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Nokia raises long-term operating margin target
(chinadaily.com.cn)
Updated: 2014-11-24

Nokia, a Finland-based telecommunications company, Friday announced in London that it predicts its main functional department Nokia Networks' long-term operating margin range to be 8 percent to 11 percent, slightly higher than its previous estimation of 5 percent to 10 percent.

Nokia outlined the group's strategic priorities and financial targets at its annual Capital Market Day event.

The group expects Nokia Networks' net sales to grow on a year-on-year basis throughout 2015, with its operating margin range forecast in line with the long-term target, said Nokia.

Nokia ranks third in the global network equipment market after Ericsson and Huawei Technologies.

Net sales of HERE, Nokia's map services, is expected to grow on a year-on-year basis for all of 2015, with an operating margin expectation between 5 percent to 10 percent. While Nokia Technologies' net sales are also expected to grow on a year-on-year basis for the whole year next year, figures showed.

Rajeev Suri, President and CEO at Nokia, said at the event: "The rapidly evolving world of technology provides the context for Nokia's vision and strategy. Now it's about connecting things as well as people, and we expect to see more than 50 billion connected things - devices, modules and sensors - by 2025."

Nokia will focus its approach to value creation on four areas: disciplined business portfolio management and capital allocation; clear business-specific strategies; operational excellence; and a high-performance culture with strong values, said Suri.

According to the company's strategic outlines, Nokia Networks' target is to grow slightly faster than the market over the long-term, and deliver on profitability goals.

HERE's target is to be the number one in the automotive sector, grow in the enterprise segment, and leverage the unique assets that HERE has with leading Internet players. Meanwhile, Nokia Technologies' will focus on patent, technology, and brand licensing, as well as investment in products and services which are in their infancy on Nokia's innovation.

Nokia's capital expenditure in 2015 is expected to be around 200 million euros (or 249 million U.S. dollars), primarily attributable to capital expenditures by Nokia Networks.

(Source: Xinhua)



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