GMT the share was off 10.6 percent at 14.08 euros, dragging the Dow Jones Stoxx Tech index (Zurich:^SX8P - News) down by more than six percent and slashing eight billion euros ($9 billion) from the Finnish firm's market capitalisation. For the second-quarter to end-June, analysts said they were disappointed by the performance of the handset business, which produces almost two out of every five phones sold worldwide. Operating profit at the mobile phones unit (NMP), although up nine percent year-on-year to 1.28 billion euros, missed all analysts' expectations. "Second-quarter mobile phone sales were lower than I had expected, and this is compounded by weakness in other areas," said analyst Raj Karia at Canaccord, who cut his Nokia rating to "underweight" from "buy after the result. Analyst Thomas Langer at WestLB said while profitability at the firm's handsets division was solid in the quarter, the outlook was only going to get tougher as rivals beef up. "We foresee increased competition in the second half as more competitors launch rival models." Nokia's (Stockholm:NOKI.ST - News; NYSE:NOK - News) result comes after U.S. rival Motorola (NYSE:MOT - News) on Tuesday posted weaker second-quarter sales and reeled in financial forecasts in the face of tough competition in China. Networks rival Ericssion (Stockholm:ERICb.ST - News) of Sweden will report earnings on Friday. MARGINS FALL AT HANDSETS UNIT Nokia's second-quarter pro forma earnings fell to 0.14 euros per share, as expected in a Reuters poll and down from 0.19 euros a year ago due to a restructuring charge at Nokia Networks, the smaller of the firm's two main divisions. Sales of 5.5 billion euros were a touch below consensus, giving a margin of 23 percent, a percent below quarter one. "The impact of the currency is a very significant one," Nokia Chief Executive Jorma Ollila told television channel CNBC. "If we look at (average phone selling prices) in the second quarter, they would have been flat on the previous quarter's level if we had calculated on a fixed currency basis year on year," he said. Nokia said while sales at NMP would be flat to lower in July-September, unit volumes would grow by well over 10 percent, with profitability to remain strong. Its Networks unit, the smaller of the two main divisions, posted a loss of 334 million euros, weighed down by a restructuring charge of 399 million as it axed hundreds of staff to offset effects of a spending freeze by telecom operators. Nokia said it saw no turnaround in sight, with third-quarter sales at the unit likely to fall by 15-20 percent and a slight loss expected. (Additional reporting by Nina Garlo, Alistair Holloway and Alison Tudor in London)

To: Lizzie Tudor who wrote (6479)	7/17/2003 8:36:37 AM
From: BWAC	Read Replies (2) \| Respond to of 25522

Greenspan says not to worry 'we don't need manufacturing jobs in our economy'. Of course that makes him a senile blabbering fool in my eye.

To: Lizzie Tudor who wrote (6479)	7/17/2003 8:58:32 AM
From: Sarmad Y. Hermiz	Respond to of 25522

>> Well lets see what tomorrow brings in the jobs report. I think the sell-off in the futures for today is unjustified by both earnings data and jobs data. So I expect prices to reverse to the up direction today. story.news.yahoo.com Jobless Claims Fell Last Week on Seasonal Factors edit. The housing / construction data is also very positive today. So the drop in the futures is likely just another irrational fling by the shorts. ------ Housing Starts Jump 3.7 Percent in June Reuters - 7 minutes ago U.S. homebuilders kept busy in June, breaking ground on new homes at the fastest pace since January, the Commerce Department said on Thursday, as low mortgage rates boosted the housing market. ------------ Sarmad