The world's largest mobile phone-maker Nokia today posted fourth-quarter profits in line with forecasts but said the handset market will slow this year.
The news drove Nokia shares down almost 8 per cent on European equity markets.
"It's a profit warning for the first quarter of this year with margins falling in mobile phones," said Mr Hakan Vramme of Fischer Partners in Stockholm.
Pre-tax profit for the fourth quarter of 2000 rose 39 per cent to euro 1.77 billion compared to the same period last year. This was slightly higher than the consensus forecast of euro 1.70 billion.
Nokia also reiterated its first-half 2001 sales growth of 25 to 35 per cent with continued high profitability.
The Finnish company also pushed back the launch of its high-speed GPRS mobile phone - which will give "always on" Internet access - to the third quarter of this year from the first-half of 2001, confirming industry worries the success of GPRS will take longer than earlier expected.
Reuters