Nokia market share breaks 40 per cent threshold
Nokia stock up 14 per cent in early trading
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Nokia's result for last year indicates that the company's share of the world market for mobile telephones has exceeded 40 per cent.
In figures released early Thursday afternoon, the company estimates that in October-December last year, its share of the mobile phone market was an even 40 per cent.
The company again posted an excellent result for both the fourth quarter of 2007 and the whole year. With its full-year turnover of EUR 51 billion, it reports a profit of EUR 8 billion, representing an EPS of EUR 1.83, up from EUR 1.47 in 2006. Earnings per share for the fourth quarter were up by as much as 57% on the previous year.
The successful showing was attributable in large measure to continued strength in emerging markets and brisk sales of high-margin multimedia devices, and the result was well ahead of analysts' forecasts.
The mobile phone unit made a profit of more than 22 per cent in Q4/2007.
The mobile telephone network venture - Nokia-Siemens Networks - broke even in Q4.
Nokia plans to pay its shareholders dividends for last year amounting to EUR 0.53 per share.
Nokia CEO Olli-Pekka Kallasvuo commented: "Nokia's excellent fourth quarter contributed to a year of high growth and increased profitability for the company, while our industry-leading product portfolio drove our device business to an estimated 40% market share in the fourth quarter. At the same time we again increased our quarterly device margins, allowing Nokia to continue to invest for innovation and growth."
"It was a year of important strategic initiatives by Nokia, with Nokia Siemens Networks starting operations, our internet services effort taking shape around Ovi, and the announcement of the pending acquisition of [satellite navigation firm] NAVTEQ. Facing a market that remains intensely competitive, we are continuing to improve our leading device portfolio as well as execution at Nokia Siemens Networks. With this we believe Nokia is well positioned for growth in 2008."
Soon after the publication of the results, Nokia's share price rose by 13 per cent. Already before the release of the information, Nokia's stock had gone up steeply by around nine per cent in Helsinki, propelled by the anticipation that the bad news coming out of rivals Motorola on Wednesday would indicate the Finnish company had enjoyed better fortunes.
Particular attention has been paid to the Nokia figures at this time, owing to the fragile state of world exchanges, in response to fears of an impending US recession.
By mid-afternoon the rise had levelled off, but Nokia was still sufficiently buoyant to have pushed the Helsinki OMXH25 index up by nearly 7%.
We shall return to the Nokia results in greater detail tomorrow, Friday.
More on this subject:
 Nokia CEO Kallasvuo: "No lifetime jobs in open competitive market"
Links:
OMX Helsinki Exchange
Nokia Press Release: Nokia Q4 2007 net sales of EUR 15.7 billion, EPS of EUR 0.47 (EUR 0.47 excluding special items) January 24. 2008
Helsingin Sanomat
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