Nokia On Track to Reach Fourth Quarter Sales Guidance - Earnings Estimate to be Met or Even Exceeded

Business Wire, Dec 11, 2001

Business Editors

HELSINKI, Finland--(BUSINESS WIRE)--Dec. 11, 2001

Nokia today provided a scheduled mid-quarter update to the company's business outlook for the fourth quarter, 2001.

Based on developments during October and November, the company expects total sequential net sales growth for the Nokia group to reach approximately 20%. Nokia Networks sales are expected to be up sequentially, but down 20% year on year, while Nokia Mobile Phones sales for the fourth quarter are expected to rise 25% compared with the third quarter. All these estimates are in line with the company's earlier guidance.

Pro forma EPS (diluted) for the fourth quarter is anticipated to be at the upper end or even above the earlier indicated range of EUR 0.18 - EUR 0.20.

The mobile phone market has developed according to company expectations, with fourth quarter volumes expected to reach 105-110 million units. Sequental growth is expected to be highest in the Americas and Europe.

With the competitive pricing environment for mobile phones more stable, channel inventories normalized and record unit sales for the company in the first two months of the quarter, Nokia continues to expect significant market share gains in its mobile handset business this quarter. A strong start for the Nokia 8310 and brisk sales in the US, in both the TDMA and CDMA markets, have made an important contribution to fourth quarter sales so far.

Nokia is the world leader in mobile communications. Backed by its experience, innovation, user-friendliness and secure solutions, the company has become the leading supplier of mobile phones and a leading supplier of mobile, fixed and IP networks. By adding mobility to the Internet Nokia creates new opportunities for companies and further enriches the daily lives of people. Nokia is a broadly held company with listings on six major exchanges.

It should be noted that certain statements herein which are not historical facts, including, without limitation those regarding 1) the timing of product deliveries; 2) the Company's ability to develop and implement new products and technologies; 3) expectations regarding market growth and developments; 4) expectations for growth and profitability; and 5) statements preceded by "believes", "expects", "anticipates", "foresees", or similar expressions, are forward-looking statements. Because such statements involve risks and uncertainties, actual results may differ materially from the results currently expected by the Company. Factors that could cause such differences include, but are not limited to 1) industry conditions, such as the strength of product demand, the intensity of competition, pricing pressures, the acceptability of new product introductions such as Internet-ready phones, the introduction of new products by competitors, the impact of changes in technology, including the Company's success in the emerging 3G market, the introduction and marketing of new products and services by operators, the ability of the Company to source components from third parties without interruption and at reasonable prices, demand for vendor financing and the Company's ability and willingness to provide such financing and to mitigate the related exposure, and the success and financial condition of the Company's strategic partners and customers; 2) operating factors, such as continued success of manufacturing activities and the achievement of manufacturing efficiencies therein, continued success of product development and inventory risks due to shifts in market demand; 3) general economic conditions in the Company's principal geographic markets and in the wireless telecommunications industry as a whole, and fluctuations in exchange rates, including in particular the impact of the exchange rate between the Euro and the US dollar; as well as 4) the risk factors specified on pages 10 to 16 of the Company's Form 20-F for the year ended December 31, 2000.