Nokia Posts Strong Q1 Profit, Revenue Growth

STOCKHOLM (04/27/2000) - Mobile phone supplier Nokia Corp. reported today 71 percent and 76 percent increases in operating and net profit, respectively, for its first fiscal 2000 quarter, on top of a 69 percent revenue jump.

Buoyed by strong sales of its flagship mobile phone handsets, operating profit for the quarter ended March 31 reached 1.32 billion euros (US$1.21 billion), as compared to 768 million euros for the same period a year ago, Nokia said in a statement. Operating profit from mobile phone sales jumped 88 percent to 1.16 billion euros, from 616 million euros last year, representing an operating margin of 24 percent, Nokia said.

Net income, meanwhile, rose to 891 million euros, or 0.19 euros per diluted share, from 505 million and 0.11 euros, respectively, in the first quarter of 1999.

Sales were strong in all regions, Nokia said, with revenue during the first quarter growing to 6.54 billion euros, from 3.87 billion euros last year.

Based on current market conditions and Nokia's strong position globally, the company expects full-year revenue growth at least in the previously stated range of 30 percent to 40 percent, combined with strong profitability, Nokia Chairman and Chief Executive Officer Jorma Ollila said in the statement.

Investors seemed impressed by the first-quarter results and bullish forecast.

In midday trading on the Helsinki Stock Exchange, following the release of the report, Nokia shares were trading at 60 euros, up 7.8 percent on the day.

Nokia, in Espoo, Finland, can be reached at +358-9-5113-8193, or on the Web at http://www.nokia.com/.

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