Nokia Boosts Yearly Sales
By Jeff Malester -- TWICE, 1/24/2002
Helsinki, Finland - In a year fraught with intense competition, extreme volatility and a weakened global economy, Nokia managed to increase annual sales and sustain 'solid' profitability.
For the fourth quarter, Nokia said it achieved significant market share gains, while 'maintaining excellent profitability' in its mobile phones business. The company reported its 12-month market share in mobile phones increased for the fourth consecutive year, reaching about 37 percent, almost double the 19 percent share level in 1997.
Although sales in Nokia's mobile phones segment, by far the company's largest, remained completely flat in the fourth quarter at $5.87 billion, the mobile phones segment enjoyed a 2 percent increase in operating profit on a pro forma basis for the three months. This hit $1.29 billion for the period, up from $1.26 billion in the year-ago fourth quarter. Pro forma results exclude goodwill amortization and non-recurring items.
For the year, sales in Nokia's mobile phones segment climbed 6 percent, to $20.3 billion, up from $19.1 billion in 2000. Operating profit in the segment, however, dipped 5 percent on a pro forma basis over the 12 months, down to $4.1 billion, compared with $4.3 billion in 2000.
Overall Nokia sales in the fourth quarter dropped 5 percent, reaching $7.7 billion, down from $8.1 billion in the year-ago three months. For the year, however, overall net sales climbed 3 percent, to $27.3 billion, up from $26.6 billion.
On a pro forma basis, overall operating profit slid 8 percent in the fourth quarter, down to $1.4 billion, compared with $1.5 billion the previous year. Pro forma operating profit dropped even further over the 12 months, dipping 11 percent, to $4.6 billion, down from $5.1 billion in 2000.
Overall pro forma net profit for the quarter was off 5 percent, hitting $1 billion, down from $1.1 billion in the same quarter in 2000. Overall pro forma net profit for the year dropped 6 percent, to $3.3 billion, compared with $3.5 billion the previous year.
Net profit in the fourth quarter, including non-recurring charges, was down 63 percent, reaching $393.7 million, compared with $1.1 billion in the year-ago three months. For the year, net profit, including charges, dropped 44 percent, to $1.9 billion, down from $3.4 billion in 2000.
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