Breaking News: Nokia result for 2004 exceeds forecasts

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The Finnish mobile phone giant Nokia has reported net sales and profits for the fourth-quarter of 2004 that handsomely exceed the company’s own forecasts and those of market analysts. The quarterly net sales figure rose by 3% on 4Q/2003 to reach EUR 9,063 million.
      Earnings per share rose to EUR 0.23, where the company itself had predicted in October a figure closer to EUR 0.16-0.18.
      Net sales for the entire year were off by around 1% on 2003 at EUR 29.3 billion. The annual EPS (diluted) figure was EUR 0.70, down slightly from the EUR 0.75 recorded in the previous financial year.
      In the course of the last three months of 2004 Nokia sold around 66 million handsets, giving an estimated market share of 34%. Nokia has seen its towering market share take a hit in recent times, but the last quarter of 2004 indicates that the holding action has begun to bite, albeit with reduced margins. The global market share went up by around 1%-point from the third quarter, and topped the all-year figure of 32%, which represents some 207.7 million units. Though this was a record, other manufacturers have also reaped the benefits of expanding world sales.
      In the current period to the end of March, the company anticipates sales will grow to between EUR 7.0 and 7.3 billion, up from EUR 6.6 billion a year ago. The earnings per share will on the other hand decline to EUR 0.12-0.15 from 1Q/2004's EUR 0.17. Analysts had forescast a figure in the region of EUR 0.14-0.15. On the Helsinki Exchanges the Nokia figures were broadly welcomed in early trading after the announcement, and the company’s stock was up around 8% by 14.30 local time.
     
We shall return to this story in greater depth tomorrow, Friday.


Links:
  Nokia press release
  Helsinki Exchanges

Helsingin Sanomat