Nokia Says US Economy Not Yet Affecting W. Europe Demand
STOCKHOLM -(Dow Jones)- Nokia Thursday said weakening consumer spending in the U.S. has yet to affect Western European sales.
Nokia Chief Financial Officer Rick Simonson said it was "silly to get into that game" of focusing so heavily on the company's global market share, which helped push Nokia's share price lower following the release of its first-quarter earnings earlier Thursday.
Nokia forecast at its fourth-quarter report that it expected to maintain the 40% global market share reported at that time. Nokia lost ground in the first quarter, showing a market share of 39.1%. Simonson said a less-than one percentage point difference is a virtually flat in Nokia's eyes. Nokia shares fell following the report and at 1428 GMT traded down EUR2.45, or 11.6%, at EUR18.52, underperforming a broadly lower Helsinki market.
Simonson said the company still expects an industry volume growth of 10% in 2008, and said it has yet to see Western Europe being affected by lagging consumer demand in the U.S.
Net profit rose 25% to EUR1.22 billion from EUR979 million in the year-earlier period, but missed analysts' expectations of EUR1.39 billion.
-By Adam Ewing, Dow Jones Newswires; +46 8 545 130 95; adam.ewing@dowjones.com
(END) Dow Jones Newswires
Posted to the site on 17th April 2008
