Nokia Q1 Sales Up - Profits Down

Nokia's first quarter 2007 net sales increased 4% to EUR 9.9 (US$13.45) billion, compared with EUR 9.5 (US$12.9) billion in the first quarter 2006. At constant currency, group net sales would have increased 6%.

Nokia's first quarter 2007 operating profit decreased 7% to EUR 1.27 (US$1.72) billion (including the negative impact of EUR 69 million in special items), compared with EUR 1.37 (US$1.86) billion in the first quarter 2006 (including the negative impact of EUR 22 million in special items). Nokia's first quarter 2007 operating margin was 12.9% (14.4%) including the impact of the respective special items, and 13.6% (14.6%) excluding the special items.

Chief Executive Officer Olli-Pekka Kallasvuos commented "I'm encouraged by Nokia's first quarter 2007 performance. Our profitability was strong, with both gross and operating margins up sequentially, excluding special items. We also saw good year on year device volume growth that led to an increase in our market share, further solidifying our number one position in the industry.

In the first quarter 2007, the total mobile device volume achieved by the Mobile Phones, Multimedia and Enterprise Solutions business groups reached 91.1 million units, representing 21% year on year growth and a 14% sequential decrease. The overall industry volume for the same period reached an estimated 253 million units, representing 18% year on year growth and a 13% sequential decrease.

Based on the company's preliminary market estimate, Nokia's market share for the first quarter 2007 was 36%, compared with 35% in the first quarter 2006 and 36% in the fourth quarter 2006.

Nokia Handset Sales Volume by Geographic Area