31st May 2011 13:00
Nokia / Miscellaneous 31.05.2011 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.--------------------------------------------------------------------------- Published May 31, 2011Nokia CorporationStock exchange releaseMay 31, 2011 at 15:00 (CET +1) Espoo, Finland - Nokia today commented on factors impacting its business andupdated its second quarter and full year 2011 outlook for Devices & Services.During the second quarter 2011, multiple factors are negatively impactingNokia's Devices & Services business to a greater extent than previouslyexpected. These factors include: - the competitive dynamics and market trends across multiple price categories,particularly in China and Europe; - a product mix shift towards devices with lower average selling prices andlower gross margins; and - pricing tactics by Nokia and certain competitors. Updated outlook for Devices & Services for the second quarter 2011:- Nokia now expects Devices & Services net sales to be substantially below itspreviously expected range of EUR 6.1 billion to EUR 6.6 billion for the secondquarter 2011. This update is primarily due to lower than previously expectedaverage selling prices and mobile device volumes. - Nokia now expects Devices & Services non-IFRS operating margin to besubstantially below its previously expected range of 6% to 9% for the secondquarter 2011. This update is primarily due to lower than previously expectednet sales. While visibility is very limited, Nokia's current view is thatsecond quarter 2011 Devices & Services non-IFRS operating margin could bearound breakeven. Updated outlook for Devices & Services for the full year 2011:- Given the unexpected change in our outlook for the second quarter, Nokiabelieves it is no longer appropriate to provide annual targets for 2011.However, Nokia expects to continue to provide short-term quarterly forecasts inits interim reports as well as annual targets when circumstances allow it to doso. - Nokia's previous targets for the third quarter, fourth quarter, and full year2011 were: 1) Net sales in Devices & Services to be at approximately the samelevel in the third quarter 2011 as in the second quarter 2011, and seasonallyhigher in the fourth quarter 2011, compared to the third quarter 2011; 2)Devices & Services non-IFRS operating margin to be between 6% and 9% in 2011.These targets are no longer valid. Nokia is taking immediate action to address the issues that are impacting itsDevices & Services business. Nokia's high-level strategic objectives andtargets remain unchanged. - Nokia is continuing to invest to bring new innovative capabilities to itsSymbian line up. In addition, Nokia has taken price actions on its currentsmartphone portfolio, and Nokia is intensifying its focus on retailpoint-of-sales marketing. - Nokia started shipping its new dual-SIM devices last week.- Nokia remains pleased with its progress on its Windows Phone strategy, andhas increased confidence that the first Nokia product with Windows Phone willship in the fourth quarter 2011. - Nokia remains committed to its target to reduce its Devices & Servicesnon-IFRS operating expenses by EUR 1 billion for the full year 2013, comparedto the full year 2010, and plans to implement these reductions as quickly andeffectively as possible. - After the transition, Nokia continues to target Devices & Services net salesto grow faster than the market and Devices & Services non-IFRS operating marginto be 10% or more. 'Strategy transitions are difficult. We recognize the need to deliver greatmobile products, and therefore we must accelerate the pace of our transition,'said Stephen Elop, president and CEO of Nokia. 'Our teams are aligned, and wehave increased confidence that we will ship our first Nokia product withWindows Phone in the fourth quarter 2011.' Nokia will provide its second quarter results and more details when it reportsits Q2 2011 results on July 21, 2011. 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: 72156605. The dial-in number for financial analysts and investors is US: +1 888 636 1561.Conference ID: 72156605. UK: +44 1452 560 299. Conference ID: 72175614. A replay of the call will be available soon after the call completion. Thereplay number is US: +1 800 642 1687. Conference ID: 72156605. UK: +44 1452 550000. Conference ID: 72175614. About NokiaNokia is committed to connecting people to what matters to them by combiningadvanced mobile technology with personalized services. More than 1.3 billionpeople connect to one another with a Nokia, from our most affordablevoice-optimized mobile phones to advanced Internet-connected smartphones soldin virtually every market in the world. Through Ovi (www.ovi.com), people alsoenjoy access to maps and navigation on mobile, a rapidly expanding applicationsstore, a growing catalog of digital music, free email and more. Nokia's NAVTEQis a leader in comprehensive digital mapping and navigation services, and NokiaSiemens Networks is one of the leading providers of telecommunicationsinfrastructure hardware, software and professional services globally. FORWARD-LOOKING STATEMENTSIt should be noted that certain statements herein which are not historicalfacts are forward-looking statements, including, without limitation, thoseregarding: A) the expected plans and benefits of our strategic partnership withMicrosoft to combine complementary assets and expertise to form a global mobileecosystem and to adopt Windows Phone as our primary smartphone platform; B) thetiming and expected benefits of our new strategy, including expectedoperational and financial benefits and targets as well as changes in leadershipand operational structure; C) the timing of the deliveries of our products andservices; D) our ability to innovate, develop, execute and commercialize newtechnologies, products and services; E) expectations regarding marketdevelopments and structural changes; F) expectations and targets regarding ourindustry volumes, market share, prices, net sales and margins of products andservices; G) expectations and targets regarding our operational priorities andresults of operations; H) expectations and targets regarding collaboration andpartnering arrangements; I) the outcome of pending and threatened litigation;J) expectations regarding the successful completion of acquisitions orrestructurings on a timely basis and our ability to achieve the financial andoperational targets set in connection with any such acquisition orrestructuring; and K) statements preceded by 'believe,' 'expect,' 'anticipate,''foresee,' 'target,' 'estimate,' 'designed,' 'plans,' 'will' or similarexpressions. These statements are based on management's best assumptions andbeliefs in light of the information currently available to it. Because theyinvolve risks and uncertainties, actual results may differ materially from theresults that we currently expect. Factors that could cause these differencesinclude, but are not limited to: 1) our ability to succeed in creating acompetitive smartphone platform for high-quality differentiated winningsmartphones or in creating new sources of revenue through our partnership withMicrosoft; 2) the expected timing of the planned transition to Windows Phone asour primary smartphone platform and the introduction of mobile products basedon that platform; 3) our ability to maintain the viability of our currentSymbian smartphone platform during the transition to Windows Phone as ourprimary smartphone platform; 4) our ability to realize a return on ourinvestment in MeeGo and next generation devices, platforms and userexperiences; 5) our ability to build a competitive and profitable globalecosystem of sufficient scale, attractiveness and value to all participants andto bring winning smartphones to the market in a timely manner; 6) our abilityto produce mobile phones in a timely and cost efficient manner withdifferentiated hardware, localized services and applications; 7) our ability toincrease our speed of innovation, product development and execution to bringnew competitive smartphones and mobile phones to the market in a timely manner;8) our ability to retain, motivate, develop and recruit appropriately skilledemployees; 9) our ability to implement our strategies, particularly our newmobile product strategy; 10) the intensity of competition in the variousmarkets where we do business and our ability to maintain or improve our marketposition or respond successfully to changes in the competitive environment; 11)our ability to maintain and leverage our traditional strengths in the mobileproduct market if we are unable to retain the loyalty of our mobile operatorand distributor customers and consumers as a result of the implementation ofour new strategy or other factors; 12) our success in collaboration andpartnering arrangements with third parties, including Microsoft; 13) thesuccess, financial condition and performance of our suppliers, collaborationpartners and customers; 14) our ability to source sufficient quantities offully functional quality components, subassemblies and software on a timelybasis without interruption and on favorable terms, including the disruption ofproduction and/or deliveries from any of our suppliers as a result of adverseconditions in the geographic areas where they are located; 15) our ability tomanage efficiently our manufacturing, service creation, delivery and logisticswithout interruption; 16) our ability to ensure the timely delivery ofsufficient volumes of products that meet our and our customers' and consumers'requirements and manage our inventory and timely adapt our supply to meetchanging demands for our products; 17) any actual or even alleged defects orother quality, safety and security issues in our products; 18) any actual oralleged loss, improper disclosure or leakage of any personal or consumer datacollected or made available to us or stored in or through our products; 19) ourability to successfully manage costs, including our ability to achieve targetedcosts reductions and to effectively and timely execute related restructuringmeasures, including personnel reductions; 20) our ability to effectively andsmoothly implement the new operational structure for our devices and servicesbusiness effective April 1, 2011; 21) the development of the mobile and fixedcommunications industry and general economic conditions globally andregionally; 22) exchange rate fluctuations, including, in particular,fluctuations between the euro, which is our reporting currency, and the USdollar, the Japanese yen and the Chinese yuan, as well as certain othercurrencies; 23) our ability to protect the technologies, which we or othersdevelop or that we license, from claims that we have infringed third parties'intellectual property rights, as well as our unrestricted use on commerciallyacceptable terms of certain technologies in our products and services; 24) 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;25) 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; 26) any disruption to information technologysystems and networks that our operations rely on; 27) unfavorable outcome oflitigations; 28) allegations of possible health risks from electromagneticfields generated by base stations and mobile products and lawsuits related tothem, regardless of merit; 29) our ability to achieve targeted costs reductionsand increase profitability in Nokia Siemens Networks and to effectively andtimely execute related restructuring measures; 30) Nokia Siemens Networks'ability to maintain or improve its market position or respond successfully tochanges in the competitive environment; 31) Nokia Siemens Networks' liquidityand its ability to meet its working capital requirements; 32) whether NokiaSiemens Networks is able to successfully integrate the acquired assets ofMotorola Solutions 's networks business, retain existing customers of theacquired business, cross-sell Nokia Siemens Networks' products and services tocustomers of the acquired business and otherwise realize the expected synergiesand benefits of the acquisition; 33) Nokia Siemens Networks' ability to timelyintroduce new products, services, upgrades and technologies; 34) Nokia SiemensNetworks' success in the telecommunications infrastructure services market andNokia Siemens Networks' ability to effectively and profitably adapt itsbusiness and operations in a timely manner to the increasingly diverse serviceneeds of its customers; 35) developments under large, multi-year contracts orin relation to major customers in the networks infrastructure and relatedservices business; 36) the management of our customer financing exposure,particularly in the networks infrastructure and related services business; 37)whether ongoing or any additional governmental investigations into allegedviolations of law by some former employees of Siemens AG may involve and affectthe carrier-related assets and employees transferred by Siemens AG to NokiaSiemens Networks; 38) any impairment of Nokia Siemens Networks customerrelationships resulting from ongoing or any additional governmentalinvestigations involving the Siemens carrier-related operations transferred toNokia Siemens Networks; as well as the risk factors specified on pages 12-39 ofNokia's annual report Form 20-F for the year ended December 31, 2010 under Item3D. 'Risk Factors.' Other unknown or unpredictable factors or underlyingassumptions subsequently proving to be incorrect could cause actual results todiffer materially from those in the forward-looking statements. Nokia does notundertake any obligation to publicly update or revise forward-lookingstatements, whether as a result of new information, future events or otherwise,except to the extent legally required. Media and Investor Enquiries: NokiaCommunicationsTel. +358 7180 34900Email: [email protected] Investor Relations EuropeTel. +358 7180 34927 Investor Relations USTel. +1 914 368 0555 www.nokia.comNews Source: NASDAQ OMX 31.05.2011 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: 821Time of Receipt: May 31, 2011 14:00:05 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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