Nokia Corp. offered its first market outlook for its newly reorganized business divisions, including its new Enterprise Solutions and Multimedia segments, but the news seemed to do little for investors as the company’s stock dropped by almost 40 cents to about $17.70 per share following the news Monday.
The company’s stock was up slightly in trading today to about $17.90 per share.
At the company’s Capital Market Days, Nokia reiterated its fourth-quarter outlook and said its total addressable market totaled $235 billion.
“We have the concepts to make it happen,” said Jorma Ollila, the company’s chairman and chief executive officer.
Nokia in October said it would realign its business around four key segments: mobile phones, networks, enterprise solutions and multimedia products. The company said its new Multimedia division has similar gross margins as its mobile phone business, and its Enterprise Solutions division has slightly higher gross margins than the phone business. Nokia said it expects its Multimedia division to reach break even by the end of next year, and its Enterprise Solutions division to reach break even sometime in 2005.
As for its mobile-phone business, Nokia said it expects faster-than-market growth, which it said will be around 10 percent. Nokia said it expects the overall mobile infrastructure market to continue to stabilize, remaining flat next year.
