Nokia reports sales up, operating profit down in Q1 2007

Nordic Business Report, April 19, 2007

NORDIC BUSINESS REPORT-19 April 2007-Nokia reports sales up, operating profit down in Q1 2007(C)1994-2007 M2 COMMUNICATIONS LTD http://www.m2.com

Finnish mobile communications company Nokia (NYSE: NOK) reported on Thursday (19 April) an operating profit of EUR1.27bn on net sales of EUR9.86bn for the financial period January-March 2007.

Operating profit for the three-month period decreased from EUR1.37bn while net sales increased from EUR9.51bn, as compared to the corresponding period in 2006.

Nokia mobile device volumes reached 91.1 million units, an increase of 21% year-on-year, resulting in an estimated market share of 36%. Market volume for the same period was estimated at 253 million units, an increase of 18%.

Mobile Phone net sales decreased by 5% to EUR5.58bn, while operating profit decreased by 14% to EUR936m. Multimedia net sales increased by 28% to EUR2.25bn and operating profit increased by 31% EUR424m from a year ago.

Enterprise Solutions net sales grew 75% to EUR326m, while the operating loss improved to EUR38m from EUR66m a year ago. Networks net sales stayed nearly the same at EUR1.70bn, while operating profit decreased by 48% to EUR78m.

Earnings per share (EPS) in the first quarter of 2007 amounted to EUR0.25, the same as year ago. Operating margin for the first quarter decreased to 12.9% from 14.4% in the first quarter of 2006.

Nokia expects industry mobile device volumes in the second quarter 2007 to be slightly up sequentially. The company continues to expect industry mobile device volumes in 2007 to grow by up to 10% from the approximately 978 million units Nokia estimates for 2006.

Nokia, headquartered in Espoo in Finland, is a global mobile phone and network equipment manufacturer. It has nearly 59,000 employees worldwide. Nokia is listed on the Helsinki, Stockholm, Frankfurt and New York stock exchanges.

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