Nokia's sales increased by 25 percent
Nokia’s sales growth was 25 percent during the quarter; Nokia expects the global mobile device market to expand to 2005 million by 760.
NOKIA Data for the second quarter of 2005 and the first half of 2005 | ||||||
million | 2005 second quarter* | 2004 second quarter, revised ** | Change (%) | 2005 first semester | 2004 first semester, modified ** | Change (%) |
| Net sales | 8 059 | 6 463 | 25 | 15455 | 12 811 | 21 |
| mobile phones | 4 864 | 4 050 | 20 | 9391 | 8 130 | 16 |
| Multimedia | 1 377 | 729 | 89 | 25101 | 1 473 | 70 |
| Enterprise Solutions | 198 | 185 | 7 | 505 | 369 | 37 |
| Networks | 1 620 | 1 530 | 6 | 3051 | 2 876 | 6 |
| Operating profit | 1 004 | 888 | 13 | 2122 | 1 907 | 11 |
| mobile phones | 789 | 802 | -2 | 1658 | 1 831 | -9 |
| Multimedia | 126 | -64 | 281 | -86 | ||
| Enterprise Solutions | -76 | -62 | -85 | -97 | ||
| Networks | 209 | 227 | -8 | 430 | 381 | 13 |
| Expenditure on joint groups | -44 | -15 | -162 | -122 | ||
| Operating margin (%) | 12.5 | 13.7 | 13.7 | 14.9 | ||
| Mobile Phones (%) | 16.2 | 19.8 | 17.7 | 22.5 | ||
| Multimedia (%) | 9.2 | -8.8 | 11.2 | -5.8 | ||
| Enterprise Solutions (%) (Enterprise Solutions) | -38.4 | -33.5 | -16.8 | -26.3 | ||
| Networks (%) (Networks) | 12.9 | 14.8 | 14.1 | 13.2 | ||
| Financial income and expenses | 103 | 135 | -24 | 181 | 211 | -14 |
| Profit before tax and minority shares | 1 108 | 1 017 | 9 | 2 300 | 2 108 | 9 |
| Net profit | 799 | 695 | 15 | 1662 | 1 424 | 17 |
| Earnings per share (EUR) | ||||||
| Yield | 0.18 | 0.15 | 20 | 0.37 | 0.31 | 19 |
| Modified yield | 0.18 | 0.15 | 20 | 0.37 | 0.31 | 19 |
* Special items for the second quarter of 2005
- Nokia's operating profit for the second quarter of 2005 includes a revenue of EUR 37 million from the sale of real estate and is included in other revenue of the joint ventures.
- Nokia's financial balance was positively impacted by revenues of EUR 17 million from the sale of the remaining stake in France Telecom.
- The positive impact of these items on earnings per share for the second quarter of 2005 is EUR 0.01.
Special items for the second quarter of 2004
- In the second quarter of 2004, the positive impact of special items on earnings per share was EUR 0.03.
** New International Accounting Standards (IFRS)
International Financial Reporting Standards (IFRS) were amended on 2005 January 1. Nokia's full quarterly financial data for the second quarter, first half of the year and 2004 reflect the retrospective implementation of IFRS 2 and IAS 39R.
Jorma Ollila, President and CEO of Nokia, said:
We are pleased with the strong 25% overall growth in sales during the quarter, year-over-year, and the even higher share of sales growth within the mobile device business. At the same time, Nokia’s stock return rose 20 percent year-over-year. The volume of mobile devices also grew by 34 percent year-on-year, resulting in an estimated 33 percent share of the mobile device market. This clearly shows that we have been able to make significant gains through high industry volumes in emerging markets as well as maintain our leading position in the high-end smartphone market.
