Published November 14, 1996 | By Nokia - Press Release
Nokia Reports Third Quarter Results
The profitability gains in the third quarter represent a significant improvement over Nokia's second quarter 1996 performance. Both Nokia Telecommunications and Nokia Mobile Phones business groups recorded higher operating profits than in the same period in 1995. Nokia Telecommunications continued its strong performance, with net sales rising 26% to FIM 3,132 Million (FIM 2,494 Million in 1995). Compared with the third quarter 1995, Nokia Mobile Phones recorded a 58% increase in sales for the quarter, rising to FIM 5,641 Million (3,565 Million in the same period of 1995). Sales of Nokia General Communications Products, due largely to structural changes in the business group, declined by 32% to FIM 1,152 Million (FIM 1,701 Million) in the JulySeptember period.
The improvement in Nokia Mobile Phones sales can be attributed in part to the continued strong handset demand during the JulySeptember period, especially in European and Asian markets, with an increasing shift toward digital technology. Recently introduced new digital terminals, complementing Nokia's comprehensive product range, have been well-received, fulfilling the needs of various market segments.
As a leading provider of telecommunications infrastructure, Nokia Telecommunications' order flow remained strong, bringing the total of new cellular customers to 15 for the year to date. Achieving new milestones as the leading supplier of DCS 1800 solutions, the business group also strengthened its position as a leading supplier of switching and transmission systems, including SDH technology, to UK cable television operators.
"Nokia's results for the third quarter 1996 showed continued growth and profitability. We are especially pleased with the high growth in sales and progress in achieving operating efficiencies within Nokia Mobile Phones," states Jorma Ollila, Nokia Group President and CEO.
"We are also pleased with the results generated by Nokia Telecommunications in a very competitive marketplace. Although sales of the business group grew at a somewhat slower rate than expected, profits exceeded our expectations," according to Ollila.
"With the divestment of non-core operations, Nokia has sharpened its focus in telecom-related businesses. This will allow us to more effectively focus our R&D and other resources on our core businesses, i.e. telecom operator driven infrastructure business, end-user driven terminal business, integrated solutions business and other telecom related businesses," concludes Ollila. "Nokia is well positioned to capitalize on its experience and total competence in cellular and access networks to meet growing operator needs for increasingly complex integrated solutions."
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Nokia Group, headquartered in Helsinki, Finland, is an international telecommunications company with 1995 net sales of USD 8.4 Billion. Nokia is Europe's largest, and the world's second largest manufacturer of mobile phones, offering the most complete product range in GSM digital terminals, addressing every major user segment. Nokia is a world leading supplier of GSM/DCS cellular networks and a significant supplier of advanced access networks, multimedia equipment and other telecom related products. Nokia employs 30,000 people worldwide and its shares are traded in Helsinki, New York, London, Stockholm, Frankfurt and Paris.
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Currency rate at September 30, 1996: FIM 1 = USD 0.221
The improvement in Nokia Mobile Phones sales can be attributed in part to the continued strong handset demand during the JulySeptember period, especially in European and Asian markets, with an increasing shift toward digital technology. Recently introduced new digital terminals, complementing Nokia's comprehensive product range, have been well-received, fulfilling the needs of various market segments.
As a leading provider of telecommunications infrastructure, Nokia Telecommunications' order flow remained strong, bringing the total of new cellular customers to 15 for the year to date. Achieving new milestones as the leading supplier of DCS 1800 solutions, the business group also strengthened its position as a leading supplier of switching and transmission systems, including SDH technology, to UK cable television operators.
"Nokia's results for the third quarter 1996 showed continued growth and profitability. We are especially pleased with the high growth in sales and progress in achieving operating efficiencies within Nokia Mobile Phones," states Jorma Ollila, Nokia Group President and CEO.
"We are also pleased with the results generated by Nokia Telecommunications in a very competitive marketplace. Although sales of the business group grew at a somewhat slower rate than expected, profits exceeded our expectations," according to Ollila.
"With the divestment of non-core operations, Nokia has sharpened its focus in telecom-related businesses. This will allow us to more effectively focus our R&D and other resources on our core businesses, i.e. telecom operator driven infrastructure business, end-user driven terminal business, integrated solutions business and other telecom related businesses," concludes Ollila. "Nokia is well positioned to capitalize on its experience and total competence in cellular and access networks to meet growing operator needs for increasingly complex integrated solutions."
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Nokia Group, headquartered in Helsinki, Finland, is an international telecommunications company with 1995 net sales of USD 8.4 Billion. Nokia is Europe's largest, and the world's second largest manufacturer of mobile phones, offering the most complete product range in GSM digital terminals, addressing every major user segment. Nokia is a world leading supplier of GSM/DCS cellular networks and a significant supplier of advanced access networks, multimedia equipment and other telecom related products. Nokia employs 30,000 people worldwide and its shares are traded in Helsinki, New York, London, Stockholm, Frankfurt and Paris.
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Currency rate at September 30, 1996: FIM 1 = USD 0.221
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