Nokia Corp., the world's largest supplier of mobile phones, warned Tuesday that although it expects to meet its third-quarter profit estimates, it will delay the rollout of new networks and expects sales of its mobile phones to slow down.
The statement was issued before the terrorist attacks in the U.S. on Tuesday and it is unclear if the unfolding events will have a further effect on sales, profits or the building of new networks. Officials from Nokia could not immediately be reached for comment.
Nokia expects revenue for its third quarter, ending Sept. 30, to be 5 percent lower than the same quarter last year, when the company reported a net profit of 892 million euros (US$784.6 million, as of Sept. 30, 2000, the last day of its third quarter ), or 19 euro cents per diluted share, the company said in a statement. In July, when the Finland-based company posted its second-quarter results -- its first decline in five years -- Nokia forecasted year-on-year growth of between zero and 5 percent. At the time Nokia also added that it was not giving guidance for the fourth quarter, due to the "lack of visibility." Nokia is reassessing the rollout of its new networks, including its GSM (Global System for Mobile Communications) technologies due to a decrease in market-wide capital investments in the networks, the company said.
Last month, the company announced it had successfully completed its first 3G (third-generation) W-CDMA (Wideband Code Division Multiple Access) voice call over a commercial 3GPP (Third Generation Partnership Project), testing its first commercial 3G terminal in both of its modes, W-CDMA and GSM. "On the infrastructure side, the ongoing technology transition from mobile voice to mobile data, together with economic instability have increased uncertainty, as some operators are reassessing the timing of their GSM network investments," said Olli-Pekka Kallasvuo, Nokia's executive vice president and chief financial officer (CFO) in a recorded conference call Tuesday.
Nokia gave no revised timelines for the deployment of any new technologies or networks.
Demand for mobile technology was "showing signs of picking up in the U.S.," while the performance in the Asian markets was still solid, Nokia said.
Nokia expects to meet its third-quarter earnings-per-share forecasts of 0.14 euros to 0.16 euros per share, the company said.
Shares of Nokia (NOA3.FRA) traded on the Frankfurt Stock Exchange where higher in late morning trading on Thursday, up 8.11 percent, or 1.29 euros to trade at 17.2 euros per share. The company has experienced a 52-week low of 13.55 euros per share and a 52-week high of 59.9 euros per share.
Nokia (NYSE:NOK) is also traded on the New York Stock Exchange (NYSE) which has been closed since the terrorist attacks and is not expected to reopen for trading until Friday or early next week. On Monday, Nokia's stock on the NYSE closed at US$13.75 per share, an increase of $0.48 per share. The company has experienced a 52-week low of $12.7 per share and a 52-week high of $53.75 per share.
Nokia will release its third-quarter earnings report on Oct. 19 and will issue a mid-quarter update for the fourth quarter on Dec. 11, the company said.