02 August 2007

Nokia reports Q2 2007 net sales of
EUR 12.6 billion and EPS of EUR 0.72

Nokia continued to grow in the second quarter thanks to an excellent performance from our device businesses.

Nokia's share of the global device market improved to an estimated 38%, while operating margins in our device businesses were at their highest level in three years. Diluted EPS was up 39% year on year, excluding special items.

Nokia now has some major hit products across what is already the industry's broadest product portfolio. I am particularly encouraged by the success of a number of recently launched higher end devices, which made a strong contribution to increased profitability.

Nokia Siemens Networks had a challenging quarter. Both net sales and margins were weak and these adverse developments require decisive action. Accordingly, Nokia and Nokia Siemens Networks are accelerating and increasing the new company's annual cost synergies target. Nokia Siemens Networks must also ensure that the company is positioned for success and leadership in the fast changing infrastructure market.

Says OLLI-PEKKA KALLASVUO, NOKIA CEO

SECOND QUARTER 2007 HIGHLIGHTS

• Nokia diluted EPS of EUR 0.32, excluding special items, growing 39% from Q2 2006.
• Nokia operating cash flow of EUR 1.5 billion.
• Nokia device volumes of 100.8 million units, up 11% sequentially and up 29% year on year.
• Nokia estimated device market share of 38%, up from 36% in Q1 2007 and up from 34% in Q2 2006.
• Nokia device ASP of EUR 90, up from EUR 89 in Q1 2007.
• Mobile Phones, Multimedia and Enterprise Solutions gross and operating margins up significantly sequentially and year on year.
• Enterprise Solutions reached profitability with 18.0% operating margin.
• Excellent performance from new devices: Nokia 6300, Nokia N95 and Nokia E65.
• Nokia Siemens Networks operating margin was -10.5%, excluding special items.
• Nokia and Nokia Siemens Networks have accelerated their cost synergy target for Nokia Siemens Networks and now aim to achieve the approximate EUR 1.5 billion of annual cost synergies by the end of 2008 rather than by 2010.
• Nokia and Nokia Siemens Networks are also targeting a further EUR 500 million of annual cost synergies.

More details and full press release right here