Nokia refuses to panic despite worse than expected Q4
Published: 23 January, 2009
Continued ...
Average selling prices, another vital metric, slipped from €72 to €71, not disastrous, although also below analyst hopes of a rise to €74 following the launch of some high end models in the fourth quarter. Gross margins were down to 33.8% from 36.5% in Q3, in line with forecasts, and operating profit in handsets fell 70% to €766m. Any further erosion of Nokia's enviable and closely guarded gross margin of 30-40% across its whole range would have been a key negative signal to the market.
Nokia Siemens Networks, the joint venture whose results are reported as part of Nokia's, saw net sales of €4.3bn ($5.6bn), down 5% year-on-year but up 24% sequentially (down 4% and up 23% at constant currency). Predictions for cross-industry decline of 5% this year were maintained.
A rally in European stocks was reversed by Nokia's news, with the pan-European FTSE300 index losing half its value. "Nokia's numbers have ruined the party and pulled down the stock market," a trader told Reuters.
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