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

To: Donald Wennerstrom who wrote (11623)	10/14/2004 5:36:53 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 25522

Nokia reports increased sales, reduced profits in Q3 By Robert Keenan CommsDesign.com 10/14/2004, 9:49 AM ET WAYNE, N.J. — Nokia reported a slight increase in net sales for the third quarter of 2004. But, the mobile phone giant also reported a 20-percent drop in profit and a 13-percent decrease in mobile phone net sales over numbers it reported in the third quarter of 2003. "With more competitively positioned mobile devices in the replacement market and an attractive offering for rapidly growing markets, Nokia's mobile device volume reached 51.4 million units in the third quarter," said Jorma Ollila, chair and CEO of Nokia. "While Nokia was able to deliver products in higher-than-expected volumes during the quarter, industry-wide component tightness affected our overall volumes," he added. In reporting its third quarter earnings, Nokia said that it increased its market share in the mobile phone section by 33 percent. Despite this increase, Nokia reported net sales of $4.4 billion euros ($5.4 billion US), which was down from the $5.1 billion euro ($6.3 billion US) total the company reported in the third quarter of 2003. According to Nokia, mobile phone sales in the third quarter were more weighted towards low-penetration markets where lower-cost, entry-level phones dominate. The company said mid-range volumes grew, but this was not enough to counter balance the impact of the low penetration markets. Additionally, Nokia said sales continued to be impacted by pricing actions taken in the second quarter 2004. But, despite seeing a decrease in the mobile sector, Nokia did see gains in its three other areas of its business. Specifically, the company reported a 94-percent increase in net sales for its multimedia unit, a 21-percent increase in net sales for its networking equipment unit, and a 52-percent increase in sales for its enterprise equipment sector. Combined with increased mobile phone sales in Europe and Asia, the growth in these units allowed Nokia to deliver a 1-percent increase in sales for the quarter that totaled $6.9 billion euros ($8.5 billion US). Going forward, Nokia expects to report fourth-quarter net sales in the range of $8.4 billion to $8.6 billion euro ($10.4 to $10.6 billion US) range. This compares to a $8.8 billion euro ($10.8 million US) net sales total reported in the fourth-quarter of 2003.