By Tarmo Virki
HELSINKI, Aug 2 (Reuters) - A robust appetite for new phones in emerging markets boosted second-quarter sales and profits at Nokia (NOK1V.HE: Quote, Profile , Research), the world's top cellphone maker, and hoisted its shares to their highest level in more than five years.
Nokia said its underlying second-quarter earnings per share rose 39 percent from a year ago to 0.32 euros, compared with expectations of 0.25 euros in a Reuters poll, when adjusted for the performance of its networks venture with Siemens (SIEGn.DE: Quote, Profile , Research).
Shares in Nokia soared 9 percent to 22.50 euros, levels they last saw in early 2002, pulling European indexes higher. Shares in Nokia are up 44 percent so far this year.
"We are kind of hitting on all cylinders," Nokia's Chief Financial Officer Rick Simonson told a conference call.
Operating profit margins at Nokia's handset units rose to 20.9 percent, their highest level since end-2003 and well above analysts' average forecast of 16.9 percent.
"I think the investment story has now even improved if Nokia is to remain at such margin levels," said Marko Alaraatikka, Portfolio Manager at Evli Funds in Helsinki. "Margins were so strong thanks to Nokia's economies of scale .... as well as due to Motorola's weakness."
http://investing.reuters.co.uk/news/articleinvesting.aspx?type=marketsNewsUS&storyID=2007-08-02T151237Z_01_L02868149_RTRIDST_0_NOKIA-RESULTS-UPDATE-5.XML
Friday, August 3, 2007
Nokia stars in handset market shakedown
LONDON -- Global mobile phone shipments grew a modest 11 percent year-on-year to reach 258 million units in the second quarter of the year, with Nokia cementing its leading position while Motorola slipped badly in the quarter, yielding second position to Samsung, according to Strategy Analytics.
Nokia took a record 39 percent share, having shipped 100.8 million units, and the market research group predicts the Finnish company will pass 40 percent global market share level in the second half of 2007.
The 258 million units represents only 4 per cent growth quarter-on-quarter, and is the second consecutive quarter since Q2 2005 that annual growth has been below the 20 percent mark.
The market research group predicts 283 million units globally for Q3 2007, for an annual growth rate of 12 percent, with demand form developing countries continuing to drive volumes.
Strategy Analytics (Milton Keynes, England) says inventory continued to be burned off during the second quarter quarter, and estimates 4 million units of excess were cleared from stockpiles. It adds demand remained healthy in emerging markets.
During the quarter Motorola's crisis deepened, as shipments plummeted to 35.5 million units (down from 45.4 million last quarter and thus only taking a 13.8 percent share) and margins fell.
Samsung staged a strong quarter to take second position for the first time, shipping 37.4 million units (14.5 percent), up from 34.8 million phones the previous quarter. It is said to have made particularly good progress in China and Western Europe.
The down-side is that ASPs at Samsung fell 5 percent sequentially, and operating margin slipped by 5 points, to 8 percent. "Samsung is marketing and pricing aggressively to expand its entry-tier product line," Strategy Analytics notes.
Sony Ericsson made up 10 percent of volumes and logged its best performance since the merger in 2001. LG also increased marketshare and profits and the market researchers say its effort to consolidate product platforms on an enhanced device portfolio is paying off.
Apple is said to have captured an insignificant 0.1 percent global share, shifting 0.3 million iPhones.
However, Strategy Analytics predicts Apple will push toward a 1 percent quarterly share by the end of 2007 and that it is well capable of shipping more than the 10 million units in 2008.
"Provided Apple can expand its distribution channels outside the US, with 3G products in Europe next on the list, Apple stands a good chance of becoming the worlds number 6 vendor by 2009, easily overtaking the likes of Panasonic, Sharp and Sagem along the way," the market research group suggests. -->
http://www.eetimes.com/news/semi/showArticle.jhtml?articleID=201202596
Nokia took a record 39 percent share, having shipped 100.8 million units, and the market research group predicts the Finnish company will pass 40 percent global market share level in the second half of 2007.
The 258 million units represents only 4 per cent growth quarter-on-quarter, and is the second consecutive quarter since Q2 2005 that annual growth has been below the 20 percent mark.
The market research group predicts 283 million units globally for Q3 2007, for an annual growth rate of 12 percent, with demand form developing countries continuing to drive volumes.
Strategy Analytics (Milton Keynes, England) says inventory continued to be burned off during the second quarter quarter, and estimates 4 million units of excess were cleared from stockpiles. It adds demand remained healthy in emerging markets.
During the quarter Motorola's crisis deepened, as shipments plummeted to 35.5 million units (down from 45.4 million last quarter and thus only taking a 13.8 percent share) and margins fell.
Samsung staged a strong quarter to take second position for the first time, shipping 37.4 million units (14.5 percent), up from 34.8 million phones the previous quarter. It is said to have made particularly good progress in China and Western Europe.
The down-side is that ASPs at Samsung fell 5 percent sequentially, and operating margin slipped by 5 points, to 8 percent. "Samsung is marketing and pricing aggressively to expand its entry-tier product line," Strategy Analytics notes.
Sony Ericsson made up 10 percent of volumes and logged its best performance since the merger in 2001. LG also increased marketshare and profits and the market researchers say its effort to consolidate product platforms on an enhanced device portfolio is paying off.
Apple is said to have captured an insignificant 0.1 percent global share, shifting 0.3 million iPhones.
However, Strategy Analytics predicts Apple will push toward a 1 percent quarterly share by the end of 2007 and that it is well capable of shipping more than the 10 million units in 2008.
"Provided Apple can expand its distribution channels outside the US, with 3G products in Europe next on the list, Apple stands a good chance of becoming the worlds number 6 vendor by 2009, easily overtaking the likes of Panasonic, Sharp and Sagem along the way," the market research group suggests. -->
http://www.eetimes.com/news/semi/showArticle.jhtml?articleID=201202596
Nokia Rings NY Opening Higher
U.S. stock futures pointed to some recovery Thursday, although investors remained cautious amid fears that a tightening in U.S. lending could hurt corporate and economic growth. Nokia jumped over 7% in pre-market trading after it said its Q2 earnings more than doubled. Eastman Kodak Co. and Viacom reported better-than-expected quarterly results. Further in earnings news, Lenovo Group posted a 12-fold jump in quarterly profits,beating analyst expectations.
-->
9:00AM U.S. stock futures pointed to a positive opening, helped by strong earnings from Nokia, Eastman Kodak.U.S. stock futures pointed to some recovery Thursday, although investors remained cautious amid fears that a tightening in U.S. lending could hurt corporate and economic growth. Market also welcomed news that both the Bank of England and the European Central Bank interest rates unchanged, in line with expectations. Nokia (NOK: chart) jumped over 7% in pre-market trading after it said its Q2 earnings more than doubled. Eastman Kodak Co. (EK: chart) and Viacom (VIA: chart) reported better-than-expected quarterly results. Further in earnings news, Lenovo Group posted a 12-fold jump in quarterly profits, beating analyst expectations.Walt Disney & Co. (DIS: chart) edged up after posting a 5% profit rise and agreed to buy Club Penguin for $300 million. Starbucks (SBUX: chart) added 1.2% after it reported an in-line-with-estimate 9% profit rise on 20% sales growth.On the economic news front, the Labor Department report said that weekly jobless claims in the latest week rose 4,000 to 307,000. After early losses, S&P 500 futures rose 3.1 points at 1,473.00 and Nasdaq 100 futures added 6 points at 1,966.50. Dow industrial futures rose 22 points. 8:15AM Eastman Kodak swung to profit in Q2.Eastman Kodak (EK: chart) said Thursday it swung to a Q2 profit, benefiting from lower costs, a $31 million increase in traditional earnings and a $97 million increase in digital earnings. During the quarter, the company earned $592 million, or $2.06 a share, compared with a loss of $282 million, or 98 cents a share last year, easily beating estimates of 39 cents per share on revenue of $10.19 billion.The company posted a loss from continuing operations of $135 million, or 47 cents a share vs. a loss of $355 million, or $1.24 a share, a year ago. Eastman Kodak said quarterly net sales declined 6.6% to $2.51 billion. The company’s sales in its consumer digital imaging group fell to $1 billion from $1.11 billion a year ago, while sales in its graphic communications unit gained 2% to $929 million. The company expects 2007 revenue decline on the range of 4% to 7%.
http://www.123jump.com/market-update/Nokia-Rings-NY-Opening-Higher/22780/
-->
9:00AM U.S. stock futures pointed to a positive opening, helped by strong earnings from Nokia, Eastman Kodak.U.S. stock futures pointed to some recovery Thursday, although investors remained cautious amid fears that a tightening in U.S. lending could hurt corporate and economic growth. Market also welcomed news that both the Bank of England and the European Central Bank interest rates unchanged, in line with expectations. Nokia (NOK: chart) jumped over 7% in pre-market trading after it said its Q2 earnings more than doubled. Eastman Kodak Co. (EK: chart) and Viacom (VIA: chart) reported better-than-expected quarterly results. Further in earnings news, Lenovo Group posted a 12-fold jump in quarterly profits, beating analyst expectations.Walt Disney & Co. (DIS: chart) edged up after posting a 5% profit rise and agreed to buy Club Penguin for $300 million. Starbucks (SBUX: chart) added 1.2% after it reported an in-line-with-estimate 9% profit rise on 20% sales growth.On the economic news front, the Labor Department report said that weekly jobless claims in the latest week rose 4,000 to 307,000. After early losses, S&P 500 futures rose 3.1 points at 1,473.00 and Nasdaq 100 futures added 6 points at 1,966.50. Dow industrial futures rose 22 points. 8:15AM Eastman Kodak swung to profit in Q2.Eastman Kodak (EK: chart) said Thursday it swung to a Q2 profit, benefiting from lower costs, a $31 million increase in traditional earnings and a $97 million increase in digital earnings. During the quarter, the company earned $592 million, or $2.06 a share, compared with a loss of $282 million, or 98 cents a share last year, easily beating estimates of 39 cents per share on revenue of $10.19 billion.The company posted a loss from continuing operations of $135 million, or 47 cents a share vs. a loss of $355 million, or $1.24 a share, a year ago. Eastman Kodak said quarterly net sales declined 6.6% to $2.51 billion. The company’s sales in its consumer digital imaging group fell to $1 billion from $1.11 billion a year ago, while sales in its graphic communications unit gained 2% to $929 million. The company expects 2007 revenue decline on the range of 4% to 7%.
http://www.123jump.com/market-update/Nokia-Rings-NY-Opening-Higher/22780/
Stocks Rise Cautiously After Earnings
NEW YORK -
Stocks were mostly higher Thursday after Wall Street received some solid readings on corporate earnings and the job market, but remained nervous that a tighter credit market could impede U.S. growth.
Investors were relieved that profits at companies such as Nokia Corp. came in better than expected, and after the Labor Department said jobless claims rose last week by a slightly smaller number than economists predicted. The report - which comes before Friday's highly anticipated July employment report - was a promising sign that the job market is holding up.
"Something that has kept consumers spending is that unemployment is very low," said Janna Sampson, director of portfolio management at Oakbrook Investments. "Even if they're being pinched a little bit by oil prices or the inability to borrow, people will spend if they have a job. If we see employment weakening, that's really, really negative."
But with the market jumpy about rising mortgage defaults leading to losses and tougher lending standards, it was impossible to predict what turn trading might take. In the latest indication that the lending climate is deteriorating, Accredited Home Lenders Holding Co., a nonbank mortgage lender, said in a filing Thursday its business is in jeopardy, and its stock plummeted 41 percent.
In late afternoon trading, the Dow Jones industrial average rose 22.52, or 0.17 percent, to 13,384.89.
Broader stock indicators also gained. The Standard & Poor's 500 index fell 3.82, or 0.26 percent, to 1,461.99, and the Nasdaq composite index rose 8.33, or 0.33 percent, to 2,562.20.
Bonds were little changed, with the yield on the benchmark 10-year Treasury note at 4.79 percent, the same as late Wednesday.
The blue chip index, now about 4.3 percent below the record close it reached in early July, has seen triple-digit swings become the norm in recent weeks.
Part of the reason behind the market's volatility is that the Dow rose to the 14,000 mark so quickly, said Jack A. Ablin, chief investment officer at Harris Private Bank. He has predicted the Dow will end the year at 14,000. "From that perspective, the market got a little ahead of itself," he said.
He added, though, that late-day surges - like the Dow's 150-point rally on Wednesday - are heartening. "Movements in the last half-hour are generally smarter money. It's usually program trading, institutional buying or selling," Ablin said.
The dollar was mixed against other major currencies, after the European Central Bank and the Bank of England kept their key interest rates steady Thursday. More rate boosts overseas could further injure the dollar, which is trading near multi-year lows against the euro and the British pound.
In other economic data, U.S. factories saw demand for their goods rise in June by 0.6 percent, up from a 0.5 percent drop in May but lower than expected.
Several major earnings reports came in strong Thursday.
Nokia, the biggest cell phone maker in the world, said its second-quarter profit more than doubled on strong sales. U.S. shares of the Finnish company soared $2.28, or 8.1 percent, to $30.70.
Profits at Lear Corp., Eastman Kodak Co. and CVS Caremark Corp. also surpassed Street estimates and saw their shares rise.
Meanwhile, another takeover deal lifted the market's spirits - at least for the time being. Fiserv Inc. said it agreed to buy CheckFree Corp. in an all-cash deal worth about $4.4 billion, driving up CheckFree's shares $8.67, or 23.5 percent, to $45.40.
But not all company news was positive Thursday: Nortel Networks Corp. and Gateway Inc. tumbled after reporting quarterly results that disappointed investors. Also, Getty Images Inc. and Clorox Co. plunged after releasing worse-than-expected projections for later in the year.
Crude oil futures rose 33 cents to $76.86 a barrel on the New York Mercantile Exchange. Crude is still trading below Tuesday's record close of $78.21.
Gold prices rose.
Advancing issues outnumbered decliners by about 5 to 3 on the New York Stock Exchange, where volume came to 1.15 billion shares.
The Russell 2000 index of smaller companies rose 3.68, or 0.47 percent, to 781.60.
In Asian trading, Japan's Nikkei stock average rose 0.67 percent, Hong Kong's Hang Seng index dipped 0.05 percent, and China's Shanghai Composite Index rose 2.5 percent.
In European trading, Britain's FTSE 100 rose 0.65 percent, Germany's DAX index rose 0.83 percent, and France's CAC-40 rose 0.17 percent.
http://www.forbes.com/feeds/ap/2007/08/02/ap3982419.html
Stocks were mostly higher Thursday after Wall Street received some solid readings on corporate earnings and the job market, but remained nervous that a tighter credit market could impede U.S. growth.
Investors were relieved that profits at companies such as Nokia Corp. came in better than expected, and after the Labor Department said jobless claims rose last week by a slightly smaller number than economists predicted. The report - which comes before Friday's highly anticipated July employment report - was a promising sign that the job market is holding up.
"Something that has kept consumers spending is that unemployment is very low," said Janna Sampson, director of portfolio management at Oakbrook Investments. "Even if they're being pinched a little bit by oil prices or the inability to borrow, people will spend if they have a job. If we see employment weakening, that's really, really negative."
But with the market jumpy about rising mortgage defaults leading to losses and tougher lending standards, it was impossible to predict what turn trading might take. In the latest indication that the lending climate is deteriorating, Accredited Home Lenders Holding Co., a nonbank mortgage lender, said in a filing Thursday its business is in jeopardy, and its stock plummeted 41 percent.
In late afternoon trading, the Dow Jones industrial average rose 22.52, or 0.17 percent, to 13,384.89.
Broader stock indicators also gained. The Standard & Poor's 500 index fell 3.82, or 0.26 percent, to 1,461.99, and the Nasdaq composite index rose 8.33, or 0.33 percent, to 2,562.20.
Bonds were little changed, with the yield on the benchmark 10-year Treasury note at 4.79 percent, the same as late Wednesday.
The blue chip index, now about 4.3 percent below the record close it reached in early July, has seen triple-digit swings become the norm in recent weeks.
Part of the reason behind the market's volatility is that the Dow rose to the 14,000 mark so quickly, said Jack A. Ablin, chief investment officer at Harris Private Bank. He has predicted the Dow will end the year at 14,000. "From that perspective, the market got a little ahead of itself," he said.
He added, though, that late-day surges - like the Dow's 150-point rally on Wednesday - are heartening. "Movements in the last half-hour are generally smarter money. It's usually program trading, institutional buying or selling," Ablin said.
The dollar was mixed against other major currencies, after the European Central Bank and the Bank of England kept their key interest rates steady Thursday. More rate boosts overseas could further injure the dollar, which is trading near multi-year lows against the euro and the British pound.
In other economic data, U.S. factories saw demand for their goods rise in June by 0.6 percent, up from a 0.5 percent drop in May but lower than expected.
Several major earnings reports came in strong Thursday.
Nokia, the biggest cell phone maker in the world, said its second-quarter profit more than doubled on strong sales. U.S. shares of the Finnish company soared $2.28, or 8.1 percent, to $30.70.
Profits at Lear Corp., Eastman Kodak Co. and CVS Caremark Corp. also surpassed Street estimates and saw their shares rise.
Meanwhile, another takeover deal lifted the market's spirits - at least for the time being. Fiserv Inc. said it agreed to buy CheckFree Corp. in an all-cash deal worth about $4.4 billion, driving up CheckFree's shares $8.67, or 23.5 percent, to $45.40.
But not all company news was positive Thursday: Nortel Networks Corp. and Gateway Inc. tumbled after reporting quarterly results that disappointed investors. Also, Getty Images Inc. and Clorox Co. plunged after releasing worse-than-expected projections for later in the year.
Crude oil futures rose 33 cents to $76.86 a barrel on the New York Mercantile Exchange. Crude is still trading below Tuesday's record close of $78.21.
Gold prices rose.
Advancing issues outnumbered decliners by about 5 to 3 on the New York Stock Exchange, where volume came to 1.15 billion shares.
The Russell 2000 index of smaller companies rose 3.68, or 0.47 percent, to 781.60.
In Asian trading, Japan's Nikkei stock average rose 0.67 percent, Hong Kong's Hang Seng index dipped 0.05 percent, and China's Shanghai Composite Index rose 2.5 percent.
In European trading, Britain's FTSE 100 rose 0.65 percent, Germany's DAX index rose 0.83 percent, and France's CAC-40 rose 0.17 percent.
http://www.forbes.com/feeds/ap/2007/08/02/ap3982419.html
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