Helsinki, Finland - Bolstered by what Nokia said was strong execution, the companyboosted sales of mobile phones in the second quarter 1 percent, up to $5.43 billion, compared with $5.38 billion in the year-ago period.
The company said this reflected growth in the Asia Pacific region and Europe, offset by lower sales in the Americas.
Thanks to tight cost control, profit in the mobile phones segment climbed 22 percent, reaching $1.2 billion in the second three months, up from $965.4 million in the second quarter of 2001. At the same time, operating margin in its mobile phones business climbed 280 basis points in the second quarter, to 21.7 percent, compared with 17.9 percent the previous year.
Nokia said its mobile phone unit volume increased by about 12 percent in the second quarter year over year, to about 36 million. The company said this figure clearly outpaced overall market volume, which it said was estimated at about 4 percent growth, or about 93 million units. Nokia said its year-on-year overall market volume growth was strongest in the Americas. Its full-year handset market estimate is about 400 million units, down from an earlier forecast of 420 million.
For the six months, sales in the mobile phones segment dropped 3 percent, down to $10.9 billion, compared with $11.2 billion in the same period in 2001.
Operating profit in the phones segment also increased, up a healthy 10 percent to $2.4 billion, compared with $2.2 billion the previous year. Operating margin for the six months in its mobile phone business rose 260 basis points, hitting 22 percent, up from 19.4 percent in the first six months of 2001.
Although overall Nokia sales decreased 6 percent in the second quarter, down to $7 billion, from $7.5 billion in the year-ago second three months, net profit climbed 9 percent, to $910 million, compared with $834.6 million in the same quarter in 2001.
For the six months, overall sales were off 9 percent, to $14 billion, compared with $15.4 billion in the second half of last year. Operating profit took a slight hit, dropping 1 percent, to $2.39 billion in the second half, compared with $2.59 billion year over year.
Looking ahead, Nokia expects sales in the third quarter to be in the range of $7.2 billion to $7.7 billion, compared with $7 billion in the third quarter of 2001. Overall sales growth for the second half is estimated to be between 3 percent and 10 percent, in part driven by volume deliveries of a number of advanced high value-added phone models.
Pro forma operating margin for the mobile phones segment is expected to continue at around 20 percent for the second half of 2002, with the fourth quarter being stronger than the third.