• Nokia net sales of EUR 12.7 billion, down 19% year on year and up 3% sequentially (down 18% and up 1% at constant currency).
• Devices & Services net sales of EUR 8.1 billion, down 27% year on year and down 5% sequentially (down 25% and 8% at constant currency).
• Services and software net sales of EUR 158 million, up 37% sequentially.
• Estimated industry mobile device volumes of 305 million units, down 9% year on year and down 2% sequentially.
• Nokia mobile device volumes of 113.1 million units, down 15% year on year and down 4% sequentially.
• Nokia estimated mobile device market share of 37% in Q4 2008, down from 40% in Q4 2007 and down from 38% in Q3 2008. The full year 2008 estimated market share was 39%.
• Nokia mobile device ASP of EUR 71, down from EUR 72 in Q3 2008.
• Devices & Services gross margin of 33.8%, down from 36.5% in Q3 2008.
• NAVTEQ net sales of EUR 205 million, up 31% sequentially from EUR 156 million, and non-IFRS operating margin of 25.7% (18.5% in Q3 2008)
• Nokia Siemens Networks net sales of EUR 4.3 billion, down 5% year on year and up 24% sequentially (down 4% and up 23% at constant currency).
• Nokia Siemens Networks achieved substantially all of the EUR 2.0 billion of targeted annual cost synergies by the end of 2008.
• Operating cash flow was negative EUR 0.3 billion, including the one-time EUR 1.7 billion lump-sum cash payment made to Qualcomm as part of the previously announced license agreement. Excluding the Qualcomm payment, operating cash flow was EUR 1.4 billion.
• Total cash and other liquid assets of EUR 6.8 billion at the end of Q4 2008.
Smartphones: Of the total industry mobile device volumes, converged mobile device industry volumes in 2008 increased to 161 million units, based on Nokia’s estimate, compared with an estimated 117 million units in 2007. Our own converged mobile device volumes were 60.6 million units in 2008, compared with 60.5 million units in 2007. Nokia shipped over 36 million Nokia Nseries and approximately 10 million Nokia Eseries devices in 2008.
Nokia Board of Directors will propose a dividend of EUR 0.40 per share for 2008 (EUR 0.53 per share for 2007). ###
• Nokia Q4 underlying EPS 0.26 euros, vs 0.30 consensus
• Sees cellphone market volume down 10 pct in 2009
• To cut 700 mln euros of costs in devices unit
• Shares reverse earlier gains, down 6.9 pct
Top cellphone maker Nokia (NOK1V.HE) reported a worse-than-expected dive in fourth-quarter profit, and warned market volumes would shrink 10 percent this year as the economic slowdown hits consumer spending.
Analysts have forecast an 8 percent fall in the handset market in 2009, and only last month Nokia's own view was that it would dip 5 percent.
"It is interesting that they lower guidance for 2009 already from their assessment in December. It shows how fast things have worsened in the past month," said Johan Strandberg at SEB Asset Management.
"That's what's driving the stock," said Richard Windsor, technology specialist at Nomura Securities, after Nokia shares reversed their gains of 4 percent to stand 6.9 percent down on the day at 9.52 euros after the results were released.
Nokia's said its underlying fourth-quarter earnings per share were 0.26 euros, missing the average forecast of 0.30 euros in a Reuters poll, but within the wide range of estimates.
Nokia said it aimed to cut annual costs at its key handset unit by 700 million euros ($909 million).
"We are taking action to reduce overall costs and to preserve our strong capital structure. This is clearly our top priority in the current economic environment," Chief Executive Olli-Pekka Kallasvuo said in a statement.
Nokia's figures confirmed that cellphone sales contracted last quarter for the first time in more than six years.
"In recent weeks, the macroeconomic environment has deteriorated rapidly, with even weaker consumer confidence, unprecedented currency volatility and credit tightness continuing to impact the mobile communications industry," Kallasvuo said. ###
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