Ad hoc:NOKIA:Ad hoc: Nokia Q4 2009 net sales EUR 12.0 billion, non-IFRS EPS EUR 0.25 (reported EPS E
(Thomson Reuters ONE) - NOKIA / / Ad hoc: Nokia Q4 2009 net sales EUR 12.0 billion, non-IFRS EPS EUR 0.25 (reported EPS EUR 0.26) processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement. Nokia Board of Directors will propose a dividend of EUR 0.40 per share for 2009(EUR 0.40 per share for 2008)Nokia CorporationInterim ReportJanuary 28, 2010 at 13.00 (CET+1)The complete press release with tables is availableat:http://www.nokia.com/results/Nokia_results2009Q4e.pdf+-----------------------------------------------------+-+----------------------+| | | Non-IFRS full year|| Non-IFRS fourth quarter 2009 results1 | | 2009 results1, 2|+------------+-------+-------+--------+------+--------+-+------+------+--------+| | Q4/| Q4/| YoY| Q3/| QoQ| | | | YoY||EUR million | 2009| 2008| Change| 2009| Change| | 2009| 2008| Change|+------------+-------+-------+--------+------+--------+-+------+------+--------+|Net sales | 11 988| 12 665| -5.3%| 9 810| 22.2%| |40 987|50 722| -19.2%|+------------+-------+-------+--------+------+--------+-+------+------+--------+| Devices & | | | | | | | | | ||Services | 8 179| 8 141| 0.5%| 6 915| 18.3%| |27 853|35 099| -20.6%|+------------+-------+-------+--------+------+--------+-+------+------+--------+| NAVTEQ | 225| 206| 9.2%| 166| 35.5%| | 673| 363| |+------------+-------+-------+--------+------+--------+-+------+------+--------+| Nokia | | | | | | | | | ||Siemens | | | | | | | | | ||Networks | 3 625| 4 340| -16.5%| 2 760| 31.3%| |12 574|15 319| -17.9%|+------------+-------+-------+--------+------+--------+-+------+------+--------++------------+-------+-------+--------+------+--------+-+------+------+--------+|Operating | | | | | | | | | ||profit | 1 473| 1 239| 18.9%| 741| 98.8%| | 3 503| 7 033| -50.2%|+------------+-------+-------+--------+------+--------+-+------+------+--------+| Devices & | | | | | | | | | ||Services | 1257| 983| 27.9%| 787| 59.7%| | 3 488| 6 373| -45.3%|+------------+-------+-------+--------+------+--------+-+------+------+--------+| NAVTEQ | 54| 53| 1.9%| 43| 25.6%| | 121| 82| |+------------+-------+-------+--------+------+--------+-+------+------+--------+| Nokia | | | | | | | | | ||Siemens | | | | | | | | | ||Networks | 201| 225| -10.7%| -53| | | 28| 757| -96.3%|+------------+-------+-------+--------+------+--------+-+------+------+--------++------------+-------+-------+--------+------+--------+-+------+------+--------+|Operating | | | | | | | | | ||margin | 12.3%| 9.8%| | 7.6%| | | 8.5%| 13.9%| |+------------+-------+-------+--------+------+--------+-+------+------+--------+| Devices & | | | | | | | | | ||Services | 15.4%| 12.1%| | 11.4%| | | 12.5%| 18.2%| |+------------+-------+-------+--------+------+--------+-+------+------+--------+| NAVTEQ | 24.0%| 25.7%| | 25.9%| | | 18.0%| 22.6%| |+------------+-------+-------+--------+------+--------+-+------+------+--------+| Nokia | | | | | | | | | ||Siemens | | | | | | | | | ||Networks | 5.5%| 5.2%| | -1.9%| | | 0.2%| 4.9%| |+------------+-------+-------+--------+------+--------+-+------+------+--------++------------+-------+-------+--------+------+--------+-+------+------+--------+|EPS, EUR | | | | | | | | | ||Diluted | 0.25| 0.26| -3.8%| 0.17| 47.1%| | 0.66| 1.34| -50.7%|+------------+-------+-------+--------+------+--------+-+------+------+--------+| | | Reported full year|| Reported fourth quarter 2009 results | | 2009 results2|+------------+-------+-------+--------+------+--------+-+------+------+--------+| | | | YoY| Q3/| QoQ| | | | YoY||EUR million |Q4/2009|Q4/2008| Change| 2009| Change| | 2009| 2008| Change|+------------+-------+-------+--------+------+--------+-+------+------+--------+|Net sales | 11 988| 12 662| -5.3%| 9 810| 22.2%| |40 984|50 710| -19.2%|+------------+-------+-------+--------+------+--------+-+------+------+--------+| Devices & | | | | | | | | | ||Services | 8 179| 8 141| 0.5%| 6 915| 18.3%| |27 853|35 099| -20.6%|+------------+-------+-------+--------+------+--------+-+------+------+--------+| NAVTEQ | 225| 205| 9.8%| 166| 35.5%| | 670| 361| |+------------+-------+-------+--------+------+--------+-+------+------+--------+| Nokia | | | | | | | | | ||Siemens | | | | | | | | | ||Networks | 3 625| 4 338| -16.4%| 2 760| 31.3%| |12 574|15 309| -17.9%|+------------+-------+-------+--------+------+--------+-+------+------+--------++------------+-------+-------+--------+------+--------+-+------+------+--------+|Operating | | | | | | | | | ||profit | 1 141| 492| 131.9%| -426| | | 1 197| 4 966| -75.9%|+------------+-------+-------+--------+------+--------+-+------+------+--------+| Devices & | | | | | | | | | ||Services | 1 219| 766| 59.1%| 785| 55.3%| | 3 314| 5 816| -43.0%|+------------+-------+-------+--------+------+--------+-+------+------+--------+| NAVTEQ | -56| -73| | -68| | | -344| -153| |+------------+-------+-------+--------+------+--------+-+------+------+--------+| Nokia | | | | | | | | | ||Siemens | | | | | | | | | ||Networks | 17| -179| |-1 107| | |-1 639| -301| |+------------+-------+-------+--------+------+--------+-+------+------+--------++------------+-------+-------+--------+------+--------+-+------+------+--------+|Operating | | | | | | | | | ||margin | 9.5%| 3.9%| | -4.3%| | | 2.9%| 9.8%| |+------------+-------+-------+--------+------+--------+-+------+------+--------+| Devices & | | | | | | | | | ||Services | 14.9%| 9.4%| | 11.4%| | | 11.9%| 16.6%| |+------------+-------+-------+--------+------+--------+-+------+------+--------+| NAVTEQ | -24.9%| -35.6%| |-41.0%| | |-51.3%|-42.4%| |+------------+-------+-------+--------+------+--------+-+------+------+--------+| Nokia | | | | | | | | | ||Siemens | | | | | | | | | ||Networks | 0.5%| -4.1%| |-40.1%| | |-13.0%| -2.0%| |+------------+-------+-------+--------+------+--------+-+------+------+--------++------------+-------+-------+--------+------+--------+-+------+------+--------+|EPS, EUR | | | | | | | | | ||Diluted | 0.26| 0.15| 73.3%| -0.15| | | 0.24| 1.05| -77.1%|+------------+-------+-------+--------+------+--------+-+------+------+--------+Note 1 relating to non-IFRS results: Non-IFRS results exclude special items forall periods. In addition, non-IFRS results exclude intangible assetamortization, other purchase price accounting related items and inventory valueadjustments arising from i) the formation of Nokia Siemens Networks and ii) allbusiness acquisitions completed after June 30, 2008. More specific informationabout the exclusions from the non-IFRS results may be found in this pressrelease on pages 3-4, 12-14 and 16 for the quarterly periods and pages 25-29 forthe full year 2009 and 2008.Nokia believes that these non-IFRS financial measures provide meaningfulsupplemental information to both management and investors regarding Nokia'sperformance by excluding the above-described items that may not be indicative ofNokia's business operating results. These non-IFRS financial measures should notbe viewed in isolation or as substitutes to the equivalent IFRS measure(s), butshould be used in conjunction with the most directly comparable IFRS measure(s)in the reported results. A reconciliation of the non-IFRS results to ourreported results for Q4 2009 and Q4 2008 as well as for full year 2009 and 2008can be found in the tables on pages 10, 12-16 and 24-29 of this press release. Areconciliation of our Q3 2009 non-IFRS results can be found on pages 11 and14-18 of our Q3 2009 Interim Report of October 15, 2009.Note 2 relating to NAVTEQ:Nokia completed the acquisition of NAVTEQ Corporationon July 10, 2008. NAVTEQ is a separate reportable segment of Nokia starting fromthe third quarter 2008. The results of NAVTEQ are not available for the priorperiods. Accordingly, the results of Nokia Group and NAVTEQ for the full year2009 are not directly comparable to the results for the full year 2008.FOURTH QUARTER 2009 HIGHLIGHTS- Nokia net sales of EUR 12.0 billion, down 5% year on year and up 22%sequentially (down 4% and up 20% at constant currency).- Devices & Services net sales of EUR 8.2 billion, up 0.5% year on year and up18% sequentially (up 2% and 16% at constant currency).- Services net sales of EUR 169 million, up 15% sequentially; billings of EUR226 million, up 31% sequentially.- Estimated industry mobile device volumes of 329 million units, up 8% year onyear and up 14% sequentially.- Nokia mobile device volumes of 126.9 million units, up 12% year on year and up17% sequentially.- Nokia estimated mobile device market share of 39% in Q4 2009, up from anestimated 37% in Q4 2008 and 38% in Q3 2009. The full year 2009 estimated marketshare was 38%, down from 39% in 2008.- Nokia grew its converged device market share to an estimated 40%, from anestimated 35% in Q3 2009.- Nokia improved the ASP of its mobile devices to EUR 63, from EUR 62 in Q32009.- Devices & Services increased its gross margin to 34.3%, from 30.9% in Q3 2009.- NAVTEQ non-IFRS net sales of EUR 225 million, up 9% year on year and up 36%sequentially, and non-IFRS operating margin of 24.0%, down from 25.9% in Q32009.- Nokia Siemens Networks net sales of EUR 3.6 billion, down 16% year on year andup 31% sequentially (down 17% and up 29% at constant currency).- Nokia operating cash flow of EUR 1.5 billion, more than double the operatingcash flow for Q3 2009.- Total cash and other liquid assets of EUR 8.9 billion at the end of Q4 2009.- Nokia taxes were unfavorably impacted by Nokia Siemens Networks taxes as notax benefits are recognized for certain Nokia Siemens Networks deferred taxitems. If Nokia's estimated long-term tax rate of 26% had been applied, non-IFRSNokia EPS would have been approximately 1 Euro cent higher.OLLI-PEKKA KALLASVUO, NOKIA CEO:"We grew our market share in smartphones in the fourth quarter, driven by thesuccessful launch of new touch and QWERTY models. Our performance insmartphones, combined with continuing success in the emerging markets, helped usincrease sales in our Devices & Services unit, both quarter-on-quarter andyear-on-year. Our solid results also owe a good deal to world class supply chainmanagement and impressive sales execution.I was also pleased with Nokia Siemens Networks' performance in Q4, especiallyconsidering the ongoing challenging conditions in the infrastructure market.That performance enabled it to turn in a full year profit on an operative basis.Our focus remains firmly on execution, especially around user experience. Here Iwant to highlight our move to shake up the navigation market with free walk anddrive navigation on our smartphones, a good example of how we are leveraging ourassets to bring real benefits to consumers."INDUSTRY AND NOKIA OUTLOOK- Nokia expects Devices & Services net sales to be between EUR 6.5 billion andEUR 7.0 billion in the first quarter 2010.- Nokia expects its non-IFRS operating margin in Devices & Services in the firstquarter 2010 to be negatively impacted by seasonality and to be at the lower endof the range of its full year 2010 target, which continues to be 12% to 14%.- Nokia and Nokia Siemens Networks expect Nokia Siemens Networks' net sales tobe between EUR 2.6 billion and EUR 2.9 billion in the first quarter 2010.- Nokia and Nokia Siemens Networks expect the non-IFRS operating margin in NokiaSiemens Networks in the first quarter 2010 to be negatively impacted byseasonality and to be below the full year 2010 target, which continues to bebreakeven to 2%.- Nokia continues to expect industry mobile device volumes to be upapproximately 10% in 2010, compared to 2009.- Nokia continues to target its mobile device volume market share to be flat in2010, compared to 2009.- Nokia continues to target to increase its mobile device value market shareslightly in 2010, compared to 2009.- Nokia continues to target non-IFRS operating expenses in Devices & Services ofapproximately EUR 5.7 billion in 2010.- Nokia and Nokia Siemens Networks continue to expect a flat market in euroterms for the mobile and fixed infrastructure and related services market in2010, compared to 2009.- Nokia and Nokia Siemens Networks continue to target Nokia Siemens Networks togrow faster than the market in 2010.- Nokia and Nokia Siemens Networks continue to target Nokia Siemens Networks toreduce its non-IFRS annualized operating expenses and production overheads byEUR 500 million by the end of 2011, compared to the end of 2009.FOURTH QUARTER 2009 FINANCIAL HIGHLIGHTS(Comparisons are given to the fourth quarter 2008 results, unless otherwiseindicated.)The non-IFRS results exclusionsQ4 2009 - EUR 332 million (net) consisting of:- EUR 89 million restructuring charge and other one-time items in Nokia SiemensNetworks- EUR 22 million gain on sale of real estate in Nokia Siemens Networks- EUR 36 million restructuring charge in Devices & Services- EUR 117 million of intangible asset amortization and other purchase priceaccounting related items arising from the formation of Nokia Siemens Networks- EUR 110 million of intangible asset amortization and other purchase priceaccounting related items arising from the acquisition of NAVTEQ- EUR 2 million of intangible assets amortization and other purchase pricerelated items arising from the acquisition of OZ Communications in Devices &ServicesQ4 2009 taxes - EUR 213 million non-cash positive effect from development andoutcome of various prior year items impacting Nokia taxesQ3 2009 - EUR 1 167 million consisting of:- EUR 908 million impairment of goodwill in Nokia Siemens Networks- EUR 29 million restructuring charge and other one-time items in Nokia SiemensNetworks- EUR 117 million of intangible assets amortization and other purchase pricerelated items arising from the formation of Nokia Siemens Networks- EUR 111 million of intangible assets amortization and other purchase pricerelated items arising from the acquisition of NAVTEQ- EUR 2 million of intangible assets amortization and other purchase pricerelated items arising from the acquisition of OZ Communications in Devices &ServicesQ3 2009 taxes - EUR 432 million valuation allowance for Nokia Siemens Networksdeferred tax assets impacting Nokia taxesQ4 2008 - EUR 747 million consisting of:- EUR 286 million restructuring charge and other one-time items in Nokia SiemensNetworks- EUR 52 million restructuring charge in Devices & Services- EUR 165 million representing the contribution of assets to Symbian Foundation- EUR 5 million restructuring charge in NAVTEQ- EUR 118 million of intangible asset amortization and other purchase priceaccounting related items arising from the formation of Nokia Siemens Networks- EUR 121 million of intangible asset amortization and other purchase priceaccounting related items arising from the acquisition of NAVTEQNon-IFRS results exclude special items for all periods. In addition, non-IFRSresults exclude intangible asset amortization, other purchase price accountingrelated items and inventory value adjustments arising from i) the formation ofNokia Siemens Networks and ii) all business acquisitions completed after June30, 2008.Nokia GroupNokia's fourth quarter 2009 net sales decreased 5% to EUR 12.0 billion, comparedwith EUR 12.7 billion in the fourth quarter 2008. At constant currency, groupnet sales would have decreased 4% year on year.The following chart sets out the year on year and sequential growth rates in ournet sales on a reported basis and at constant currency for the periodsindicated.+------------------------------------------------------------------------------+|FOURTH QUARTER 2009 NET SALES, REPORTED & CONSTANT CURRENCY1 || |+--------------------------+-------------------------+-------------------------+| |Q4/2009 vs.Q4/2008 Change|Q4/2009 vs.Q3/2009 Change|+--------------------------+-------------------------+-------------------------+|Group net sales - reported| -5%| 22%|+--------------------------+-------------------------+-------------------------+|Group net sales - constant| | ||currency1 | -4%| 20%|+--------------------------+-------------------------+-------------------------++--------------------------+-------------------------+-------------------------+|Devices & Services net | | ||sales - reported | 0.5%| 18%|+--------------------------+-------------------------+-------------------------+|Devices & Services net | | ||sales - constant currency1| 2%| 16%|+--------------------------+-------------------------+-------------------------++--------------------------+-------------------------+-------------------------+|Nokia Siemens Networks net| | ||sales - reported | -16%| 31%|+--------------------------+-------------------------+-------------------------+|Nokia Siemens Networks net| | ||sales - constant currency1| -17%| 28%|+--------------------------+-------------------------+-------------------------++--------------------------+-------------------------+-------------------------+|Note 1: Change in net sales at constant currency excludes ||the impact of changes in exchange rates in comparison to the ||Euro, our reporting currency. |+------------------------------------------------------------------------------+Nokia's fourth quarter 2009 reported operating profit increased 132% to EUR 1.1billion, compared with EUR 492 million in the fourth quarter 2008. Nokia'sfourth quarter 2009 non-IFRS operating profit increased 19% to EUR 1.5 billion,compared with EUR 1.2 billion in the fourth quarter 2008. Nokia's fourth quarter2009 reported operating margin was 9.5% (3.9%). Nokia's fourth quarter 2009non-IFRS operating margin was 12.3% (9.8%).Operating cash flow for the fourth quarter 2009 was EUR 1.5 billion. Theoperating cash flow for the fourth quarter 2008 was negative EUR 0.3 billion.Operating cash flow in the fourth quarter 2008 included a one-time EUR 1.7billion lump-sum cash payment made to Qualcomm as part of a license agreement.Total cash and other liquid assets were EUR 8.9 billion at December 31, 2009,compared with EUR 6.8 billion at December 31, 2008. At December 31, 2009,Nokia's net debt-equity ratio (gearing) was -25%, compared with -14% at December31, 2008.Devices & ServicesIn the fourth quarter 2009, the total mobile device volumes of Devices &Services were 126.9 million units, representing an increase of 12% year on yearand 17% sequentially. The overall industry mobile device volumes for the sameperiod were 329 million units based on Nokia's estimate, representing anincrease of 8% year on year and 14% sequentially.Of the total industry mobile device volumes, converged mobile device industryvolumes in the fourth quarter 2009 increased to 52.4 million units, based onNokia's estimate, compared with an estimated 47.0 million units in the thirdquarter 2009. Our own converged mobile device volumes, comprising oursmartphones and mobile computers, were 20.8 million units in the fourth quarter2009, compared with 15.1 million units in the fourth quarter 2008 and 16.4million units in the third quarter 2009. Nokia's share of the converged mobiledevice market was an estimated 40% in the fourth quarter 2009, up from anestimated 35% in the third quarter 2009.We shipped approximately 4.6 million Nokia Nseries and approximately 6.1 millionNokia Eseries devices during the fourth quarter 2009, up from the combined 8.9million Nseries and Eseries devices we shipped in the third quarter 2009.The following chart sets out our mobile device volumes for the periodsindicated, as well as the year on year and sequential growth rates, bygeographic area.+-------------------------------------------------------+---------+------------+| NOKIA MOBILE DEVICE VOLUME BY GEOGRAPHIC AREA | | |+----------------------+---------+---------+------------+---------+------------+| (million units) | Q4/2009 | Q4/2008 | YoY Change | Q3/2009 | QoQ Change |+----------------------+---------+---------+------------+---------+------------+| Europe | 34.3 | 34.7 | -1.2% | 27.1 | 26.6% |+----------------------+---------+---------+------------+---------+------------+| Middle East & Africa | 24.3 | 18.2 | 33.5% | 19.6 | 24.0% |+----------------------+---------+---------+------------+---------+------------+| Greater China | 17.6 | 12.9 | 36.4% | 18.5 | -4.9% |+----------------------+---------+---------+------------+---------+------------+| Asia-Pacific | 34.5 | 29.9 | 15.4% | 30.5 | 13.1% |+----------------------+---------+---------+------------+---------+------------+| North America | 3.8 | 4.1 | -7.3% | 3.1 | 22.6% |+----------------------+---------+---------+------------+---------+------------+| Latin America | 12.4 | 13.3 | -6.8% | 9.7 | 27.8% |+----------------------+---------+---------+------------+---------+------------+| Total | 126.9 | 113.1 | 12.2% | 108.5 | 17.0% |+----------------------+---------+---------+------------+---------+------------+Based on our preliminary market estimate, Nokia's mobile device market share forthe fourth quarter 2009 was 39%, compared with 37% in the fourth quarter 2008and 38% in the third quarter 2009. Our year on year market share increase wasdriven by higher market share in all regions except North America, where ourmarket share was flat. Our sequential market share increase was driven primarilyby higher market share in Asia-Pacific, Middle East & Africa, Europe and NorthAmerica. Our market share was sequentially down in Greater China and LatinAmerica.Our mobile device average selling price (ASP) in the fourth quarter 2009 was EUR63, down from EUR 71 in the fourth quarter 2008 and up from EUR 62 in the thirdquarter 2009. The lower year on year ASP was primarily due to price erosion, ahigher proportion of lower-priced entry level device sales and to a lesserextent unfavorable changes in foreign exchange rates. On a sequential basis, ourASP benefited from more favorable foreign exchange hedging results and apositive mix shift towards converged mobile devices. Our mobile device ASP aboveexcludes net sales from services.Fourth quarter 2009 Devices & Services net sales increased 0.5% to EUR 8.2billion, compared with EUR 8.1 billion in the fourth quarter 2008. At constantcurrency, Devices & Services net sales would have increased 2%. Net sales grewyear on year in Greater China, Middle East & Africa and Asia-Pacific. Net saleswere down year on year in Europe, Latin America and North America. The slightnet sales increase resulted primarily from higher volumes in several regions,driven by stronger demand, largely offset, however, by an ASP decline comparedto the fourth quarter 2008. Of our total Devices & Services net sales, servicescontributed EUR 169 million in the fourth quarter 2009 and were up 15%sequentially. Services billings in the fourth quarter 2009 were EUR 226 million,up 31% sequentially.The following chart sets out our Devices & Services net sales and ASP for theperiods indicated by product category.+------------------------------------------------------------------------------+|DEVICES & SERVICES NET SALES AND ASP BY OPERATING MODE |+-------------------------+--------------------+---------------+---------------+| | Net sales, EUR | | || | billion | ASP, EUR | |+-------------------------+-------+------------+-------+-------+---------------+| |Q4/2009| Q3/2009|Q4/2009|Q3/2009| |+-------------------------+-------+------------+-------+-------+---------------+|Mobile phones1 | 4.3| 3.8| 40| 41| |+-------------------------+-------+------------+-------+-------+---------------+|Converged mobile devices2| 3.9| 3.1| 186| 190| |+-------------------------+-------+------------+-------+-------+---------------+|Total | 8.2| 6.9| | | |+-------------------------+-------+------------+-------+-------+---------------++-------------------------+-------+------------+-------+-------+---------------+|Note 1: Series 30 and Series 40-powered devices ranging from basic mobile ||phones focused on voice capability to devices with a number of additional ||functionalities, such as Internet connectivity, including the services and ||accessories sold with them. |+------------------------------------------------------------------------------+|Note 2: Smartphones and mobile computers, including the services and ||accessories sold with them. |+------------------------------------------------------------------------------+Devices & Services reported gross profit and non-IFRS gross profit increased 2%to EUR 2.81 billion, compared with EUR 2.75 billion in the fourth quarter 2008,with a reported gross margin and non-IFRS gross margin of 34.3% (33.8%). Theyear on year gross margin increase was primarily due to favorable developmentsin product material costs and royalty income as well as changes in product mixoffset to a large extent by unfavorable changes in foreign exchange rates.Devices & Services reported operating profit increased 59% to EUR 1.2 billion,compared with EUR 766 million in the fourth quarter 2008, with a reportedoperating margin of 14.9% (9.4%). Devices & Services non-IFRS operating profitincreased 28% to EUR 1.3 billion, compared with EUR 983 million in the fourthquarter 2008, with a non-IFRS operating margin of 15.4% (12.1%). The 28% year onyear increase in non-IFRS operating profit for the fourth quarter 2009 wasdriven primarily by lower operating and other expenses.NAVTEQFourth quarter 2009 NAVTEQ reported net sales increased 10% year on year to EUR225 million, compared with EUR 205 million in the fourth quarter 2008,benefiting from growth in mobile devices and improved conditions in theautomotive industry. In the fourth quarter 2009, NAVTEQ's reported gross profitincreased to EUR 195 million, compared with EUR 180 million in the fourthquarter 2008, with a gross margin of 86.7% (87.8%). Non-IFRS gross profit wasEUR 196 million (EUR 181 million), with a non-IFRS gross margin of 87.1%(87.9%). In the fourth quarter 2009, NAVTEQ's reported operating loss decreasedto EUR 56 million, compared with a EUR 73 million loss in the fourth quarter2008. The reported operating margin was -24.9% (-35.6%). NAVTEQ non-IFRSoperating profit was EUR 54 million (EUR 53 million), with a non-IFRS operatingmargin of 24.0% (25.7%).Nokia Siemens NetworksFourth quarter 2009 net sales decreased 16% to EUR 3.6 billion, compared withEUR 4.3 billion in the fourth quarter 2008, reflecting challenging competitivefactors and market conditions. At constant currency, Nokia Siemens Networks netsales would have decreased 17%. Of total Nokia Siemens Networks net sales,services contributed EUR 1.7 billion in the fourth quarter 2009.The following chart sets out Nokia Siemens Networks net sales for the periodsindicated, as well as the year on year and sequential growth rates, bygeographic area.+------------------------------------------------------------------------------+| NOKIA SIEMENS NETWORKS NET SALES BY GEOGRAPHIC AREA |+----------------------+---------+---------+------------+---------+------------+| EUR million | Q4/2009 | Q4/2008 | YoY Change | Q3/2009 | QoQ Change |+----------------------+---------+---------+------------+---------+------------+| Europe | 1 327 | 1 636 | -18.9% | 1 062 | 25.0% |+----------------------+---------+---------+------------+---------+------------+| Middle East & Africa | 371 | 615 | -39.7% | 387 | -4.1% |+----------------------+---------+---------+------------+---------+------------+| Greater China | 425 | 409 | 3.9% | 335 | 26.9% |+----------------------+---------+---------+------------+---------+------------+| Asia-Pacific | 818 | 967 | -15.4% | 567 | 44.3% |+----------------------+---------+---------+------------+---------+------------+| North America | 244 | 198 | 23.2% | 127 | 92.1% |+----------------------+---------+---------+------------+---------+------------+| Latin America | 440 | 513 | -14.2% | 282 | 56.0% |+----------------------+---------+---------+------------+---------+------------+| Total | 3 625 | 4 338 | -16.4% | 2 760 | 31.3% |+----------------------+---------+---------+------------+---------+------------+Nokia Siemens Networks reported gross profit decreased 5% to EUR 1.07 billion,compared with EUR 1.13 billion in the fourth quarter 2008, with a gross marginof 29.5% (26.1%). Nokia Siemens Networks non-IFRS gross profit decreased 16% toEUR 1.1 billion, compared with EUR 1.3 billion in the fourth quarter 2008, witha non-IFRS gross margin of 30.6% (30.4%). The lower year on year non-IFRS grossprofit in the fourth quarter 2009 was due primarily to lower year on year netsales.Nokia Siemens Networks fourth quarter 2009 reported operating profit was EUR 17million, compared with a reported operating loss of EUR 179 million in thefourth quarter 2008, with a reported operating margin of 0.5%(-4.1%). Nokia Siemens Networks non-IFRS operating profit decreased 11% to EUR201 million in the fourth quarter 2009, compared with EUR 225 million in thefourth quarter 2008, with a non-IFRS operating margin of 5.5% (5.2%). The yearon year decrease in Nokia Siemens Networks non-IFRS operating profit primarilyreflected lower net sales offset to a large extent by lower operating expenses.In November 2009, Nokia Siemens Networks announced a reorganization of itsbusiness structure to align it better to customer needs. At the same time, NokiaSiemens Networks announced a plan to improve its financial performance, whichinclude targeted reductions of annualized operating expenses and productionoverheads of EUR 500 million by the end of 2011, compared to the end of 2009, ona non-IFRS basis. As part of that effort, the company is conducting a globalpersonnel review which may lead to headcount reductions in the range of about7% to 9% of its approximately 64 000 employees. Nokia Siemens Networks estimatedthat total charges associated with these reductions will be in the range of EUR550 million to be recorded mainly over the course of 2010. No charges associatedwith these reductions were recorded for the fourth quarter 2009. In addition tothe operating expense and production overhead savings, Nokia Siemens Networksannounced that it will target an annual reduction in product and serviceprocurement costs related to cost of goods sold that is substantially largerthan the targeted EUR 500 million in operating expenses and production overheadreductions.Q4 2009 OPERATING HIGHLIGHTSDevices & Services- Nokia introduced the Nokia 1616, Nokia 1800, Nokia 2220 slide and Nokia 2690,all affordable mobile devices that support Nokia Life Tools, a service throughwhich consumers can access timely and relevant agricultural information, as wellas education and entertainment services, without requiring the use of GPRS orInternet connectivity. During the fourth quarter, Nokia launched Nokia LifeTools in Indonesia.- Nokia commenced shipments of the Nokia X6, a powerful touch smartphone with32 GB of on-board memory that comes in combination with Comes With Music,Nokia's 'all-you-can-eat' music offering.- Nokia continued to expand Comes With Music, with the offering launching inNetherlands, Finland, Spain and Russia. In Russia, Nokia also launched OviMusic, representing the first step of its plan to bring Nokia Music Store-our22-strong chain of digital music stores-into the Ovi stable of services.- Nokia commenced shipments of the Nokia N97 mini, a smaller companion to theNokia N97, featuring a tilting 3.2" touch display, QWERTY keyboard and fullycustomizable homescreen.- Nokia continued to develop Ovi Maps, its mapping and navigation service. InJanuary 2010, Nokia introduced a new version of Ovi Maps for its smartphonesthat includes high-end walk and drive navigation at no extra cost, available fordownload atwww.nokia.com/maps
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