Nokia Reports 34% Sales Growth in Fourth Quarter 2007

Nokia announced on Thursday its fourth-quarter 2007 financial results, revealing a significant increase in net sales. The company's net sales for the fourth quarter reached EUR 15.7 billion, marking a 34% rise compared to the same period in 2006. For the full year 2007, Nokia's net sales totaled EUR 51.1 billion, an increase of 24% from the previous year.

The Mobile Phones division saw a 5% increase in net sales to EUR 7.4 billion in the fourth quarter, with its operating margin improving substantially to 25.0% from 17.8%. The Multimedia segment experienced a 42% sales growth to EUR 3.0 billion, and its operating margin improved to 22.1% from 15.3%.

The company's Board of Directors will propose a dividend of EUR 0.53 per share for 2007, up from EUR 0.43 per share for 2006. Nokia's diluted earnings per share for the full year 2007 were EUR 1.83, compared to EUR 1.05 in 2006.

Nokia's 2007 results included significant items, such as a substantial gain from the formation of Nokia Siemens Networks. The company estimated its market share for mobile devices reached 40% in the fourth quarter. Operating cash flow for the full year 2007 was EUR 2.7 billion.