Nokia Oyj — Earnings Release 2003

Apr 17, 2003

News Details

Ad-hoc | 17 April 2003 12:04

Nokia Corp english

Nokia achieves excellent profitability in the first quarter Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Nokia achieves excellent profitability in the first quarter and mobile phone volumes grow faster than market First quarter 2003 compared with the first quarter 2002: – Net sales were EUR 6 773 million (EUR 7 014 million in 1Q 2002), down by 3%. – Pro forma operating profit was EUR 1 187 million (EUR 1 286 million), down by 8%. This included a gain of EUR 56 million in 1Q 2003 from the sale of the remaining shares of Nokian Tyres. Pro forma operating margin was 17.5% (18.3%). – Pro forma adjustments for 1Q 2003 were EUR 183 million, including: – Goodwill amortization of EUR 43 million – Positive adjustment of EUR 226 million to 3Q 2002 customer finance impairment (MobilCom) – Pro forma net profit was EUR 860 million (EUR 915 million), down by 6%. – Pro forma earnings per share (diluted) were EUR 0.18 (EUR 0.19). The sale of the shares of Nokian Tyres contributed approximately EUR 0.01. – Reported operating profit increased by 11% to EUR 1 370 million (EUR 1 234 million). – Reported net profit increased by 13% to EUR 977 million (EUR 863 million) and reported earnings per share (diluted) increased to EUR 0.20 (EUR 0.18). – Operating cash flow in the first quarter continued strongly at EUR 1.4 billion. end of ad-hoc-announcement (c)DGAP 17.04.2003 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 – April 17, 2003 For more information: Lauri Kivinen, Corporate Communications, tel. +358 7180 34495 Ulla James, Investor Relations, tel. +1 972 894 4880 Antti Räikkönen, Investor Relations, tel. +358 7180 34290 www.nokia.com – Nokia will report 2Q results on July 17, 2003 and plans a mid-quarter update on June 10, 2003. – Results announcements for 3Q and 4Q 2003 are planned for October 16, 2003 and January 22, 2004, respectively. The complete press release with tables is available at: http://www.nokia.com/2003/1Q/index.html ——————————————————————————– WKN: 870737; ISIN: FI0009000681; Index: Listed: Amtlicher Markt in Frankfurt (General Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 171204 Apr 03