THIRD QUARTER 2008 HIGHLIGHTS
- Nokia net sales of EUR 12.2 billion, down 5% year on year and down 7% sequentially (up 1% and down 7% at constant currency).
- Devices & Services net sales of EUR 8.6 billion, down 7% year on year and down 5% sequentially (down 1% and 5% at constant currency).
- Services and software net sales of EUR 115 million (billings of EUR 140 million).
- Estimated industry mobile device volumes of 310 million units, up 8% year on year and up 2% sequentially.
- Nokia mobile device volumes of 117.8 million units, up 5% year on year and down 3% sequentially.
- Nokia estimated mobile device market share of 38%, down from 39% in Q3 2007 and down from 40% in Q2 2008.
- Nokia mobile device ASP of EUR 72, down from EUR 74 in Q2 2008.
- Devices & Services gross margin of 36.5% up sequentially from 36.1% in Q2 2008.
- NAVTEQ net sales of EUR 156 million and non-IFRS operating margin of 18.5%.
- Nokia Siemens Networks net sales of EUR 3.5 billion, down 5% year on year and down 14% sequentially (flat and down 14% at constant currency).
- Total cash and other liquid assets of EUR 7.2 billion at the end of Q3 2008.
OLLI-PEKKA KALLASVUO, NOKIA CEO:
\\\"As a result of our strong operational management and market position, Nokia was able to achieve solid margins and operating cash flow of 1.3 billion euros for the third quarter of 2008. With our scale, brand, improving product portfolio and low cost structure, we believe Nokia is well positioned for the current times.\\\"
INDUSTRY AND NOKIA OUTLOOK
- Nokia expects industry mobile device volumes in the fourth quarter 2008 to be up sequentially.
- Nokia expects its mobile device market share in the fourth quarter 2008 to be at the same level or slightly up sequentially.
- Nokia expects industry mobile volume will be approximately 1.26 billion in 2008, up from approximately 1.14 billion units Nokia estimated for 2007.
- Nokia continues to target an increase in its market share in mobile devices in 2008.
- Nokia and Nokia Siemens Networks continue to target for Nokia Siemens Networks market share to remain constant in 2008, compared to 2007.
- Nokia and Nokia Siemens Networks continue to expect the mobile infrastructure and fixed infrastructure and related services market to be flat in Euro terms in 2008, compared to 2007.
- Nokia and Nokia Siemens Networks continued cost synergy target for Nokia Siemens Networks is to achieve substantially all of the EUR 2.0 billion of targeted annual cost synergies by the end of 2008, as previously announced.
Q3 2008 FINANCIAL HIGHLIGHTS
(Comparisons are given to the third quarter 2007 results, unless otherwise indicated.)
The non-IFRS results exclusions
Q3 2008 - EUR 287 million consisting of:
- EUR 59 million restructuring charge and other one-time items in Nokia Siemens Networks.
- EUR 119 million of intangible asset amortization and other purchase price accounting related items arising from the formation of Nokia Siemens Networks.
- EUR 109 million of intangible asset amortization and other purchase price accounting related items arising from the acquisition of NAVTEQ.
Q2 2008 - EUR 580 million consisting of:
- EUR 259 million of charges related to closure of the Bochum site in Germany.
- EUR 201 million restructuring charge and other one time items.
- EUR 120 million of intangible asset amortization and other purchase price accounting related items arising from the formation of Nokia Siemens Networks
Q3 2007 - EUR 170 million (net) consisting of:
- EUR 86 million restructuring charge and other one-time items in Nokia Siemens Networks.
- EUR 60 million gain on sale of real estate.
- EUR 144 million of intangible asset amortization and other purchase price accounting related items arising from the formation of Nokia Siemens Networks.
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 the formation of Nokia Siemens Networks and from all business acquisitions completed after June 30, 2008. For the preceding periods, non-IFRS results exclude such items and adjustments arising from the formation of Nokia Siemens Networks only.
Nokia Group
Nokia\\\'s third quarter 2008 net sales decreased 5% to EUR 12.2 billion, compared with EUR 12.9 billion in the third quarter 2007. At constant currency, group net sales would have increased 1% year on year and decreased 7% sequentially.
The following chart sets out the year on year and sequential growth rates in our net sales on a reported basis and at constant currency for the periods indicated.
