ESPOO, Finland-Nokia Corp. reported its strongest annual operating results in the company’s history for the 1999 fourth quarter and year.
Net sales grew 48 percent for the year from $13.4 billion in 1998 to $19.9 billion in 1999. Fourth-quarter sales also increased from $4.4 billion in 1998 to $6.4 billion in 1999.
Net profits gained 47 percent for the year, rising from $1.8 billion in 1998 to $2.6 billion in 1999, with earnings per share jumping from 48 cents per share to 81 cents per share.
Fourth-quarter profits increased to $860 million in 1999 from $590 million in 1998 with fourth-quarter earnings per share rising from 51 cents to 75 cents per share.
“Within that healthy market, we see Nokia-the market leader-gaining further market share on the back of well-received new model introductions and a leading ability to ramp-up these new models in volume,” commented Marc Cabi, managing director of Equity Research for Credit Suisse First Boston.
Nokia’s board also announced it will submit a proposal at the company’s annual meeting for a four-for-one share split. As of midday Tuesday, Nokia stock was trading at $185.75 per share, up $2.25 from the day’s opening.
In related news, ARC Group said Nokia increased its lead in the mobile handset market in 1999, with 26.6 percent of the total 253 million handsets sold worldwide. Motorola Inc. was second in sales at 17.4 percent, and L.M. Ericsson was third with 11.9 percent.
The report, “Future Mobile Handset-Worldwide Technology and Market Developments 1999-2005,” forecasts sales of 410 million handsets in 2000, with Asia and Europe as the fastest growing markets.
