Nokia reports record quarterly results and becomes the largest manufacturer of mobile phones
October 23, 1998
Million FIM 3Q 3Q Change 1-9/ 1-9/
1998 1997 % 1998 1997
Net sales 20 064 12 363 +62 53 354 36 755
Nokia Tele-
communications 6 185 4 370 +42 17 765 12 458
Nokia Mobile
Phones 12 956 6 671 +94 31 910 20 138
Other
Operations 1 152 1 630 -29 4 448 4 937
Operating profit 4 081 2 254 +81 9 742 5 624
Profit before
tax and minority
interests 4 084 2 205 +85 9 632 5 536
Profit from
continuing
operations 2 760 1 575 +75 6 518 3 980
Net profit 2 760 1 836 +50 6 934 4 241
Earnings per
share from
continuing
operations,
FIM, Basic 4.84 2.78 +74 11.46 7.03
Nokia's third quarter 1998 results show again strong growth in sales and high profits. Net sales totaled FIM 20 064 million (12 363 million in 1997), an increase of 62%. Operating profit increased by 81% compared to the third quarter 1997 and was FIM 4 081 million (2 254 million in 1997), representing an operating margin of 20.3% (18.2% in 1997).
Commenting on the results, Nokia President and CEO Jorma Ollila stated: "Our third quarter results show a continuation of the fundamental strengths in telecommunications markets and we again substantially surpassed all our previously reported quarterly results. Lower than anticipated price erosion in mobile phones and rapid digitalization in the Americas resulted in higher than expected sales and profitability. Based on our strong performance and preliminary market data for the first nine months in 1998, we now feel confident in declaring that we have significantly increased our market share in mobile phones to become the largest manufacturer of mobile phones world-wide."
"Continued fast growth in several major markets, especially in China, Europe and the U.S., contributed to our overall high growth figures. We expect the strong growth, good profitability and positive cash flow to continue in the fourth quarter 1998. As always, our actual results will also depend on various external factors, including general economic and industry conditions. While forecasting the outlook for 1999 remains a challenge due to the uncertainties in general economic conditions, we feel confident about our businesses in telecommunications markets and maintain our previously stated sales growth targets."
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Currency rate September 30, 1998, 1 FIM = 0.194 USD
Nokia is the world's leading mobile phone supplier and a leading supplier of mobile and fixed telecom networks including related customer services. Nokia also supplies solutions and products for fixed and wireless datacom, as well as multimedia terminals and computer monitors. In 1997, net sales totaled FIM 52.6 billion (USD 9.8 billion). Headquartered in Finland, Nokia is listed on five European Stock Exchanges and on the New York Stock Exchange (NOK.A), has sales in 130 countries and employs more than 42,000 people world-wide.
Contact information:
Nokia Corporate Communications, tel. + 358 9 1807 363
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