Nokia Oyj — Earnings Release 2004

Jul 15, 2004

News Details

Ad-hoc | 15 July 2004 12:48

Nokia reports second-quarter net sales of EUR 6 640 million, EPS EUR 0.15

Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Nokia reports second-quarter net sales of EUR 6 640 million, EPS EUR 0.15 Highlights second quarter 2004 (all comparisons in parentheses are to second quarter 2003 results regrouped according to 2004 organization): ·Net sales declined 5% to EUR 6 640 million (EUR 7 019 million in Q2 2003), up 1% at constant currency ·Operating profit was EUR 907 million (EUR 818 million), including a one-time positive item of EUR 90 million representing a premium return related to our insurance program, with operating margin of 13.7% (11.7%) ·Net financial income was EUR 135 million (EUR 131 million), including a one- time positive item of EUR 71 million from the gain on the sale of the France Telecom bond ·EPS (diluted) was EUR 0.15 (EUR 0.13) on total net profits of EUR 712 million, including a favorable EUR 0.03 impact on EPS (diluted) from the two above- mentioned, one-time positive items ·Mobile Phones net sales decreased 13% to EUR 4 167 million (EUR 4 806 million), with EUR 797 million operating profit (EUR 1 308 million) and operating margin of 19.1% (27.2%) ·Multimedia net sales increased 24% to EUR 739 million (EUR 596 million); Enterprise Solutions net sales decreased 2% to EUR 189 million (EUR 193 million) ·Networks net sales increased 6% to EUR 1 576 million (EUR 1 480 million), with EUR 255 million operating profit (EUR 349 million operating loss) and an operating margin of 16.2% (-23.6%). In Q2 2003, Networks business had a restructuring charge of EUR 399 million included in the Networks operating loss of EUR 349 million, which negatively impacted Nokia EPS (diluted) by EUR 0.06 ·Operating cash flow was EUR 1.4 billion (EUR 1.3 billion) and overall cash position was EUR 11.5 billion (EUR 9.9 billion) at the end of the quarter Complete press release with tables is available at http://www.nokia.com/results2004Q2e.pdf It should be noted that certain statements herein which are not historical facts, including, without limitation, those regarding: A) the timing of product and solution launches and deliveries; B) our ability to develop, implement and commercialize new products, solutions and technologies; C) expectations regarding market growth, developments and structural changes; D) expectations and targets for our results of operations; E) the outcome of pending and threatened litigation; and F) 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 industry and the broader mobility industry, including the development of the mobile software and services market, as well as industry consolidation and other structural changes; 2) timing and success of the introduction and roll out of new products and solutions; 3) demand for and market acceptance of our products and solutions; 4) the impact of changes in technology and the success of our product and solution development; 5) the intensity of competition in the mobility industry and changes in the competitive landscape; 6) our ability to control the variety of factors affecting our ability to reach our targets and give accurate forecasts; 7) pricing pressures; 8) the availability of new products and services by network operators and other market participants; 9) general economic conditions globally and in our most important markets; 10) our success in maintaining efficient manufacturing and logistics as well as the high quality of our products and solutions; 11) inventory management risks resulting from shifts in market demand; 12) our ability to source quality components without interruption and at acceptable prices; 13) our success in collaboration arrangements relating to technologies, software or new products and solutions; 14) the success, financial condition, and performance of our collaboration partners, suppliers and customers; 15) any disruption to information technology systems and networks that our operations rely on; 16) our ability to have access to the complex technology involving patents and other intellectual property rights included in our products and solutions at commercially acceptable terms and without infringing any protected intellectual property rights; 17) developments under large, multi-year contracts or in relation to major customers; 18) the management of our customer financing exposure; 19) exchange rate fluctuations, including, in particular, fluctuations between the euro, which is our reporting currency, and the US dollar, the UK pound sterling and the Japanese yen; 20) our ability to recruit, retain and develop appropriately skilled employees; 21) our ability to implement our new organizational structure; and 22) the impact of changes in government policies, laws or regulations; as well as 23) the risk factors specified on pages 12 to 21 of the company’s Form 20-F for the year ended December 31, 2003 under “Item 3.D Risk Factors.” NOKIA, HELSINKI, FINLAND – JULY 15, 2004 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. +1 914 368 0555 http://www.nokia.com Nokia plans to report Q3 2004 results on October 14, 2004. © 2004 Research In Motion Limited. All rights reserved. BlackBerry is a trademark of Research In Motion Limited. end of ad-hoc-announcement (c)DGAP 15.07.2004 ——————————————————————————– WKN: 870737; ISIN: FI0009000681; Index: Listed: Amtlicher Markt in Frankfurt (General Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 151248 Jul 04