Jan 22, 2009 (Hugin via COMTEX) -- Corporate news announcement processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement. ---------------------------------------------------------------------- -------------- Nokia 2008 net sales EUR 50.7 billion, non-IFRS EPS EUR 1.34 (reported EPS EUR 1.05)
Nokia Board of Directors will propose a dividend of EUR 0.40 per share for 2008 (EUR 0.53 per share for 2007)
Nokia Corporation Interim Report January 22, 2009 at 13.00 (CET+1)
The complete press release with tables is available at: http://www.nokia.com/results/Nokia_results2008Q4e.pdf
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| | | |Non-IFRS full year 2008|
| |Non-IFRS fourth quarter 2008 results1, 2| |results1, 2, 3 |
|------------------+----------------------------------------+-+-----------------------|
| | Q4/ | Q4/ | YoY | Q3/ | QoQ | | | | YoY |
|EUR million | 2008 | 2007 |Change | 2008 |Change | | 2008 | 2007 |Change |
|------------------+--------+-------+-------+-------+-------+-+--------+------+-------|
|Net sales | 12665| 15738| -19.5%| 12239| 3.5%| | 50722| 51108| -0.8%|
|------------------+--------+-------+-------+-------+-------+-+--------+------+-------|
| Devices & | | | | | | | | | |
|Services | 8141| 11141| -26.9%| 8605| -5.4%| | 35099| 37705| -6.9%|
|------------------+--------+-------+-------+-------+-------+-+--------+------+-------|
| NAVTEQ | 206| | | 157| 31.2%| | 363| | |
|------------------+--------+-------+-------+-------+-------+-+--------+------+-------|
| Nokia Siemens | | | | | | | | | |
|Networks | 4340| 4604| -5.7%| 3504| 23.9%| | 15319| 13443| 14.0%|
|------------------+--------+-------+-------+-------+-------+-+--------+------+-------|
| | | | | | | | | | |
|------------------+--------+-------+-------+-------+-------+-+--------+------+-------|
|Operating profit | 1239| 2634| -53.0%| 1756| -29.4%| | 7033| 7697| -8.6%|
|------------------+--------+-------+-------+-------+-------+-+--------+------+-------|
| Devices & | | | | | | | | | |
|Services | 983| 2541| -61.3%| 1602| -38.6%| | 6373| 7588| -16.0%|
|------------------+--------+-------+-------+-------+-------+-+--------+------+-------|
| NAVTEQ | 53| | | 29| 82.8%| | 82| | |
|------------------+--------+-------+-------+-------+-------+-+--------+------+-------|
| Nokia Siemens | | | | | | | | | |
|Networks | 225| 195| 15.4%| 177| 27.1%| | 757| 331| 128.7%|
|------------------+--------+-------+-------+-------+-------+-+--------+------+-------|
| | | | | | | | | | |
|------------------+--------+-------+-------+-------+-------+-+--------+------+-------|
|Operating margin | 9.8%| 16.7%| | 14.3%| | | 13.9%| 15.1%| |
|------------------+--------+-------+-------+-------+-------+-+--------+------+-------|
| Devices & | | | | | | | | | |
|Services | 12.1%| 22.8%| | 18.6%| | | 18.2%| 20.1%| |
|------------------+--------+-------+-------+-------+-------+-+--------+------+-------|
| NAVTEQ | 25.7%| | | 18.5%| | | 22.6%| | |
|------------------+--------+-------+-------+-------+-------+-+--------+------+-------|
| Nokia Siemens | | | | | | | | | |
|Networks | 5.2%| 4.2%| | 5.1%| | | 4.9%| 2.5%| |
|------------------+--------+-------+-------+-------+-------+-+--------+------+-------|
| | | | | | | | | | |
|------------------+--------+-------+-------+-------+-------+-+--------+------+-------|
|EPS, EUR Diluted | 0.26| 0.48| -45.8%| 0.33| -21.2%| | 1.34| 1.49| -10.1%|
|------------------+----------------------------------------+-+-----------------------|
| | | |Reported full year 2008|
| |Reported fourth quarter 2008 results1 | |results1,3 |
|------------------+----------------------------------------+-+-----------------------|
| | Q4/ | Q4/ | YoY | Q3/ | QoQ | | | | YoY |
|EUR million | 2008 | 2007 |Change | 2008 |Change | | 2008 | 2007 |Change |
|------------------+--------+-------+-------+-------+-------+-+--------+------+-------|
|Net sales | 12662| 15717| -19.4%| 12237| 3.5%| | 50710| 51058| -0.7%|
|------------------+--------+-------+-------+-------+-------+-+--------+------+-------|
| Devices & | | | | | | | | | |
|Services | 8141| 11141| -26.9%| 8605| -5.4%| | 35099| 37705| -6.9%|
|------------------+--------+-------+-------+-------+-------+-+--------+------+-------|
| NAVTEQ | 205| | | 156| 31.4%| | 361| | |
|------------------+--------+-------+-------+-------+-------+-+--------+------+-------|
| Nokia Siemens | | | | | | | | | |
|Networks | 4338| 4583| -5.3%| 3503| 23.8%| | 15309| 13393| 14.3%|
|------------------+--------+-------+-------+-------+-------+-+--------+------+-------|
| | | | | | | | | | |
|------------------+--------+-------+-------+-------+-------+-+--------+------+-------|
|Operating profit | 492| 2492| -80.3%| 1469| -66.5%| | 4966| 7985| -37.8%|
|------------------+--------+-------+-------+-------+-------+-+--------+------+-------|
| Devices & | | | | | | | | | |
|Services | 766| 2594| -70.5%| 1602| -52.2%| | 5816| 7584| -23.3%|
|------------------+--------+-------+-------+-------+-------+-+--------+------+-------|
| NAVTEQ | -73| | | -80| -8.8%| | - 153| | |
|------------------+--------+-------+-------+-------+-------+-+--------+------+-------|
| Nokia Siemens | | | | | | | | | |
|Networks | -179| 0| | -1| | | - 301| -1308| -77.0%|
|------------------+--------+-------+-------+-------+-------+-+--------+------+-------|
| | | | | | | | | | |
|------------------+--------+-------+-------+-------+-------+-+--------+------+-------|
|Operating margin | 3.9%| 15.9%| | 12.0%| | | 9.8%| 15.6%| |
|------------------+--------+-------+-------+-------+-------+-+--------+------+-------|
| Devices & | | | | | | | | | |
|Services | 9.4%| 23.3%| | 18.6%| | | 16.6%| 20.1%| |
|------------------+--------+-------+-------+-------+-------+-+--------+------+-------|
| NAVTEQ | -35.6%| | | -51.3%| | | -42.4%| | |
|------------------+--------+-------+-------+-------+-------+-+--------+------+-------|
| Nokia Siemens | | | | | | | | | |
|Networks | -4.1%| 0.0%| | 0.0%| | | -2.0%| -9.8%| |
|------------------+--------+-------+-------+-------+-------+-+--------+------+-------|
| | | | | | | | | | |
|------------------+--------+-------+-------+-------+-------+-+--------+------+-------|
|EPS, EUR Diluted | 0.15| 0.47| -68.1%| 0.29| -48.3%| | 1.05| 1.83| -42.6%|
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Note 1 relating to NAVTEQ: On July 10, 2008, Nokia completed the acquisition of NAVTEQ Corporation. NAVTEQ is a separate reportable segment of Nokia starting from the third quarter 2008. Accordingly, the results of NAVTEQ are not available for the prior periods.
Note 2 relating to non-IFRS results: Non-IFRS results exclude special items for all periods. In addition, non-IFRS results exclude intangible asset amortization, other purchase price accounting related items and inventory value adjustments arising from i) the formation of Nokia Siemens Networks and ii) all business acquisitions completed after June 30, 2008. More specific information about the exclusions from the non-IFRS results may be found in this press release on pages 3 and 11-16 for the quarterly periods and pages 24 -29 for the full year 2008 and 2007.
Nokia believes that these non-IFRS financial measures provide meaningful supplemental information to both management and investors regarding Nokia's performance by excluding the above-described items that may not be indicative of Nokia's business operating results. These non-IFRS financial measures should not be viewed in isolation or as substitutes to the equivalent IFRS measure(s), but should be used in conjunction with the most directly comparable IFRS measure(s) in the reported results.
A reconciliation of the non-IFRS results to our reported results for Q4 2008 and Q4 2007 as well as for full year 2008 and 2007 can be found in the tables on pages 11-16 and 25-29 of this press release. A reconciliation of our Q3 2008 non-IFRS results can be found on pages 12-16 of our Q3 2008 Interim Report of October 16, 2008.
Note 3 relating to Nokia Siemens Networks: The results of Nokia Group and Nokia Siemens Networks for the full year 2008 are not directly comparable to the results for the full year 2007, which include the results of Nokia's former Networks business group for the first quarter 2007 and those of Nokia Siemens Networks from April 1, 2007 through December 31, 2007.
FOURTH QUARTER 2008 HIGHLIGHTS - Nokia net sales of EUR 12.7 billion, down 19% year on year and up 3% sequentially (down 18% and up 1% at constant currency). - Devices & Services net sales of EUR 8.1 billion, down 27% year on year and down 5% sequentially (down 25% and 8% at constant currency). - Services and software net sales of EUR 158 million, up 37% sequentially. - Estimated industry mobile device volumes of 305 million units, down 9% year on year and down 2% sequentially. - Nokia mobile device volumes of 113.1 million units, down 15% year on year and down 4% sequentially. - Nokia estimated mobile device market share of 37% in Q4 2008, down from 40% in Q4 2007 and down from 38% in Q3 2008. The full year 2008 estimated market share was 39%. - Nokia mobile device ASP of EUR 71, down from EUR 72 in Q3 2008. - Devices & Services gross margin of 33.8%, down from 36.5% in Q3 2008. - NAVTEQ net sales of EUR 205 million, up 31% sequentially from EUR 156 million, and non-IFRS operating margin of 25.7% (18.5% in Q3 2008) - Nokia Siemens Networks net sales of EUR 4.3 billion, down 5% year on year and up 24% sequentially (down 4% and up 23% at constant currency). - Nokia Siemens Networks achieved substantially all of the EUR 2.0 billion of targeted annual cost synergies by the end of 2008. - Operating cash flow was negative EUR 0.3 billion, including the one-time EUR 1.7 billion lump-sum cash payment made to Qualcomm as part of the previously announced license agreement. Excluding the Qualcomm payment, operating cash flow was EUR 1.4 billion. - Total cash and other liquid assets of EUR 6.8 billion at the end of Q4 2008.
OLLI-PEKKA KALLASVUO, NOKIA CEO: "In recent weeks, the macroeconomic environment has deteriorated rapidly, with even weaker consumer confidence, unprecedented currency volatility and credit tightness continuing to impact the mobile communications industry. We are taking action to reduce overall costs and to preserve our strong capital structure. This is clearly our top priority in the current economic environment. However, it is important for Nokia to continue investing at the proper pace in future growth. We believe Nokia has a tremendous opportunity to capture value as the Internet services market evolves and grows. Being a catalyst for change has been our heritage and it will be our future."
INDUSTRY AND NOKIA OUTLOOK - Nokia expects industry mobile device volumes in the first quarter 2009 to decline sequentially to a greater extent than the seasonal sequential decrease in the first quarter of the past few years. - Nokia expects its mobile device market share in the first quarter 2009 to be at approximately the same level sequentially. - While noting the extremely limited visibility, Nokia now expects 2009 industry mobile device volumes to decline approximately 10% from 2008 levels. Nokia expects the decline to be greater in the first half than in the second half of the year. This is an update to Nokia's earlier estimate that 2009 industry mobile device volumes would decline 5% or more from 2008 levels. - Nokia continues to target an increase in its market share in mobile devices in 2009. - Nokia now targets its non-IFRS operating margin in Devices & Services to be more than 10% in the first half 2009 and to be in the teens for the second half 2009, rather than in the teens for the full year 2009 as previously targeted. - Nokia targets its annualized non-IFRS operating expense run rate in Devices & Services to be lower than EUR 6 billion by the end of 2010. This would represent a reduction of more than EUR 700 million to the annualized run rate at the beginning of 2009. Nokia targets that a majority of the reduction will happen during 2009. - Nokia and Nokia Siemens Networks continue to expect the mobile infrastructure and fixed infrastructure and related services market to decline 5% or more in Euro terms in 2009, from 2008 levels. - Nokia and Nokia Siemens Networks continue to target for Nokia Siemens Networks market share to remain constant in 2009, compared to 2008.