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Nokia in January-March: Continued Strong Growth and Good Profitability

Million FIM 1Q 1997 1Q 1996 Change 1996

Net sales 11 331 7 931 +43% 39 321
Nokia Telecommunications 3 734 2 777 +34% 13 333
Nokia Mobile Phones 6 151 3 889 +58% 21 579
Operating profit 1 462 512 +186% 4 266
Profit before tax and
minority interests 1 452 399 +264% 3 898
Net profit 1 073 324 +231% 3 263
Earnings per share (FIM) 3.79 1.14 +232% 10.73

Nokia, a global telecommunications leader and the world´s largest supplier of digital mobile telephones, today reports that its first quarter net sales totaled FIM 11 331 million, up 43% from the first quarter of 1996. Nokia's operating profit (IAS) increased 186% over the year-ago period to FIM 1 462 million (FIM 512 million a year ago). Profit before tax and minority interests totaled FIM 1 452 million (FIM 399 million a year ago). First quarter net profit totaled FIM 1 073 million (FIM 324 million a year ago).

Strong growth continued both at Nokia Telecommunications (34%) and at Nokia Mobile Phones (58%) over the January-March period in 1996. Excluding the impact of discontinued businesses, Other Operations grew by 53% in the first quarter of 1997 compared to the same period of 1996.

The increase in Nokia´s operating profit was mainly attributable to the significant improvement in the operating profit of Nokia Mobile Phones. The business group recorded a healthy profitability level compared to a slight operating loss in the first quarter of 1996. With continued strong sales growth, Nokia Telecommunications also reported higher profits than in the comparable period a year ago. Operating profit of Other Operations was also higher than in the first quarter of 1996.

Commenting on the company's January-March results, Nokia President and CEO Jorma Ollila stated, "Nokia´s results for the first quarter in 1997 showed continued strong growth and good profitability and we enhanced our leading position in many of the fastest growing segments in the telecommunications industry." Looking to the future Ollila continued, "We intend to strengthen our position as a leading global supplier of telecommunications systems and equipment. This requires speed in anticipating and fulfilling evolving customer needs, quality in products and processes and openness with people and ideas."

Headquartered in Finland, Nokia is the world’s largest manufacturer of digital mobile phones and the second largest supplier of GSM/DCS digital networks with sales in more than 120 countries. Nokia is also a global leader in wireless data terminals and infrastructure as well as a significant supplier of advanced transmission systems, access networks and multimedia equipment. With net sales totaling USD 8.5 billion in 1996, Nokia employs over 33 000 people in 45 countries. Nokia´s shares are listed on the Helsinki, New York, London, Stockholm, Frankfurt and Paris stock exchanges.

Currency rate March 31, 1997, 1 FIM = 0.198 USD