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Nokia Q4 Profit More Than Doubles; Affirms FY20 Earnings Outlook - Quick Facts

Nokia Corp. (NOK) on Thursday reported a profit for the fourth quarter that more than doubled to 563 million euros from 203 million euros in the previous-year quarter. Reported earnings per share increased to 0.10 euros from 0.03 euros in the prior-year period.

Non-IFRS earnings per share were 0.15 euros, up from 0.13 euros a year ago, primarily driven by continued progress related to the company's cost savings program, which resulted in lower operating expenses across Networks, Nokia Software and Nokia Technologies.

Operating profit surged 45 percent to 803 million euros from 552 million euros in the year-ago period. Operating margin increased 360 basis points to 11.6 percent.

Fourth-quarter net sales were 6.90 billion euros, up slightly from 6.87 billion euros last year. On a constant currency basis, net sales decreased 1 percent.

Excluding one-time licensing net sales in both quarters, net sales for the quarter grew 1 percent, reflecting improved overall industry demand and particularly strong growth with enterprise customers, driven by increased demand for mission-critical networking solutions.

Nokia said its board expects to resume dividend distributions after the company's net cash position improves to about 2 billion euros, taking into account Nokia's expected cash flow generation.

However, the company added that due to given typical cash seasonality, it would not expect to reach that level in the first three quarters of this year. The Board will assess the possibility of proposing a dividend distribution for financial year 2020 in the event the company exceeds the billion euros level after that point.

For fiscal 2020, Nokia affirmed its outlook for non-IFRS earnings per share in a range of 0.25 euros plus or minus 5 cents.

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