10PA Anz Bank 37

RNS Number:5190A
Nokia Corporation
15 March 2001



For the first quarter, Nokia currently expects to report solid
growth and good profitability - despite a more challenging
business environment

During the last few months, in a period of difficult market
conditions, Nokia has been able to strengthen its leadership
position in mobile communications. Nokia Networks has won several
agreements to deliver third generation mobile network technology,
and is targeting the leading position in that market. In addition,
Nokia's strong product portfolio and superior execution in mobile
phones have helped it widen its market leadership to above the
level of 32% achieved in 2000.

Nokia Chairman and CEO Jorma Ollila said: "We feel confident about
our strengths and our performance during the early months of the
year. Despite the more difficult market conditions, we have been
able to show good progress. We expect to see solid growth for the
first quarter as a whole, with better than anticipated margins".

Based on the first two months of 2001, Nokia estimates that it is
likely to reach an EPS of approximately 0.19 EUR for the first
quarter, in line with its earlier statements. Also for the first
quarter, the company expects year-on-year sales growth in Nokia
Networks to be 30-35% and in Nokia Mobile Phones 15-20%. This
would lead to a total sales growth of about 20%, compared to our
earlier estimate of 25-30%. All of these estimates are naturally
subject to market developments in the final weeks of the quarter.

The slower than expected sales growth in the first quarter is
mainly due to the stronger than anticipated impact of demanding
market conditions. Especially in the United States, economic
uncertainty has increased during the last weeks. Due to the slower
growth and more difficult market conditions during the first
months of the year, we now estimate that the full year 2001 mobile
phone market size will be between 450 and 500 million units.

"More challenging times like these test your mettle as a company.
We believe that truly great companies emerge from challenging
times much stronger. Nokia's market position and exceptionally
strong product portfolio have enabled it to thrive in today's
demanding business environment. We will continue to fully
capitalize on our industry-leading market position to exploit the
volume benefits in product development, brand, distribution and
purchasing power", commented Mr. Ollila.

Nokia will continue its strategy of aggressively gaining market
share without compromising profitability. The company sees many
opportunities in the market and will use its strengths to serve
its customers in the best possible way, even in tightening
economic conditions. Our own inventory levels as well as the
levels of Nokia-manufactured phones in the sales channels are
lower than at year end, allowing us a healthy flow of deliveries.

Nokia has reacted to the changing market conditions by
accelerating its ongoing programs to generate further efficiencies
from operations and find additional cost savings. These measures
are conducted in a complementary way across businesses, without
jeopardizing the needed investments into research and product
development as we move towards next generation technologies. Nokia
continues to achieve a strong positive cash-flow from its
operations for the current quarter.

As to the second quarter and full year business outlook in the
context of these developments, we are currently forming our
opinion, which will be communicated along with our full first
quarter results on April 20.

It should be noted that certain statements herein which are not
historical facts, including, without limitation those regarding 1)
the Company's ability to develop new products and technologies; 2)
expectations regarding market growth and developments; 3)
expectations for growth and profitability; and 4) statements
preceded by "believes", "expects", "anticipates", "foresees", or
similar expressions, are forward-looking statements. Because such
statements involve risks and uncertainties, actual results may
differ materially from the results currently expected by the
Company. Factors that could cause such differences include, but
are not limited to 1) general economic conditions, such as the
rate of economic growth in the Company's principal geographic
markets or fluctuations in exchange rates; 2) industry conditions,
such as the strength of product demand, the intensity of
competition, pricing pressures, the acceptability of new product
introductions such as Internet-ready phones, the introduction of
new products by competitors, the impact of changes in technology,
including the Company's success in the emerging 3G market, the
ability of the Company to source components from third parties
without interruption and at reasonable prices, demand for vendor
financing and the Company's ability and willingness to provide
such financing, and the success and financial condition of the
Company's strategic partners and customers; 3) operating factors,
such as continued success of manufacturing activities and the
achievement of efficiencies therein, continued success of product
development or inventory risks due to shifts in market demand; as
well as 4) the risk factors specified on pages 21 to 23 of the
Company's Form 20-F for the year ended December 31, 1999.

Further information:

Corporate Communications, Finland
Tel. +358 (0) 7180 34424
Investor Relations, Finland
Tel. +358 (0) 7180 34289
Investor Relations, USA
Tel. +1 972 894 4555

www.nokia.com

Anz Bank 37 (LSE:10PA)
Gráfica de Acción Histórica
De Abr 2024 a May 2024

Anz Bank 37 (LSE:10PA)
Gráfica de Acción Histórica
De May 2023 a May 2024