BBC Homepage World Service Education
BBC Homepagelow graphics version | feedback | help
BBC News Online
 You are in: Business
Front Page 
World 
UK 
UK Politics 
Business 
Market Data 
Economy 
Companies 
E-Commerce 
Your Money 
Business Basics 
Sci/Tech 
Health 
Education 
Entertainment 
Talking Point 
In Depth 
AudioVideo 



The BBC's Martin Shankleman reports
"Nokia is seen as a bell-weather stock"
 real 56k

Thursday, 19 July, 2001, 10:13 GMT 11:13 UK
Nokia profits down 20%
Nokia mobile phones
Nokia predicts flat sales in 2001 but a pick-up in 2002
Nokia, the world's biggest maker of mobile phones, has seen its profits slump by 20%.

Despite the fall, the Finnish company's second-quarter pre-tax profit of 1.17bn euros ($1.02bn) was still better than forecasts, which had been lowered by the battering the sector has taken.

Investors, relieved that the news was not worse, helped its shares briefly rise more than 10% before falling back.

The mobile phone firm predicted that sales growth would be flat to 5% in the third quarter, but did not give an indication of the outlook for the fourth quarter of the year.

Nokia's results come as computer giant IBM and Europe's largest software company both offered the tech sector a glimmer of hope by reporting increases in second-quarter profits.

"The result was quite neutral. The third-quarter outlook was a bit lower than what I expected, but I don't think that it will have a dramatic effect on market estimates for the rest of the year," said Michael Schroder of Opstock.

Results 'predictable'

The figures were in line with the shock profit warning issued on 12 June but better than the expected 1.09bn euros predicted by a Reuters poll of analysts.

The profit fall came despite sales during the period rising 5% to 7.3bn euros but the firm predicted that sales growth could return to as much as 35% in 2002.

The company also warned that its internet communications unit would not meet profits targets.

"The news was surprisingly predictable and close to estimates. They gave very little guidance to supplement what was already said with their profit warning. But read between the lines, and Nokia seems to be admitting it did not manage to extend its market share in Q2, unlike Motorola," said Mika Paloranta of Nordea Securities.

"This is absolutely a relief rally in the share, for there were some fears in the market of the company slashing its growth targets for the rest of the year," said Michael Schroder.

Search BBC News Online

Advanced search options
Launch console
BBC RADIO NEWS
BBC ONE TV NEWS
WORLD NEWS SUMMARY
PROGRAMMES GUIDE

Key stories

Consumer choice?

CLICKABLE MAP

CLICKABLE GUIDE

AUDIO VIDEO
See also:

12 Jun 01 | Business
Nokia issues surprise profit warning
20 Apr 01 | Business
Why Nokia is winning the phone war
20 Apr 01 | Business
Nokia profits up 6%
03 Apr 01 | Business
Nokia seeks to hurry 3G launches
27 Mar 01 | Business
Ericsson and Nokia cut jobs
15 Mar 01 | Business
Nokia lowers sales forecast
Internet links:


The BBC is not responsible for the content of external internet sites

Links to more Business stories are at the foot of the page.


E-mail this story to a friend

Links to more Business stories