|
Net sales increased 1% to EUR 6 939 million (EUR 6 874 million in Q3 2003), up
8% at constant currency
(all comparisons in parentheses are to third quarter 2003 results regrouped according
to 2004 organization):
- Operating profit decreased 20% to EUR 928 million (EUR 1 154 million), with
operating margin of 13.4% (16.8%)
- EPS (diluted) was EUR 0.14 (EUR 0.17) on net profits of EUR 660 million
- Mobile Phones net sales of EUR 4 429 million (EUR 5 118 million) were 13% lower
than in 2003, with EUR 822 million operating profit (EUR 1 473 million) and operating
margin of 18.6% (28.8%)
- Multimedia net sales increased 94% to EUR 914 million (EUR 471 million)
- Networks net sales grew 21% to EUR 1 470 million (EUR 1 217 million), with
EUR 181 million operating profit (EUR 4 million) and an operating margin of 12.3%
(0.3%)
- Enterprise Solutions net sales increased 52% to EUR 172 million (EUR 113 million)
- Operating cash flow for the quarter was EUR 1.2 billion (EUR 1.2 billion) and
overall cash position was EUR 11.8 billion (EUR 10.8 billion) at the end of the
quarter
JORMA OLLILA, CHAIRMAN AND CEO:
The strong momentum in the global mobile device industry continued in the third
quarter, resulting in a total global mobile device volume of 158 million units,
according to our preliminary estimate. The replacement market in Europe and North
America, as well as markets with relatively low mobile penetration rates such
as Latin America, continued to be the major contributors to this volume growth.
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. While Nokia was able to deliver
products in higher-than-expected volumes during the quarter, industry-wide component
tightness affected our overall volumes.
Nokia's mobile device market share increased quarter-on-quarter to 33%, according
to our preliminary estimate. We made substantial market share gains in major
Western European markets and maintained our leadership position in China. However,
in the US we lost market share during the quarter, and despite strong sales growth,
our market share in Latin America was down slightly from the second quarter 2004.
Nokia net sales increased slightly from third quarter 2003 levels. This was a
result of the mobile device market share gains in Europe and continuing strong
mobile device sales in China, Latin America and the rest of Asia offsetting the
negative sales development in North America. Sales in the infrastructure business
grew significantly in Europe, Latin America and Asia as investments in capacity
and coverage increased.
We achieved EUR 0.14 EPS with a combination of healthy demand for Nokia products,
which resulted in higher-than-expected sales, and steadfast cost control. I'm
particularly pleased with the growing acceptance of many of our mid-range and
high-end products, such as the Nokia 6230 and Nokia 6610i camera phones as well
as the Nokia 7610 and Nokia 6600 imaging smartphones, which materially contributed
to sales and profits in the third quarter.
To further the focused renewal of our product portfolio, we introduced and started
shipping several new mobile devices during the third quarter. The newly launched
products strengthen our high-end and mid-range offering and include a trio of
fashion-category phones, the Nokia 7260, Nokia 7270 and Nokia 7280; our third
mega-pixel imaging smartphone, the Nokia 6670; and the Nokia 9300 enterprise smartphone.
Our mobile infrastructure business sales grew markedly in Europe, Latin America
and Asia during the quarter as operators continued to expand capacity and coverage.
Sustained strong sales in 2G and five new GSM, EDGE and 3G customers in growth markets contributed to Networks solid
third-quarter profitability. Highlighting our progress in 3G, Nokia has to date supplied 3G technology to
24 of the 50 commercially launched WCDMA 3G networks in the world.
We aim to continue offering high value-adding products to our customers, including
operators, consumers and enterprises, by persistently renewing our competences
and product portfolio. To drive these results, we have allocated additional resources
to customization and enhanced customer focus, as several recent announcements
indicate. I'm pleased that our efforts in product renewal resulted in market
share gains in the third quarter in major Western European markets due to the
positive reception of camera phones and Symbian-based, open platform smartphones.
Our increased smartphone offering and investments in software have contributed
to our clear leadership in smartphones.
We expect continued strong growth in global mobile device market volumes in the
fourth quarter, even as compared to the remarkable final quarter in 2003, and
now estimate that the 2004 total market volume will be approximately 630 million
units. In the fourth quarter, we will begin shipping several new products focused
on the mid-range and high-end to further strengthen the competitiveness of our
product portfolio in order to continue building our market share.
|
NOKIA Q3 AND JANUARY - SEPTEMBER 2004 RESULTS - REPORTED
|
|
EUR million |
Q3/
2004 |
Q3/
2003* |
Change
(%) |
Jan -
Sept
2004 |
Jan -
Sept
2003* |
Change
(%) |
|
Net sales |
6 939 |
6 874 |
1 |
20 204 |
20 666 |
-2 |
|
Mobile Phones |
4 429 |
5 118 |
-13 |
12 847 |
14 913 |
-14 |
|
Multimedia |
914 |
471 |
94 |
2 429 |
1 551 |
57 |
|
Networks |
1 470 |
1 217 |
21 |
4 461 |
3 914 |
14 |
|
Enterprise Solutions |
172 |
113 |
52 |
550 |
403 |
36 |
|
Operating profit |
928 |
1 154 |
-20 |
2 973 |
3 342 |
-11 |
|
Mobile Phones |
822 |
1 473 |
-44 |
2 708 |
4 230 |
-36 |
|
Multimedia |
87 |
-177 |
|
15 |
-293 |
|
|
Networks |
181 |
4 |
|
618 |
-260 |
|
|
Enterprise Solutions |
-66 |
-34 |
-94 |
-156 |
-82 |
-90 |
|
Operating margin (%) |
13.4 |
16.8 |
|
14.7 |
16.2 |
|
|
Mobile Phones (%) |
18.6 |
28.8 |
|
21.1 |
28.4 |
|
|
Multimedia (%) |
9.5 |
-37.6 |
|
0.6 |
-18.9 |
|
|
Networks (%) |
12.3 |
0.3 |
|
13.9 |
-6.6 |
|
|
Enterprise Solutions
(%) |
-38.4 |
-30.1 |
|
-28.4 |
-20.3 |
|
|
Financial income
and expenses |
78 |
70 |
11 |
289 |
281 |
3 |
|
Profit before tax
and minority
interests |
1 000 |
1 222 |
-18 |
3 246 |
3 614 |
-10 |
|
Net profit |
660 |
823 |
-20 |
2 188 |
2 424 |
-10 |
|
EPS, EUR |
|
|
|
|
|
|
|
Basic |
0.14 |
0.17 |
-18 |
0.47 |
0.51 |
-8 |
|
Diluted |
0.14 |
0.17 |
-18 |
0.47 |
0.51 |
-8 |
1 EUR = 1.223 USD
* Business Group Q3/2003 and January - September 2003 figures are based on the
(unaudited) regrouped 2003 financial results as published on March 25, 2004.
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