16th Jun 2010 13:00
Nokia / Miscellaneous 16.06.2010 14:00 Dissemination of a UK Regulatory Announcement, transmitted byDGAP - a company of EquityStory AG.The issuer is solely responsible for the content of this announcement.--------------------------------------------------------------------------- Nokia CorporationStock exchange releaseJune 16, 2010 at 15:00 (CET +1) Espoo, Finland - Nokia today commented on factors impacting its business andupdated its second quarter and full year 2010 outlook for Devices & Services.During the second quarter 2010, multiple factors are negatively impactingNokia's business to a greater extent than previously expected. These factorsinclude: the competitive environment, particularly at the high-end of themarket, and shifts in product mix towards somewhat lower gross margin products.In addition, the recent depreciation of the Euro affects Nokia's cost of goodssold, operating expenses and global pricing tactics. Updated outlook for Devices & Services for the second quarter 2010:- Nokia now expects Devices & Services net sales to be at the lower end of, orslightly below, its previously expected range of EUR 6.7 billion to EUR 7.2billion for the second quarter 2010. This update is primarily due to lower thanpreviously expected average selling prices and mobile device volumes. - Nokia now expects Devices & Services non-IFRS operating margin to be at thelower end of, or slightly below, its previously expected range of 9% to 12% forthe second quarter 2010. This update is primarily due to a lower thanpreviously expected gross margin. Updated outlook for Devices & Services and mobile device market for the fullyear 2010: - Nokia continues to expect industry mobile device volumes to be upapproximately 10% in 2010, compared to 2009 (based on its revised definition ofthe industry mobile device market applicable beginning in 2010). - Nokia continues to target its mobile device volume market share to be flat in2010, compared to 2009. - Nokia now expects its mobile device value market share to be slightly lowerin 2010, compared to 2009. This update is primarily due to the competitivesituation at the high-end of the market and shifts in product mix. This is anupdate to our previous target to increase our mobile device value market shareslightly in 2010, compared to 2009. - Nokia continues to target non-IFRS operating expenses in Devices & Servicesof approximately EUR 5.7 billion in 2010. - Nokia now expects Devices & Services non-IFRS operating margin to be at thelower end of, or below, its previously targeted range of 11% to 13% for thefull year 2010. This update is primarily due to the currently estimated grossmargin, which is lower than previously estimated. Nokia expects Devices &Services non-IFRS operating margin during the fourth quarter 2010 to be higherthan the currently expected full year Devices & Services non-IFRS operatingmargin. Nokia will provide its second quarter results and more details on its 2010 fullyear outlook when it reports its Q2 2010 results on July 22, 2010. Nokia will be hosting a conference call at 13:30 UK time (8:30 EST). Thedial-in number for media (listen only - the question and answer session will belimited to financial analysts and investors only) is +1 706 634 5012.Conference ID: 82113811. The dial-in number for financial analysts and investors is US: +1 888 636 1561.Conference ID: 82113811. UK: +44 1452 560 299. Conference ID: 82236648. A replay of the call will be available soon after the call completion. Thereplay number is US: +1 800 642 1687. Conference ID: 82113811. UK: +44 1452 550000. Conference ID: 82236648. About NokiaAt Nokia, we are committed to connecting people. We combine advanced technologywith personalized services that enable people to stay close to what matters tothem. Every day, more than 1.2 billion people connect to one another with aNokia device - from mobile phones to advanced smartphones and high-performancemobile computers. Today, Nokia is integrating its devices with innovativeservices through Ovi (www.ovi.com), including music, maps, apps, email andmore. Nokia's NAVTEQ is a leader in comprehensive digital mapping andnavigation services, while Nokia Siemens Networks provides equipment, servicesand solutions for communications networks globally. FORWARD-LOOKING STATEMENTS It should be noted that certain statements herein which are not historicalfacts are forward-looking statements, including, without limitation, thoseregarding: A) the timing of the deliveries of our products and services andtheir combinations; B) our ability to develop, implement and commercialize newtechnologies, products and services and their combinations; C) expectationsregarding market developments and structural changes; D) expectations andtargets regarding our industry volumes, market share, prices, net sales andmargins of products and services and their combinations; E) expectations andtargets regarding our operational priorities and results of operations; F) theoutcome of pending and threatened litigation; G) expectations regarding thesuccessful completion of acquisitions or restructurings on a timely basis andour ability to achieve the financial and operational targets set in connectionwith any such acquisition or restructuring; and H) statements preceded by'believe,' 'expect,' 'anticipate,' 'foresee,' 'target,' 'estimate,' 'designed,''plans,' 'will' or similar expressions. These statements are based onmanagement's best assumptions and beliefs in light of the information currentlyavailable to it. Because they involve risks and uncertainties, actual resultsmay differ materially from the results that we currently expect. Factors thatcould cause these differences include, but are not limited to: 1) thecompetitiveness and quality of our portfolio of products and services and theircombinations; 2) our ability to timely and successfully develop or otherwiseacquire the appropriate technologies and commercialize them as new advancedproducts and services and their combinations, including our ability to attractapplication developers and content providers to develop applications andprovide content for use in our devices; 3) our ability to effectively, timelyand profitably adapt our business and operations to the requirements of theconverged mobile device market and the services market; 4) the intensity ofcompetition in the various markets where we do business and our ability tomaintain or improve our market position or respond successfully to changes inthe competitive environment; 5) the occurrence of any actual or even allegeddefects or other quality, safety or security issues in our products andservices and their combinations; 6) the development of the mobile and fixedcommunications industry and general economic conditions globally andregionally; 7) our ability to successfully manage costs; 8) exchange ratefluctuations, including, in particular, fluctuations between the euro, which isour reporting currency, and the US dollar, the Japanese yen and the Chineseyuan, as well as certain other currencies; 9) the success, financial conditionand performance of our suppliers, collaboration partners and customers; 10) ourability to source sufficient amounts of fully functional components,sub-assemblies, software, applications and content without interruption and atacceptable prices and quality; 11) our success in collaboration arrangementswith third parties relating to the development of new technologies, productsand services, including applications and content; 12) our ability to manageefficiently our manufacturing and logistics, as well as to ensure the quality,safety, security and timely delivery of our products and services and theircombinations; 13) our ability to manage our inventory and timely adapt oursupply to meet changing demands for our products; 14) our ability to protectthe complex technologies, which we or others develop or that we license, fromclaims that we have infringed third parties' intellectual property rights, aswell as our unrestricted use on commercially acceptable terms of certaintechnologies in our products and services and their combinations; 15) ourability to protect numerous Nokia, NAVTEQ and Nokia Siemens Networks patented,standardized or proprietary technologies from third-party infringement oractions to invalidate the intellectual property rights of these technologies;16) the impact of changes in government policies, trade policies, laws orregulations and economic or political turmoil in countries where our assets arelocated and we do business; 17) any disruption to information technologysystems and networks that our operations rely on; 18) our ability to retain,motivate, develop and recruit appropriately skilled employees; 19) unfavorableoutcome of litigations; 20) allegations of possible health risks fromelectromagnetic fields generated by base stations and mobile devices andlawsuits related to them, regardless of merit; 21) our ability to achievetargeted costs reductions and increase profitability in Nokia Siemens Networksand to effectively and timely execute related restructuring measures; 22)developments under large, multi-year contracts or in relation to majorcustomers in the networks infrastructure and related services business; 23) themanagement of our customer financing exposure, particularly in the networksinfrastructure and related services business; 24) whether ongoing or anyadditional governmental investigations into alleged violations of law by someformer employees of Siemens AG ('Siemens') may involve and affect thecarrier-related assets and employees transferred by Siemens to Nokia SiemensNetworks; 25) any impairment of Nokia Siemens Networks customer relationshipsresulting from ongoing or any additional governmental investigations involvingthe Siemens carrier-related operations transferred to Nokia Siemens Networks;as well as the risk factors specified on pages 11-32 of Nokia's annual reportForm 20-F for the year ended December 31, 2009 under Item 3D. 'Risk Factors.'Other unknown or unpredictable factors or underlying assumptions subsequentlyproving to be incorrect could cause actual results to differ materially fromthose in the forward-looking statements. Nokia does not undertake anyobligation to publicly update or revise forward-looking statements, whether asa result of new information, future events or otherwise, except to the extentlegally required. Nokia, Helsinki - June 16, 2010 Media and Investor Enquiries: NokiaCommunicationsTel. +358 7180 34900Email: [email protected] Investor Relations EuropeTel. +358 7180 34927Investor Relations USTel. +1 914 368 0555 www.nokia.com News Source: NASDAQ OMX 16.06.2010 DGAP's Distribution Services include Regulatory Announcements,Financial/Corporate News and Press Releases.Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: EnglishCompany: Nokia FinlandPhone: Fax: E-mail: Internet: ISIN: FI0009000681Category Code: MSCLSE Ticker: 0HAFSequence Number: 505Time of Receipt: Jun 16, 2010 14:00:07 End of Announcement DGAP News-Service ---------------------------------------------------------------------------UK-Regulatory-announcement transmitted by DGAP - a company of EquityStory AG.The issuer is solely responsible for the content of this announcement.
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