Nokia trimmed its financial guidance, saying net sales for Q1 2004 are now expected to be about EUR 6.6 billion, representing a decline of 2% compared to the Q1 2003 (vs. guidance of up 3 – 7%). The company expects to meet its reported earnings per share (diluted) guidance with the EPS estimated to be EUR 0.17 (vs. guidance of EUR 0.17 – 0.19).
Nokia said sales by its Mobile Phones and Multimedia business groups were below expectations. Mobile Phones sales declined in Europe and Asia due to lower than expected volumes and a product mix weighted more towards the low end. Due to certain gaps in its product portfolio, mainly in the mid range, the company was not able to fully capitalize on positive market developments. Global mobile phone volume growth is estimated to have been in excess of 25% in the first quarter 2004 while Nokia volumes grew by 19%. Networks exceeded expectations with estimated sales of EUR 1.4 billion, which represents 16% growth compared to the sales in the first quarter 2003. Enterprise Solutions is expected to report sales slightly better than planned.
Full results are expected on 16-April-2004. http://www.nokia.com
