Nokia today posted resilient fourth-quarter earnings on the back of strong Christmas sales of mobile phones.
But the company, which makes one in three of all mobile phones, forecast weaker sales and profits in the first quarter amid industry-wide weak demand for handsets and telecoms networks.
Nokia said it expected to ring in first-quarter pro forma earnings per share (EPS) of €0.15-€0.17, down from €0.22 in the first three months of last year.
However, Nokia said it saw an improvement in conditions during the current year and stuck to its sales growth target.
Nokia sees market conditions improving during 2002. Both the company's infrastructure and mobile phone businesses are expected to show full-year sales growth of about 15 percent, Nokia said in a statement.
Nokia posted fourth-quarter pro forma EPS, which excludes goodwill amortisation and nonrecurring items, of €0.24 - higher than analysts expected and above Nokia's own forecasts. This was down from €0.25 in the same 2000 quarter.
Nokia shares, which have risen about 70 per cent and outperformed European rivals by some 15 percent since September 11th, rose 7 per cent to €26.15 on the earnings report by mid-morning.
Loss-making rivals Ericsson, which reports earnings tomorrow, rose 2.7 per cent to 48.90 Swedish crowns. Siemens gained 1.8 per cent to €71.90 while Alcatel of France gained 6 per cent.