Nokia reports operating profit and sales up in 2007

Nordic Business Report, Jan 24, 2008

NORDIC BUSINESS REPORT-24 January 2008-Nokia reports operating profit and sales up in 2007(C)1994-2008 M2 COMMUNICATIONS LTD http://www.m2.com

Finnish telecomms solutions provider Nokia (NYSE: NOK) reported on Thursday (24 January) an operating profit of EUR7.99bn on net sales of EUR51.1bn for the financial year 2007, with both operating profit and net sales for the 12-month period increased, respectively from

EUR5.49bn and EUR41.1bn, as compared to 2006.

Nokia mobile device volumes reached a record 437 million units, an increase of 26%, resulting in an estimated market share of 38%. Market volume for the same period was estimated at 1.14bn units, an increase of 16%.

Mobile Phones net sales in 2007 increased by 1% to EUR25.1bn from EUR24.7bn in 2006, while operating profit increased to EUR5.43bn from EUR4.10bn. Multimedia net sales increased by 34% to EUR10.5bn from EUR7.88bn in 2007, and operating profit improved to EUR2.23bn from EUR1.32bn a year ago.

Enterprise Solutions net sales grew 101% to EUR2.07bn from EUR1.03bn, while the operating loss stayed at EUR258m. Net sales for the joint venture Nokia Siemens Networks in 2007 amounted to EUR13.4bn, while the operating result was a loss of EUR1.31bn.

Operating profit for the fourth quarter of 2007 amounted to EUR2.49bn on net sales of EUR15.7bn. Both operating profit and net sales for the quarter increased, respectively from EUR1.52bn and EUR111.7bn, as compared to the corresponding period in 2006.

The company's fourth quarter mobile device volume increased by 36% to 133.5 million units, resulting in an estimated market share of 40%. Earnings per share (EPS) in the fourth quarter of 2007 amounted to EUR0.47, while the full-year EPS increased to EUR1.83 from EUR1.44 in 2006.

Operating margin for the full year increased to 15.6% from 13.3% in 2006. Nokia's board of directors will propose a dividend of EUR0.53 per share for 2007, as compared to EUR0.43 per share for 2006.

Nokia expects industry mobile device volumes in the first quarter 2008 to decline sequentially, reflecting normal industry seasonality, following a strong fourth quarter 2007. The company's device market share in the first quarter of 2008 is expected to be at approximately the same level sequentially.

Nokia continues to expect industry mobile device volumes in 2008 to grow approximately 10% from the approximately 1.14 billion units Nokia estimates for 2007. Nokia also continues to expect very slight growth for the mobile and fixed infrastructure and related services market in euro terms in 2008.

Nokia, headquartered in Espoo in Finland, is a global mobile phone and network equipment manufacturer. It has some 65,324 employees worldwide. Nokia is listed on the Helsinki, Stockholm, Frankfurt and New York stock exchanges

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