Nokia stuck broadly by its sales and profit forecast for 2002 today as it posted second-quarter profits in line with expectations.
Nokia, in the process of launching a record number of new phone models to keep ahead of intense competition, said it would reach its second-half sales target of growth of up to 10 per cent. It also forecast earnings per share of €0.79-€0.84 for 2002, compared to a previous estimate of €0.83.
While the forecasts were basically unchanged, the company did give itself a little more margin for error by broadening the forecast range. The market was relieved by the news after taking comfort from somewhat upbeat guidance from Nokia's closest rival Motorola after what has been a turbulent environment with global equity stocks taking successive beatings.
Nokia shares bounced up and down after the statement, trading three per cent higher at €14.80 at 10.15 a.m. after initially dropping some 2.5 per cent. The figures are expected to help set the tone for European markets as the reporting season gets into full swing. "The results are roughly in line with expectations, so I don't think the stock will be very strongly affected," said Johan Strandberg, analyst at Deutsche Bank in Stockholm.