Nokia interim report in

Nokia’s interim report results are in; fourth quarter net sales are down 5.3% year on year, with full year net sales down 19.2% year on year.

Nokia net sales hit Euro 12.0 billion, down 5% year on year and up 22% sequentially (down 4% and up 20% at constant currency). Devices & Services net sales are Euro 8.2 billion, up 0.5% year on year and up 18% sequentially (up 2% and 16% at constant currency). Services net sales of Euro 169 million, up 15% sequentially; with billings of Euro 226 million, up 31% sequentially.

The estimated industry mobile device volumes are 329 million units, up 8% year on year and up 14% sequentially.

Nokia mobile device volumes were 126.9 million units, up 12% year on year and up 17% sequentially. Nokia estimated its mobile device market share at 39% in Q4 2009, up from an estimated 37% in Q4 2008 and 38% in Q3 2009. The full year 2009 estimated market share was 38%, down from 39% in 2008.

The company grew its converged device market share to an estimated 40%, from an estimated 35% in Q3 2009. Nokia improved the average selling price of its mobile devices to Euro 63, from Euro 62 in Q3 2009. Devices & Services increased its gross margin to 34.3%, from 30.9% in Q3 2009.

NAVTEQ non-IFRS net sales hit Euro 225 million, up 9% year on year and up 36% sequentially, and non-IFRS operating margin of 24.0%, down from 25.9% in Q3 2009.

Nokia Siemens Networks net sales were Euro 3.6 billion, down 16% year on year and up 31% sequentially (down 17% and up 29% at constant currency).

Nokia operating cash flow was Euro 1.5 billion, more than double the operating cash flow for Q3 2009. Total cash and other liquid assets were Euro 8.9 billion at the end of Q4 2009. Nokia taxes were unfavourably impacted by Nokia Siemens Networks taxes as no tax benefits are recognised for certain Nokia Siemens Networks deferred tax items. If Nokia’s estimated long term tax rate of 26% had been applied, non-IFRS Nokia EPS would have been approximately 1 Euro cent higher.

Olli-Pekka Kallasvuo, Nokia CEO, stated: “We grew our market share in smartphones in the fourth quarter, driven by the successful launch of new touch and QWERTY models. Our performance in smartphones, combined with continuing success in the emerging markets, helped us increase sales in our Devices & Services unit, both quarter on quarter and year on year. Our solid results also owe a good deal to world class supply chain management and impressive sales execution.

“I was also pleased with Nokia Siemens Networks’ performance in Q4, especially considering the ongoing challenging conditions in the infrastructure market. That performance enabled it to turn in a full year profit on an operative basis. Our focus remains firmly on execution, especially around user experience. Here I want to highlight our move to shake up the navigation market with free walk and drive navigation on our smartphones, a good example of how we are leveraging our assets to bring real benefits to consumers.”

Nokia expects Devices & Services net sales to be between Euro 6.5 billion and Euro 7.0 billion in the first quarter 2010. Nokia expects its non-IFRS operating margin in Devices & Services in the first quarter 2010 to be negatively impacted by seasonality and to be at the lower end of the range of its full year 2010 target, which continues to be 12% to 14%.

Nokia and Nokia Siemens Networks expect Nokia Siemens Networks’ net sales to be between Euro 2.6 billion and Euro 2.9 billion in the first quarter 2010. Nokia and Nokia Siemens Networks expect the non-IFRS operating margin in Nokia Siemens Networks in the first quarter 2010 to be negatively impacted by seasonality and to be below the full year 2010 target, which continues to be breakeven to 2%.

Nokia continues to expect industry mobile device volumes to be up approximately 10% in 2010, compared to 2009. Nokia continues to target its mobile device volume market share to be flat in 2010, compared to 2009.

The following two tabs change content below.


Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam dignissim magna vitae dui posuere eu feugiat augue eleifend. Fusce sed tincidunt quam. Donec varius aliquam metus ut semper. Donec augue purus, feugiat interdum malesuada vel, aliquet quis massa. Nulla facilisi. Nam vel ante quam, et tincidunt dui. Maecenas venenatis libero eu nulla tincidunt et accumsan velit sodales. Nam congue mauris et felis porttitor blandit. Nam eget tempor massa. Nullam suscipit gravida eros, ac suscipit magna feugiat sit amet.

Latest posts by admin (see all)