Based on the first two months of 2001, Nokia estimates that it is likely to reach an EPS of, in line with its earlier statements. Also for the first quarter, the company expects year-on-year sales growth in Nokia Networks to be 30-35% and in Nokia Mobile Phones 15-20%. This would lead to a total sales growth of about 20%, compared to our earlier estimate of 25-30%. All of these estimates are subject to market developments in the final weeks of the quarter.
The company did also admitted there would be slower than expected sales growth in the first quarter mainly due to the stronger than anticipated impact of demanding market conditions.
This news follows the disastrous sales warnings announced by Ericsson and Motorola earlier this week. The stock market reacted positively to the announcement and the company’s shares rose to E26.55, up almost 10%.
