SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a -16 or 15d -16 of
the Securities Exchange Act of 1934
Report on Form 6-K dated September 10, 2002
Nokia Corporation
Nokia House
Keilalahdentie 4
02150 Espoo
Finland
(Name and address of registrant's principal executive office)
(Indicate by check mark whether the registrant files or will file
annual reports under cover of Form 20-F or Form 40-F.)
Form 20-F __X__ Form 40-F _____
Enclosure: Nokia sees 3Q mobile phone sales strengthening and EPS
within guidance (September 10, 2002)
Page 1 of 3 Total Pages
NOKIA
PRESS RELEASE
September 10, 2002
Nokia sees 3Q mobile phone sales strengthening and EPS within guidance
Nokia today provided a scheduled mid-quarter update to the company's business
outlook for the third quarter 2002.
Based on developments during July and August, third-quarter sales for the Nokia
group are expected to be in the range of EUR 7.1 to EUR 7.4 billion. Third-
quarter pro forma EPS (diluted) is estimated to be at the upper end of the
earlier indicated range of EUR 0.15 and EUR 0.17.
Sales of Nokia Mobile Phones in the third quarter are expected to grow by 4%-9%,
compared with the third quarter 2001. Nokia sees mobile phone profitability in
line, if not exceeding, earlier expectations. Pro forma operating margins are
expected to be at or above 20%, reflecting good take up of Nokia's new products,
including the Nokia 7650 imaging phone.
Backed by a strong overall demand pickup especially in Europe during the first
two months of the quarter, the company is increasingly confident with its
full-year overall market volume estimate of 400 million handsets in 2002.
In mobile networks, the GSM market environment remained challenging with
operator investments showing greater-than-expected declines. WCDMA equipment
deployment and testing is proceeding well and the company expects WCDMA revenue
recognition to start in the third quarter. As a result of the GSM market
decline, Nokia Networks third quarter sales are expected to decline by
approximately 5% compared with the third quarter in 2001, with Nokia Networks
pro forma operating margins now estimated to be about 5% for the third quarter.
The sales estimate for Nokia Networks includes an expected recognition of
revenue related to WCDMA network equipment of about EUR 500 million under the
provision that set technology milestones are met by the end of the quarter.
The company has agreed with France Telecom the principle terms for the
conversion of outstanding customer financing related to MobilCom. As indicated
earlier, the conversion of existing loans into a new facility will require a
write-off of around EUR 300 million, affecting Nokia's third-quarter earnings
(reported). As part of this agreement, Nokia will withdraw all further financing
commitments to MobilCom. This will reduce Nokia's total customer financing
commitment by an additional EUR 530 million. These agreements are subject to the
overall resolution of the MobilCom situation as expected to be carried out by
France Telecom or one of its affiliates.
It should be noted that certain statements herein which are not historical
facts, including, without limitation those regarding A) the timing of product
deliveries; B) our ability to develop and implement new products and
technologies; C) expectations regarding market growth and developments; D)
expectations for growth and profitability; and E) statements preceded by
"believe," "expect," "anticipate," "foresee" or similar expressions, are
forward-looking statements. Because these statements involve risks and
uncertainties, actual results may differ materially from the results that we
currently expect. Factors that could cause these differences include, but are
not limited to: 1) developments in the mobile communications market including
the continued development of the replacement market and the Company's success in
the 3G market; 2) demand for products and services; 3) market acceptance of new
products and service introductions; 4) the availability of new products and
services by operators; 5) weakened economic conditions in many of the Company's
principal markets; 6) pricing pressures; 7) intensity of competition; 8) the
impact of changes in technology; 9) consolidation or other structural changes in
the mobile communications market; 10) the success and financial condition of the
Company's partners, suppliers and customers; 11) the management of the Company's
customer financing exposure; 12) the continued success of product development by
the Company; 13) the continued success of cost-efficient, effective and flexible
manufacturing by the Company; 14) the ability of the Company to source component
production and R&D without interruption and at acceptable prices; 15) inventory
management risks resulting from shifts in market demand; 16) fluctuations in
exchange rates, including, in particular, the fluctuations in the euro exchange
rate between the US dollar and the Japanese yen; 17) impact of changes in
government policies, laws or regulations; 18) the risk factors specified on
pages 10 to 17 of the Company's Form 20-F for the year ended December 31, 2001.
For more information:
Lauri Kivinen, Corporate Communications, tel. +358 7180 34495
Ulla James, Investor Relations, tel. +1 972 894 4880
Antti Raikkonen, Investor Relations, tel. +358 7180 34290
www.nokia.com
- - Nokia plans a 3Q results announcement for October 17, a 4Q mid-quarter update
for December 10, and a 4Q results announcement for 23 January, 2003.
Page 2 of 3 Total Pages
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant, Nokia Corporation, has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
Date: September 10, 2002 Nokia Corporation
By: /s/ Ursula Ranin
-----------------------
Name: Ursula Ranin
Title: Vice President, General Counsel
Page 3 of 3 Total Pages