Nokia copes with times, fulfills expectations — MobileMonday Global: Industry News

^{Q3 forecast sees growing market share} Nokia copes with times, fulfills expectations

16 Oct 2008 at 18:18 GMT Timo Poropudas

Nokia managed to meet the analysts’ expectations for the third quarter. It’s net sales of EUR 12.2 billion, were down 5% year on year and down 7% sequentially (up 1% and down 7% at constant currency). The main unit in Nokia’s current organization, Devices & Services managed net sales of EUR 8.6 billion, down 7% year on year and down 5% sequentially (down 1% and 5% at constant currency).

Services and software net sales turned out to be EUR 115 million (billings of EUR 140 million).

Nokia estimated industry mobile device volumes of 310 million units, up 8% year on year and up 2% sequentially while it’s own mobile device volumes were 117.8 million units, up 5% year on year and down 3% sequentially. This lead Nokia to estimate that it had mobile device market share of 38%, down from 39% in Q3 2007 and down from 40% in Q2 2008.

The average sales prices for Nokia mobile devices was EUR 72, down from EUR 74 in Q2 2008.

The Devices & Services unit gross margin of 36.5% up sequentially from 36.1% in Q2 2008.

The newly acquired Navteq net sales were EUR 156 million and non-IFRS operating margin of 18.5%.

Nokia Siemens Networks net sales were EUR 3.5 billion, down 5% year on year and down 14% sequentially (flat and down 14% at constant currency).

"As a result of our strong operational management and market position, Nokia was able to achieve solid margins and operating cash flow of 1.3 billion euros for the third quarter of 2008. With our scale, brand, improving product portfolio and low cost structure, we believe Nokia is well positioned for the current times," said CEO Olli-Pekka Kallasvuo.

Nokia says that it expects industry mobile device volumes in the fourth quarter 2008 to be up sequentially and its own mobile device market share in the fourth quarter 2008 to be at the same level or slightly up sequentially.

Nokia expects industry mobile volume will be approximately 1.26 billion in 2008, up from approximately 1.14 billion units Nokia estimated for 2007.

NOKIA IN THE THIRD QUARTER 2008
EUR million	Q3/2008	Q3/2007	YoY Change	Q2/2008	QoQ Change
Net sales	12 237	12 898	-5 %	13 151	-7 %
Devices & Services	8 605	9 238	-7 %	9 090	-5 %
NAVTEQ	156
Nokia Siemens Networks	3 503	3 674	-5 %	4 067	-14 %
Operating profit	1 469	1 862	-21 %	1 474	0 %
Devices & Services	1 602	1 959	-18 %	1 565	2 %
NAVTEQ	-80
Nokia Siemens Networks	-1	-120		-47
Operating margin	12.00 %	14.40 %		11.20 %
Devices & Services	18.60 %	21.20 %		17.20 %
NAVTEQ	-51.30 %
Nokia Siemens Networks	0.00 %	-3.30 %		-1.20 %
EPS, EUR Diluted	0.29	0.4	-28 %	0.29	0 %