Nokia Expects Strong Results
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Despite a downturn in the world economy in general and difficult results for many wireless firms, Nokia said Thursday that it expects to increase its earnings this year. It said, however, that it won't be as profitable as it once predicted.
"We expect to see solid growth for the first quarter as a whole, with better than anticipated margins," said Nokia chairman and CEO Jorma Ollila.
The company said its earlier profit estimates of about 0.19 EUR per share for the first quarter still will hold. It expected sales growth of between 30 and 35 percent for the year for its networking products and between 15 and 20 percent for its wireless phones.
Combining all lines, the company predicted 20 percent annual sales growth. It previously had forecast growth of between 25 and 30 percent.
Overall, it estimated the total wireless phone shipments for 2001 to be between 450 and 500 million units, which reflects difficult market conditions and is less than the company's earlier forecast of as much as 550 million units.
However, the company said that its inventories of wireless phones have come down since the beginning of the year, which will help its unit shipments and profitability. It also said it was experiencing better-than-expected margins.
The company said it will release full first quarter results and guidance for the second quarter on April 20.