Thursday: Nokia reports better-than-expected first quarter figures

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Mobile handset manufacturer Nokia presented its figures for 1Q/2005 on Thursday, and they exceeded market expectations. The news, released just after 1 p.m. local time, sent the company's stock spiralling upwards in Helsinki. By 3.30 p.m. it had put on 5.5% in heavy trading.
      The Finnish giant recorded a 17% growth in net sales to reach EUR 7,396 million for the period. Analysts had predicted sales in the region of EUR 7,150 million.
     
The better figures suggest consumers have welcomed Nokia's revamped portfolio of phones and are buying models at the higher end of the market.
      Profit before tax and minority interests was at EUR 1,192 million, up from EUR 1,092 in 1Q/2004.
      Again, market analysts interviewed by the Startel news agency had anticipated profits before tax of less than EUR 1 billion on average. Earnings per share were also elevated at EUR 0.19. (1Q/2004: EUR 0.16).
      Net profit was up a healthy 18% from 729 million to 863 million euros.
     
For the current quarter to the end of June, the company anticipates net sales in the frame of EUR 7,900 million to EUR 8,200 million, and an estimated EPS of 0.15-0.18 euros (2Q/2004 EUR 0.15).
      Nokia Chairman and CEO Jorma Ollila expressed satisfaction with the performance and revised the projection for annual global handset sales upwards to 740 million this year.
      The Finnish company's results come on the back of improved figures from American rival and market #2 Motorola, which also posted markedly improved profits and an upbeat forecast for the next quarter.
      More details and market reaction tomorrow.


Previously in HS International Edition:
  Nokia recoups losses of early 2004 in fourth quarter (28.1.2005)

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Helsingin Sanomat