RECORD QUARTER ENHANCES NOKIA´S POSITION IN DIGITAL TECHNOLOGIES
August 04, 1997
Million FIM 2Q/97 2Q/96 1H/97 1H/96 1996
Net sales 13 061 8 948 24 392 16 879 39 321
Operating profit 1 908 825 3 370 1 337 4 266
Operating profit,
% 14.6% 9.2% 13.8% 7.9% 10.8%
Profit before
tax and minority
interests 1 879 728 3 331 1 127 3 898
Net profit 1 332 518 2 405 842 3 263
Earnings per
share (FIM) 4.70 1.83 8.49 2.97 10.73
Helsinki, Finland (4 August 1997) - - Nokia today reports a record quarter both in sales and profits. Continued global investment in digital communication technologies has led to an increase in sales by 46% to FIM 13 061 million in the second quarter of 1997 compared to the same period in 1996. Strong growth continued in Nokia Telecommunications (up 35% to FIM 4 354 million), in Nokia Mobile Phones (up 49% to FIM 7 316 million) and in Other Operations (up 71% to FIM 1 675 million).
Operating profit (IAS, International Accounting Standards) for the second quarter was 14.6% of net sales, an increase of FIM 1 083 million to FIM 1 908 million. The increase is mainly attributable to continued significant improvement in the operating profit of Nokia Mobile Phones compared to the weak performance a year ago. Nokia Telecommunications and Other Operations also reported higher profits than in the second quarter in 1996.
Net interest and financial expense for the second quarter in 1997 was FIM 55 million (FIM 116 million in 1996). Profit before tax and minority interests totaled FIM 1 879 million (FIM 728 million in 1996). The Group´s net profit for the quarter totaled FIM 1 332 million (FIM 518 million in 1996).
Commenting on the results, Nokia President and CEO Jorma Ollila stated, "Our growth and profits during the second quarter give solid confirmation of our customer dedication, digital technology choices, successful product development and operations, as well as the excellent work of our personnel."
Ollila continued, "For the first half of the year, especially significant is the growth of Nokia´s digital mobile phone sales by 94%. Also noteworthy is the growth in the order inflow in our infrastructure business which clearly surpassed market growth."
Currency rate June 30, 1997, 1 FIM = 0.194 USD
- - - Headquartered in Finland, Nokia is a leader in digital technologies including mobile phones, cellular and fixed telecommunications networks, wireless data solutions and multimedia terminals. With sales in approximately 130 countries, net sales totaled FIM 39.3 billion ($8.5 billion) in 1996. Nokia employs more than 34,000 people in 45 countries. Nokia's shares are listed in Helsinki, New York, London, Stockholm, Frankfurt and Paris. - - -
For further information, please contact:
Mr Lauri Kivinen
Senior Vice President, Corporate Communications, Nokia
tel. +358 9 1807 495
Mr Philip Ellison
Vice President, Communications, Nokia Americas
tel. +1 972 257 9573
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