Helsinki, Finland - Weaker sales in the Americas, offset by strong growth in Europe, brought about flat sales for Nokia's mobile phone segment in the fourth quarter, with pro forma revenue hitting $7.24 billion, up from $7.20 billion in the same three months in 2001.
Fourth quarter pro forma operating profit for Nokia Mobile Phones, however, increased 12 percent, to $1.79 billion, compared with $1.59 billion in the year-ago period.
Mobile phone unit volume sales hit 46 million in the fourth quarter, Nokia's largest-ever quarterly figure. Company phone sales for 2002 reached a record 152 million, an increase of 9 percent over 2001.
According to preliminary estimates, Nokia said the mobile phone market grew more than 5 percent in 2002, reaching 405 million units, up from about 380 million units the previous year. Demand in the Americas moved ahead by about 4 percent, compared with 2001.
Fourth quarter overall mobile phone market volume is estimated at about 117 million units, while Nokia anticipates total mobile phone market growth in 2003 of 10 percent or slightly more.
First quarter sales for Nokia Mobile Phones are expected to range from flat to 9 percent. Sales growth for the second quarter is estimated to be higher than in the first quarter.
For the year, sales in the mobile phone segment also were flat, coming in at a pro forma $24.91 billion, compared with $24.85 billion in 2001. Pro forma operating profit in the segment increased 14 percent for the 12 months, to $5.7 billion, up from $5 billion the previous year.
Overall pro forma sales at Nokia edged upward 1 percent in the fourth quarter, hitting $9.5 billion, up from $9.4 billion in the year-ago period.
Pro forma net profit rose 8 percent in the three months, to $1.3 billion, compared with $1.2 billion year over year. However, overall net profit for the fourth quarter, as reported, more than doubled to $1.1 billion, up from $482.9 million in the same three months in 2001. The 2001 results include nearly $790 million in restructuring costs, write-downs and goodwill.
For the 12 months, however, Nokia pro forma sales dropped 4 percent, to $32.2 billion, down from $33.5 billion in 2001.
Pro forma net profit for the 12 months rose 4 percent, coming in at $4.2 billion, up from $4.1 billion in the same 12 months a year earlier. For the 12 months, overall net profit, as reported, came in at $3.6 billion, compared with $2.4 billion year over year.