Financial: Nokia reports record quarterly results and becomes the largest manufacturer of mobile phones - Company Financial Information

EDGE, On & About AT&T, Nov 2, 1998

Nokia's third quarter 1998 results show again strong growth in sales and high profits. Net sales totaled FIM 20 064 million (12 363 million in 1997), an increase of 62%. Operating profit increased by 81% compared to the third quarter 1997 and was FIM 4,081 million (2 254 million in 1997), representing an operating margin of 20.3% (18.2% in 1997).

Commenting on the results, Nokia President and CEO Jorma Ollila stated: "Our third quarter results show a continuation of the fundamental strengths in telecommunications markets and we again substantially surpassed all our previously reported quarterly results. Based on our strong performance and preliminary market data for the first nine months of 1998, we now feel confident in declaring that we have significantly increased our market share in mobile phones to become the largest manufacturer of mobile phones world-wide."

MILLION FIM         3Q 1998  3Q 1997  CHANGE %  1-9/1998  1-9/1997
NET SALES            20 064   12 363        62    53 354    36 755
NOKIA               6 185    4 370        42    17 765    12 458
TELECOMMUNICATIONS
NOKIA MOBILE PHONES 12 956    6 671        94    31 910    20 138
OTHER OPERATIONS     1 152    1 630       -29     4 448     4 937
OPERATING PROFIT      4 081    2 254        81     9 742     5 624
PROFIT BEFORE TAX
AND MINORITY         4 084    2 205        85     9 632     5 536
INTERESTS
PROFIT FROM           2 760    1 575        75     6 518     3 980
CONTINUING OPERATIONS
NET PROFIT            2 760    1 836        50     6 934     4 241
EARNINGS PER SHARE
FROM CONTINUING
OPERATIONS, FIM,       4.84     2.78        74     11.46      7.03
BASIC