Nokia reported Q2 net sales of EUR 13.2 billion, up 4% year on year and up 4 % sequentially (up 11% and 7% at constant currency). The company’s diluted EPS came in at EUR 0.36, up 13% year on year, excluding special items. Nokia operating margin was 14.7%, up from 11.1% in Q2 2007 and flat sequentially, excluding special items.
Nokia estimates that the number of mobile device shipped across the entire industry in Q2 reached 303 million units, up 15% year on year and up 3% sequentially. Nokia mobile device volumes reached 122 million units in the quarter, up 21% year on year and up 6% sequentially. Mobile device shipments are expected to rise in Q3. Nokia now expects industry mobile device volumes in 2008 to grow 10% or more from the approximately 1.14 billion units Nokia estimated for 2007. This is an update to Nokia’s earlier estimation that industry mobile device volumes would grow approximately 10% in 2008.
Some highlights from the quarter:
- Devices & Services net sales totaled EUR 9.1 billion, down 1% year on year and down 2% sequentially (up 6% and 1% at constant currency). Devices & Services operating margin was 20.1%, up from 19.4% in Q2 2007 and down sequentially from 21.2%, excluding special items.
- Nokia Siemens Networks net sales were EUR 4.1 billion, up 18% year on year and up 20% sequentially (up 26% and 23% at constant currency). Nokia Siemens Networks operating margin was 3.8%, excluding special items, and 6.7%, excluding special items and purchase price accounting related items arising from the formation of Nokia Siemens Networks.
Nokia and Nokia Siemens Networks continue to expect the mobile infrastructure and fixed infrastructure and related services market to be flat in Euro terms in 2008, compared to 2007.
- Services and software net sales of EUR 119 million, up 42% sequentially.
- Nokia’s second quarter 2008 reported operating profit decreased 38% to EUR 1.5 billion (including the EUR 460 million negative impact of special items), compared with EUR 2.4 billion in the second quarter 2007 (including the EUR 966 million net positive impact of special items).
- Nokia operating cash flow of EUR 1.5 billion.
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