Nokia to Hit Q2 EPS Guidance

Nokia expects reported EPS to be within the previously guided range of €0.12 and €0.15

June 10, 2003

1 Min Read

HELSINKI -- Nokia today provided a scheduled mid-quarter update to the company's business outlook for the second quarter 2003.

Based on developments in the first two months of the second quarter, pro forma EPS (diluted) for the Nokia group is expected to be within the previously guided range of EUR 0.13 and EUR 0.16. This largely reflects continued strong mobile phone operating margins and includes a previously stated restructuring charge of EUR 350 to 400 million in the company's network infrastructure business. Nokia's reported EPS (diluted) is expected to be between EUR 0.12 and EUR 0.15.

In mobile phones, second-quarter sales growth is expected to be positive but at the low end or below the guided range of 4% to 12% year on year, with sales growth slightly less for the Nokia Group. Sales reflect continued general economic weakness in Europe and the US, the impact of currency fluctuations, and the effect of SARS on consumer behaviour, especially in China. At Nokia Mobile Phones, strong profitability is expected to continue. Nokia's market share for the second quarter is estimated to be higher than the first quarter, 2003.

Second-quarter sales at Nokia Networks are estimated to decrease by 0 to 5% year on year, as operators in all major regions continue to decrease their investments. Pro forma operating profit for Nokia Networks, if the restructuring charge were excluded, is estimated to be close to breakeven in the second quarter.

Nokia Corp.

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