Nokia Lowers Expectations For The Current Quarter

ByJohn S. McClenahen The continuing U.S. economic slowdown is taking its toll on Nokia Corp.'s financial performance. Although the Espoo, Finland-based telecommunications firm expects its mobile phone business to grow significantly faster than the market during 2001 and that its network business will match market growth, weaker market conditions will lower second-quarter 2001 EPS. Nokia now estimates that compared with the second quarter of 2000, sales growth will be "somewhat below 10%," a contrast to its earlier estimate of 20% growth. As a result, diluted pro-forma EPS is now estimated to be in the range of 0.15 euros to 0.17 euros per share (US12.7 cents to 14.5 cents per share at current exchange rates), down from the previous estimate of 0.20 euros. Nokia also expects to take a one-time second-quarter charge, for restructuring and the write-off of goodwill, of about 190 million euros (US$161.5 million).