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News > International
Nokia sees 3Q sales miss
September 11, 2001: 9:06 a.m. ET

But biggest cell phone maker says profit will match its earlier targets
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NEW YORK (CNNfn) - Nokia warned Tuesday its third-quarter sales will fall as cell phone operators delay rolling out new networks, but the biggest wireless phone maker also said earnings will match its earlier forecasts.

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The Finnish company said sales in the July-September period are expected to be about 5 percent lower than a year ago, compared with earlier forecasts for sales to be flat or up slightly.

"On the infrastructure side, the ongoing technology transition from mobile voice to mobile data together with economic instability have increased uncertainty, as some operators are reassessing the timing of their GSM network investments," Nokia said.

GSM (Global system for mobile commutations) is a standard for digital wireless telephone networks.

But the Helsinki-based company also said it expects to meet its earnings-per-share guidance for the quarter when it reports earnings Oct. 19. Diluted earnings per share are expected to meet forecasts of 0.14 euro to 0.16 euro (about 12.6 cents to 14.4 cents).

Sales at its mobile-phones unit are forecast to be about the same level as in the third quarter of 2000, the company said.

"Demand is showing signs of picking  up in the U.S. and the Asian market continues to show a solid performance," Nokia said. "Nokia continues to maintain market leadership without compromising profitability even in today's turbulent market conditions."

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Nokia shares had fallen some 40 percent from the end of July as market worries mounted that the firm would not be able to balance weak market conditions on the one hand and a desire to maintain its traditionally high margins on the other.

Analysts have said even if Nokia meets its third-quarter guidance, a concern remains whether the fourth quarter will be as strong as it traditionally has been, given faltering demand as the global economy cools.

Nokia and other wireless companies have suffered from a year-long slowdown in the U.S. and global economies driven primarily by a dramatic reduction in capital spending.  

Motorola Inc. (MOT: Research, Estimates) last week warned of flat sales and a wider-than-expected loss in the third quarter and said it will cut 2,000 more jobs, bringing its total layoffs this year to 32,000. Ericsson (ERICY: Research, Estimates), the world's biggest wireless network supplier, said last month it didn't expect the telecom market to improve any time soon.

Nokia (NOK: Research, Estimates) American depositary shares (ADSs) jumped $1.55 to $15.30 in before-hours trading after the news. They closed Monday up 48 cents at $13.75. graphic


- from staff and wire reports

  RELATED STORIES

Motorola warns on 3Q EPS, sales, cuts more jobs - Sept. 6, 2001

Ericsson sees no improvement in the telecom market - Aug. 30, 2001

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.