Nokia Gains Market Share

Nokia sees market share gains with Q2 profits in line on lower sales, according to mid-quarter update

June 11, 2002

1 Min Read

ESPOO, Finland -- Based on developments during April and May, the company sees second-quarter net sales declining by about 2-6% to about EUR 6.9-7.2 billion, compared with earlier guidance of 2-7% year-on-year growth. Sales of Nokia Mobile Phones in the second quarter are expected to grow 0-4% year on year instead of the previously stated 5-10%. Nokia Networks sales are expected to decrease by 20-25%, compared with earlier guidance of a decrease of 5-10% year on year. Pro forma EPS (diluted) is estimated to be within the earlier indicated range of EUR 0.18 and EUR 0.20, compared with EUR 0.17 a year ago. In mobile phones, Nokia expects its market share for the second quarter to increase (both sequentially and year on year) to the level of 38% during the quarter, with the company's year-on-year volume growth exceeding 10%. The company estimates overall mobile phone market volume to grow in the second quarter by about 5%, compared with 89 million in the first quarter. In the second quarter, Nokia Mobile Phones pro forma operating margins are expected to be above 20%, demonstrating Nokia's ongoing strong product competitiveness in this market. Nokia Networks sales are expected to be lower than estimated mainly due to cautious investments amongst operator customers. Nokia Corp.

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