Nokia reported an increase in fourth-quarter EPS to EUR 0.26 from EUR 0.15 a year earlier, helped by a one-time tax gain of EUR 213 million. Excluding the tax effect and a number of restructuring charges, EPS was down 1 cent to EUR 0.25. The world's biggest handset maker reported quarterly sales down 5.3 percent from a year earlier to EUR 11.99 billion, as 0.5 percent growth at its devices division was offset by lower revenues from Nokia Siemens Networks. However a profit at NSN and better margins from handsets helped the group increase overall operating profit, excluding one-time items, by 18.9 percent year-on-year to EUR 1.47 billion. While the company maintained its outlook for further improvements in margins this year, it forecast results from handsets and NSN at the low end or below the annual targets in Q1, due to seasonal effects. Nokia also reiterated its outlook for the global mobile handset market to grow around 10 percent in units this year, and its own market share to come in stable versus an estimated 38 percent in 2009, down from 39 percent in 2008. The mobile and fixed infrastructure market is also still expected to be flat in euro terms this year. Nokia left its annual dividend unchanged at EUR 0.40 per share, and the group finished 2009 with cash of EUR 8.9 billion.
The Devices & Services division posted quarterly sales of EUR 8.18 billion, up 0.5 percent year-on-year and up 18 percent sequentially. Excluding currency effects, sales rose 2 percent from a year earlier. Services accounted for EUR 169 million in sales, up 15 percent from Q3. Nokia shipped 126.9 million phones in the quarter, up 12 percent from a year ago and 17 percent more than in Q3. The company said it outperformed annual market growth of 8 percent, with worldwide handset sales estimated at 362 million units in Q4. Nokia put its market share at 39 percent in Q4, up from 37 percent a year earlier and 38 percent in Q3. The company also reported a higher share of the smartphone market, at an estimated 40 percent versus 35 in Q3. Nokia sold 20.8 million smartphones in the quarter, up from 16.4 million in Q3, while the overall market grew to an estimated 52.4 million units from 47.0 million in Q3. Stronger smartphone sales helped boost Nokia's average sellng price to EUR 63 from EUR 62 in Q3. The Devices & Services division reported operating profit, excluding restructuring charges, of EUR 1.26 billion, up 27.9 percent year-on-year, and the margin improved to 15.4 percent from 12.1 a year ago. Nokia maintained a target for the full-year adjusted margin of 12-14 percent, versus a reported 12.5 percent in 2009, but said the first-quarter results would be at the low end of the range. The division's sales are forecast at EUR 6.5-7.0 billion in Q1.
Nokia Siemens Networks recorded quarterly sales down 16 percent year-on-year to EUR 3.63 billion, while the operating result moved to a profit of EUR 17 million from a loss of EUR 179 million. The company still targets EUR 500 million in cost savings by the end of 2011, and around EUR 550 million in restructuring charges this year will go towards cutting global headcount by 7-9 percent. NSN maintained its target for a full-year adjusted operating margin of breakeven to 2 percent, versus 0.2 percent in 2009, but warned that the first-quarter result will be below this target due to seasonal effects. NSN's first-quarter sales are forecast at EUR 2.6-2.9 billion. Over the full year, the company aims to outperform the expected flat market. Navteq posted quarterly sales up 10 percent from a year earlier to EUR 225 million, while the operating loss narrowed to EUR 56 million from EUR 73 million.
