EUR million 2Q/2000 2Q/1999 Change% 1H/2000 1H/1999 1999
Net sales 6 980 4 493 + 55 13 517 8 363 19 772
Nokia Networks 1 925 1 390 + 38 3 427 2 498 5 673
Nokia Mobile Phones 4 883 2 922 + 67 9 722 5 499 13 182
Nokia Ventures Organization 193 67 + 188 404 131 415
Operating profit 1 412 881 + 60 2 728 1 649 3 908
Nokia Networks 348 274 + 27 621 500 1 082
Nokia Mobile Phones 1 221 671 + 82 2 382 1 287 3 099
Nokia Ventures Organization
- 108 - 31 - 178 - 53 - 175
Common Group Expenses - 49 - 33 - 97 - 85 - 98
Profit before tax and
minority interests 1 424 877 + 62 2 757 1 635 3 845
Net profit 951 581 + 64 1 842 1 086 2 577
EPS, EUR
Basic 0.20 0.13 + 54 0.39 0.24 0.56
Diluted 0.20 0.12 + 67 0.39 0.22 0.54
Nokia reports strong quarterly results with continued fast growth for April – June 2000. Net sales totaled EUR 6 980 million, an increase of 55% compared to the second quarter in 1999. Operating profit increased by 60% to EUR 1 412 million, resulting in an operating margin of 20.2%.
Jorma Ollila, Nokia Chairman and CEO, said: "Strong growth in the global mobile communications market continued during the second quarter. According to preliminary estimates, the number of mobile phone users worldwide rose to over 570 million by the end of June. This is well in line with our projection of over one billion mobile phone subscribers globally before the end of 2002. We estimate that the mobile phone market growth for the full year 2000 will cause the total annual market volume to exceed 400 million units."
"Nokia Networks' sales growth, together with our continuous operational renewal, give us confidence that we are well positioned to strengthen our established market position in new technologies. Our mobile phones sales grew 67%, while we sustained an exceptional level of profitability. This once again proves the combined strength of Nokia's strong product portfolio, leading brand and superior demand supply chain, all of which we are continuously further developing."
"Overall growth prospects for Nokia in the later part of the year, as well as for the long term, remain unchanged, stimulated by the strong mobile communications market. We expect competition to remain fierce, making it necessary to continuously improve efficiency and master rapid growth without compromising customer satisfaction. We feel we have an excellent opportunity to strengthen our market position and to realize the benefits of meeting emerging customer needs in the Mobile Information Society", said Ollila.
"In the coming months Nokia Mobile Phones plans to commence shipments of several advanced models. We anticipate Nokia´s earnings per share in the third quarter to be at least equal to the level achieved in the third quarter of 1999. However, due to the timing of the new product introductions as well as seasonality, they are projected to be lower than in the second quarter of this year. In the fourth quarter, we expect the earnings per share to exceed the level achieved in the second quarter of 2000."
Currency rate June 30, 2000, 1 EUR = 0.947 USD
Nokia is paving the way to the Mobile Information Society with its innovative products and solutions. The company is the leading mobile phone supplier and a leading supplier of mobile, fixed and IP networks, related services as well as multimedia terminals. In 1999, Nokia's net sales totaled EUR 19.8 billion (USD 19.9 billion). Headquartered in Finland, Nokia is listed on the New York (NOK), Helsinki, Stockholm, London, Frankfurt and Paris stock exchanges and employs more than 60 000 people.
For more information:
Lauri Kivinen, Corporate Communications, tel. +358 9 1807 495, lauri.kivinen@nokia.com
Ulla James, Investor Relations, tel. +1 972 894 4880, ulla.james@nokia.com
Antti Räikkönen, Investor Relations, tel. +358 9 1807 290, antti.raikkonen@nokia.com
www.nokia.com
The results release as a pdf-format will also be available in different languages (English, Finnish, Swedish, German, French, Spanish and Italian) on http://www.nokia.com/investor/index.html