Wednesday, January 23, 2008

Nokia Posts Q4 2007 Net Sales of EUR 15.7 Billion

Nokia's fourth quarter 2007 net sales increased 34% to EUR 15.7 billion, compared to EUR 11.7 billion in the fourth quarter 2006. At constant currency, group net sales would have been up 40% year on year. Nokia's fourth quarter 2007 operating profit increased 64% to EUR 2.5 billion (including the EUR 13 million net negative impact of special items), compared to EUR 1.5 billion in the fourth quarter 2006 (including a negative special item of EUR 39 million).

Some highlights from Q4:

  • Nokia diluted EPS of EUR 0.47, growing 57% from Q4 2006, excluding special items.

  • Nokia operating margin of 15.9%, up sequentially from 14.6% in Q3 2007, excluding special items.

  • Nokia operating cash flow of EUR 2.7 billion.

  • Nokia device volumes of 133.5 million units, up 20% sequentially and up 27% year on year.

  • Estimated industry device volumes of 336 million units, up 17% sequentially and up 16% year on year.

  • Nokia estimated device market share of 40%, up from 39% in Q3 2007 and up from 36% in Q4 2006.

  • Nokia device ASP of EUR 83, up from EUR 82 in Q3 2007.

  • Total device gross and operating margins increased significantly sequentially and year on year.

  • Several key devices started shipping in volume across the product range including: Nokia 1200/1208, Nokia 2630, Nokia 5310, Nokia 6500 and Nokia N95 8GB.

  • Nokia Siemens Networks net sales increased 25% sequentially.

  • Nokia Siemens Networks operating margin, excluding special items, was 1.4%, and was 4.3% excluding special items and Purchase Price Accounting related items.

  • Nokia Siemens Networks continued to be on track to deliver the targeted annual EUR 2 billion cost synergy target, as previously announced.

Olli-Pekka Kallasvuo, Nokia CEO said "It was a year of important strategic initiatives by Nokia, with Nokia Siemens Networks starting operations, our internet services effort taking shape around Ovi, and the announcement of the pending acquisition of NAVTEQ. Facing a market that remains intensely competitive, we are continuing to improve our leading device portfolio as well as execution at Nokia Siemens Networks. With this we believe Nokia is well positioned for growth in 2008."

See also