Nokia Oyj — Earnings Release 2003

Oct 16, 2003

News Details

Ad-hoc | 16 October 2003 13:16

Nokia Corp english

Strong volume growth and excellent profitability in mobile phones… Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Strong volume growth and excellent profitability in mobile phones- Nokia meets third-quarter sales and EPS targets Highlights: 3Q 2003 (all comparisons are year on year) ·Net sales declined 5% to EUR 6.9 billion (up 4% at constant currency). ·Nokia Mobile Phones sales were flat at EUR 5.6 billion (up 9% at constant currency). ·Nokia Networks sales declined 21% to EUR 1.2 billion. ·Nokia gains market share with 23% volume growth; industry mobile phone volume growth accelerates to 15%. ·Nokia third-quarter mobile phone market share grows to 39%. ·Company doubles share of global CDMA handset market. ·Excellent pro forma and reported operating margins in mobile phones at 22.4% and 22.0%. ·Nokia Networks achieves breakeven. ·Nokia announces new operating structure for 2004. ·Pro forma EPS (diluted) was EUR 0.18. Reported EPS (diluted) was EUR 0.17. ·Strong operating cash flow in the third quarter at EUR 1.2 billion. end of ad-hoc-announcement (c)DGAP 16.10.2003 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: It should be noted that certain statements herein which are not historical facts, including, without limitation, those regarding A) the timing of product deliveries; B) our ability to develop and implement new products and technologies; C) expectations regarding market growth and developments; D) expectations for growth and profitability; and E) statements preceded by “believe,” “expect,” “anticipate,” “foresee” or similar expressions, are forward-looking statements. Because these statements involve risks and uncertainties, actual results may differ materially from the results that we currently expect. Factors that could cause these differences include, but are not limited to: 1) developments in the mobile communications market including the continued development of the mobile phone replacement market and the timing and success of the roll-out of new products and solutions based on 3G and subsequent new technologies; 2) demand for our products and solutions; 3) the development of the mobile software and services market in general; 4) the availability of new products and services by network operators; 5) market acceptance of new products and service introductions; 6) the intensity of competition in the mobile communications market and changes in the competitive landscape; 7) the impact of changes in technology; 8) general economic conditions globally and in our most important markets; 9) pricing pressures; 10) consolidation or other structural changes in the mobile communications market; 11) the success and financial condition of the Company’s partners, suppliers and customers; 12) the management of the Company’s customer financing exposure; 13) the success of our product development; 14) our success in maintaining efficient manufacturing and logistics as well as high product quality; 15) the ability of the Company to source quality components and research and development without interruption and at acceptable prices; 16) our ability to have access to the complex technology involving patents and other intellectual property rights included in our products and solutions; 17) inventory management risks resulting from shifts in market demand; 18) fluctuations in exchange rates, including, in particular, the fluctuations between the euro, which is our reporting currency, and the US dollar and the Japanese yen; 19) the impact of changes in government policies, laws or regulations; as well as 20) the risk factors specified on pages 11 to 18 of the Company’s Form 20-F for the year ended December 31, 2002. NOKIA Helsinki – October 16, 2003 Media and Investor Contacts: Corporate Communications, tel. +358 7180 34495 or +358 7180 34900 Investor Relations Europe, tel. +358 7180 34289 Investor Relations US, tel. +1 972 894 4880 www.nokia.com – The Annual General Meeting is scheduled to be held on March 25, 2004. The complete press release with tables is available at http://www.nokia.com/2003/3Q/index.html ——————————————————————————– WKN: 870737; ISIN: FI0009000681; Index: Listed: Amtlicher Markt in Frankfurt (General Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 161316 Okt 03