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Best year ever for Nokia
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January 29, 1999: 8:33 a.m. ET
Finnish mobile phone maker posts record '98 earnings, says it's world's biggest
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LONDON (CNNfn) - Despite announcing record earnings for 1998 and a 72 percent rise in fourth quarter profits, shares in Nokia, the Finnish mobile phone manufacturer, fell in Helsinki Friday on grumbles the results could have been even better.
Profits from continuing operations for the fourth quarter rose to 3.4 billion markka ($650 million), up from 2 billion in the same period a year ago.
For all of 1998, profits rose to 9.9 billion markka ($1.9 billion), up 66 percent from 1997.
Susan Anthony of Credit Lyonnais Securities in London said the fall in the stock was simply a result of it rising beyond any sustainable level. "The shares have just run away from themselves, so some falls are to be expected," she said.
Anthony said profits did not quite reach the highest forecasts, but that the overall quality of the earnings was exceptionally high. "These are a very good set of figures," she said. "The mobile business is going incredibly well and Nokia is proving it can retain margins of 19 percent on that business, which some feared would be impossible."
Nokia also announced a 2-for-1 stock split. Chief executive Jorma Ollila said the company believes it is now the world's largest mobile phone manufacturer. It is a claim which is likely to be fiercely disputed by Ericsson.
Nokia President and CEO Jorma Ollila reiterated previously stated sales growth targets for 1999 of 25-35 percent.
Sales grew 51 percent last year to 79.23 billion markka ($15.2 billion). For the fourth quarter they rose 63 percent.
Nokia shares were down 3.7 euros to 123.8 by midday in Helsinki, although off their lows of 120.
However, the shares briefly touched a new record high of 133.9 just after the open. The shares have more than quadrupled from just below 30 euros a year ago.
Anthony said the figures compare well with earnings reported Thursday by the company's fiercest rival, Ericsson of Sweden. Ericsson could only lift 1998 profits to19 billion crowns ($2.5 billion) from 18.8 billion crowns in 1997, and it warned that profits for the first half of this year would be lower than previously expected. 
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Nokia
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