Nokia managed to increase annual sales and sustain profitability for the fourth quarter and calendar year 2001.
For the fourth quarter, Nokia said it maintained "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. 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.