Updated from 8:11 a.m. EST
profit more than doubled in the fourth quarter, but the company released a cautious outlook due to "more challenging" market conditions.
The Finnish cell-phone maker posted earnings of 1.04 billion euros ($1.12 billion), or 22 euro cents a diluted share, including charges, compared with 450 billion euros, of 9 euro cents a diluted share, in the year-ago quarter.
Excluding charges, profit was 1.2 billion euros, or 26 euro cents a diluted share, compared with 1.15 billion euros, or 24 euro cents a share, in the same period last year.
Sales gained 1% to 8.8 billion euros from 8.78 billion euros last year.
Wall Street expected the company to report earnings of 23 euro cents on sales of 8.8 billion euros.
For the full year, profit rose 54% to 3.38 billion euros, or 46 euro cents a diluted share, on a 4% slide in sales to 30 billion euros. Pro forma net profit for 2002 grew 4% to 3.98 million euros, or 82 euro cents a diluted share, from 3.78 billion euros, or 79 euro cents a share.
The company warned that first-quarter sales wouldn't rise as much as analysts had predicted. The company predicted sales would be flat to 9% higher compared with the year-ago quarter. It said earnings per share would be 15 euro cents to 19 euro cents.
Phone sales were flat in the fourth quarter, amid slower-than-expected sales in the Americas. For the year, phone sales were up 4%.
average selling prices trended worse than expected in the quarter," said Bear Stearns wireless-equipment analyst Wojtek Uzdelewicz.
Nokia Chief Executive Jorma Ollila said this trend was due in part to the fact that current cell-phone customers looking to get upgrades have been spending less on new phones.
Nokia said the industry as a whole sold approximately 405 million units in 2002, a 6.5% improvement over 380 million units in 2001. Nokia's global market share improved to 38%.
The company didn't give guidance the full year 2003.
"We are living in a particularly uncertain world," Ollila told analysts in a morning conference call. "I don't think it's realistic in this time of general uncertainty to be more precise than this. We are cautious, yes, but also realistic in terms of what the times are."
Nokia American Depositary Receipts were up 9 cents, or 0.6%, at $15.03 in morning trading.