Nokia has done really well, post sale of its D&S division to Microsoft. The Q4 2014 results are really good and all three of its businesses are growing and are profitable. Nokia CEO Rajeev Suri has termed it as the power of new Nokia,
The power of the new Nokia could be seen in our fourth quarter results. All of our businesses delivered strong year-on-year net sales growth. Profitability was excellent in Nokia Networks, and we were particularly pleased with our net sales growth in North America and core networks. HERE continued its momentum in the automotive segment, and the early reception to the Nokia N1 tablet has been remarkably favorable, showing the ongoing power of the Nokia brand and the long-term potential of our brand licensing business.
Nokia beats profit forecast in Q4 and Nokia Networks has surprised everyone with its strong profitability of 470 million euros (350 million pounds) or 14% of sales as compared to Analysts’ expectation of a profit of 415 million euros and a margin of 12.4% in a Reuters poll.
Nokia has announced a dividend of 0.14 per share for 2014 and has posted a strong and positive outlook.
- Nokia continues to expect Nokia Networks’ net sales to grow on a year-on-year basis for the full year 2015.
- Nokia continues to expect Nokia Networks’ non-IFRS operating margin for the full year 2015 to be in-line with Nokia Networks’ long-term non-IFRS operating margin range of 8% to 11%.
- Nokia’s outlook for Nokia Networks net sales and non-IFRS operating margin is based on expectations regarding a number of factors, including:
- competitive industry dynamics;
- product and regional mix;
- the timing of major network deployments; and
- expected continued operational improvement.
- Nokia expects Nokia Networks’ net sales and non-IFRS operating margin in the first quarter 2015 to decline seasonally compared to the fourth quarter 2014. Note that Nokia Networks non-IFRS operating margin benefited from a relatively high proportion of software sales in the first quarter 2014.
- Nokia continues to expect HERE’s net sales to grow on a year-on-year basis for the full year 2015.
- Nokia now expects HERE’s non-IFRS operating margin for the full year 2015 to be between 7% and 12%, based on HERE’s leading market position, positive industry trends and improved focus on cost efficiency. This compares to Nokia’s previous outlook for HERE’s non-IFRS operating margin for the full year 2015 to be between 5% and 10%.
- Nokia continues to expect Nokia Technologies’ net sales to grow on a year-on-year basis for the full year 2015, excluding potential amounts related to the expected resolution of our ongoing arbitration with Samsung, which is expected to be concluded during 2015.
- Nokia continues to expect Nokia Technologies’ non-IFRS operating expenses to increase meaningfully on a year-on-year basis for the full year 2015. More specifically, Nokia expects Nokia Technologies’ quarterly non-IFRS operating expenses in 2015 to be approximately in-line with the fourth quarter 2014 level. This is related to higher investments in licensing activities, licensable technologies, and business enablers including go-to-market capabilities, which target new and significant long-term growth opportunities.
- Nokia continues to expect Nokia Group capital expenditures to be approximately EUR 200 million in 2015, primarily attributable to capital expenditures by Nokia Networks.
- Nokia continues to expect Nokia Group financial income and expenses, including net interest expenses and the impact from changes in foreign exchange rates on certain balance sheet items, to amount to an expense of approximately EUR 160 million in 2015, subject to changes in foreign exchange rates and the level of interest-bearing liabilities.
- Nokia continues to expect Group Common Functions non-IFRS operating expenses to be approximately EUR 120 million in 2015.
- Nokia continues to target to record tax expenses in Nokia Group’s Consolidated Income Statements at a long-term effective tax rate of approximately 25%. However, Nokia targets Nokia Group’s cash tax obligations to continue at approximately EUR 250 million annually until Nokia Group’s deferred tax assets have been fully utilized. The cash tax amount may vary depending on profit levels in different jurisdictions and the amount of license income potentially subject to withholding tax.