Business Services Industry
NOKIA In 1997: Record year of high profits and strengthened global market position
Business Wire, Feb 12, 1998
CONSOLIDATED PROFIT AND LOSS ACCOUNT, IAS
(audited)
10-12/97 10-12/96 1-12/97 1-12/96
MFIM MFIM MFIM MFIM
Net sales 15 857 12 669 52 612 39 321
Cost of goods sold -9 722 -8 677 -33 999 -28 029
Research and development expenses -1 529 -1 061 -4 560 -3 514
Selling, general and administrative
expenses -1 776 -1 194 -5 599 -3 512
Operating profit 2 830 1 737 8 454 4 266
Share of results of
associated companies 21 -14 54 37
Financial income and expenses -16 -53 -137 -405
Profit before tax
and minority interests 2 835 1 670 8 371 3 898
Tax -724 -261 -2 274 -856
Minority interests -93 17 -99 2
Profit from continuing operations 2 018 1 426 5 998 3 044
Discontinued operations - 219 261 219
Net profit 2 018 1 645 6 259 3 263
Earnings per share (FIM):
Continuing operations 7.12 5.03 21.17 10.73
Depreciation 1 008 734 2 762 2 236
Average number of shares
(1 000 shares) 283 319 283 269 283 282 283 561
Currency rate December 31, 1997, 1 FIM = 0.187 USD
CONSOLIDATED BALANCE SHEET, IAS
(audited)
Financial year ended 31 December, MFIM 1997 1996
ASSETS
Fixed assets and other non-current assets
Intangible assets 2 061 1 455
Property, plant and equipment 6 240 5 662
Investments 789 901
Long-term loan receivables 160 138
Other non-current assets 195 253
9 445 8 409
Current assets
Inventories 7 314 6 423
Accounts receivable 12 732 10 898
Short-term investments 9 363 5 886
Bank and cash 2 884 1 659
32 293 24 866
Total assets 41 738 33 275
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity
Share capital 1 499 1 498
Other restricted equity 5 542 5 298
Treasury shares -654 -657
Untaxed reserves 1 279 1 516
Retained earnings 13 858 8 270
21 524 15 925
Minority interests 195 29
Long-term liabilities
Long-term debt 1 348 2 117
Other long-term liabilities 295 297
1 643 2 414
Current liabilities
Short-term borrowings 3 008 3 404
Current portion of long-term debt 285 555
Accounts payable and accrued liabilities 14 541 10 610
Advance payments 542 338
18 376 14 907
Total shareholders' equity and liabilities 41 738 33 275
Interest bearing liabilities 4 640 6 076
Currency rate December 31, 1997, 1 FIM = 0.187 USD
NET SALES BY BUSINESS GROUP, MFIM
(audited)
10-12/97 10-12/96 1-12/97 1-12/96
Nokia Telecommunications 6 368 4 199 18 826 13 333
Nokia Mobile Phones 7 505 7 139 27 643 21 579
Other Operations 1) 2 302 1 569 7 239 5 197
Inter-business group eliminations -318 -238 -1 096 -788
Nokia Group 15 857 12 669 52 612 39 321
1) of which Discontinued and
Divested Operations - 77 - 589
OPERATING PROFIT BY BUSINESS GROUP, MFIM
(audited)
1997 % of 1996 % of
MFIMnet sales MFIMnet sales
Nokia Telecommunications 4 053 21.5 2 982 22.4
Nokia Mobile Phones 3 837 13.9 1 431 6.6
Other Operations 564 7.8 -147 -2.8
Nokia Group 8 454 16.1 4 266 10.8
Currency rate December 31, 1997, 1 FIM = 0.187 USD
CONTINGENT LIABILITIES
(audited)
NOKIA GROUP
31.12.1997 31.12.1996
MFIM MFIM
Pension fund liability
Liability of pension funds 2 2
Liability for bills of exchange 3 1
Mortgages
As security for loans
For own debts 45 254
As security for other commitments
For own commitments 13 37
Assets pledged
As security for own debts 107 62
Guarantees
Guarantees for loans
As security for loans of
associated companies 6 6
As security for loans of other companies 341 82
Other guarantees and commitments
As security for own commitments 1 198 991
Leasing obligations 1 339 1 181
NOTIONAL AMOUNTS OF DERIVATIVE FINANCIAL INSTRUMENTS 1)
31.12.1997 31.12.1996
MFIM MFIM
Foreign exchange forward contracts 2) 3) 57 228 30 714
Currency options bought 7 945 5 796
Currency options sold 8 299 5 827
Interest rate forward and
futures contracts 2) 5 695 25 519
Interest rate swaps 575 1 645
Interest rate options bought 187 1 139
Interest rate options sold - 342
1) The notional amounts of derivatives summarized here do not
represent amounts exchanged
by the parties and, thus are not a measure of the exposure of Nokia
caused by its use of derivatives.
2) Notional amounts outstanding include positions, which have been
closed off.
3) As at December 31, 1997 notional amount includes contracts
amounting to 5.2 billion FIM used to hedge the shareholders' equity
of foreign subsidiaries and as at December 31, 1996 respectively
2.1 billion FIM.
Currency rate December 31, 1997, 1 FIM = 0.187 USD
PERSONNEL
31.12.1997 31.12.1996
Nokia Telecommunications 17 168 13 475
Nokia Mobile Phones 13 371 11 329
Other operations 6 108 6 919
Nokia Group 36 647 31 723
Finland 19 779 17 866
Other Europe 8 249 8 012
Americas 4 676 3 403
Asia-Pacific 3 943 2 435
Other Countries - 7
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