Finnish telecommunications equipment giant, Nokia Oy, has continued its irresistible rise with record revenues and profits in 1997. Net profits for the year to December 31 were up 92% at the equivalent of $1.13bn with revenue up 34% at $9.53bn. Operating profit margins improved by three points to 13.9% and the board has rewarded shareholders with a doubling of the final dividend, helping the shares rise 8.5% to nearly $90. A brief mention was given to the slow down in Asian markets, but it was not material against a backdrop of strong growth in other areas, particularly China, the company said. Nokia insisted that it would continue investing in Southeast Asia even though the impact of recent problems in the region was hard to gauge. It feels that the region still has a vital role to play in global telecommunications market. Nokia’s fixed telecommunications infrastructure business was outstanding in the group’s fourth quarter, with large contract wins which included an agreement with Telecom Finland for the modernization of its complete array of switching technology. Nokia now rates as the ninth biggest telecoms equipment manufacturer in the world in terms of revenues, and second in the world for GSM mobile networks. The board has proposed a final dividend up 114% at the equivalent of $1.36 per share, and a two for one stock split is to be proposed at the company’s annual general meeting in March.
