Presa dalla pubblicazione di un altro utente
Nokia Leads Paris Market After Beating Profit Expectations
Operating profit beat expectations thanks to cost-cutting and boosts from Alcatel-Lucent.
Mariko Iwasaki
Feb 2, 2017 4:31 AM EST
Nokia shares top gainers in Paris Thursday
after the Finnish telecom equipment maker beat profit expectations
after enjoying boosts from the newly acquired Alcatel-Lucent and cut costs.
Shares in the Espoo-based group advanced 2.9% to change hands at €4.34
each by 0930 GMT, leading the CAC-40 benchmark and extending their three
month gain to around 10%.
Nokia booked operating profit of €940 million ($1.02 billion) on sales of €6.72 billion
in the fourth quarter ended December, the company said, representing year on year
declines of 27% and 13%, respectively, but profit was above the consensus of €742
million called for by 40 analysts compiled by FactSet.
Revenue dropped in all the segments, including a decline of 14% in the networks business
and a 25% drop in the Nokia Technologies business, which includes revenues from brand licences.
Earlier this month, HMD Global unveiled the first Nokia-branded smartphone in three years.
Management expressed disappointment in top line growth but emphasized its cost-cutting
strategies and the success of its integration of Alcatel-Lucent.
"Our ongoing intense focus on execution, cost management and pricing discipline
was critical to offset the impact of challenging market conditions over the course
of the year," said CEO Rajeev Suri. "We were able to deliver solid results for the full year,
with profitability in our Networks business coming in at the high end of our guidance range."
Suri added that he sees potential for margin expansion in 2017 and beyond.
Gross margin came to 42.0% in the fourth quarter,
down from the 42.4% a year earlier,
but up from the 39.7% in the third quarter.
Operating profit margin came to 14.0%.
***************************
Nokia CorporationStockExchange ReleaseFebruary 2, 2017 at 08:05 (CET +1)
Nokia Board ofDirectors approves the Nokia Equity Program for 2017 and the issuance of sharesheld by the company
Espoo, Finland - Nokia announced today that its Board ofDirectors has approved the company's equity program for 2017 (the "NokiaEquity Program 2017"). In line with previous years, the Nokia Equity Program2017 includes the following equity instruments:
An employee share purchase plan for Nokia employees in selected jurisdictions (the "Employee Share Purchase Plan"), entitling the eligible employees to contribute a part of their salary to purchase Nokia shares. After a 12-month holding period, Nokia will offer the employees one matching share for every two purchased shares held by an employee at the end of the holding period;
Performance shares, which are dependent on the achievement of independent performance criteria ("Performance Shares"); and
Restricted shares, which are used on a limited basis or in exceptional retention and recruitment circumstances ("Restricted Shares").
Nokia EquityProgram 2017The NokiaEquity Program 2017 is designed to support and align the participants' focuswith Nokia's strategy and long-term success.
Nokia usesPerformance Shares as the main long-term incentive instrument with theintention to effectively contribute to the long-term value creation andsustainability of the company and to align interests of the employees withthose of Nokia's shareholders. Performance Shares are also designed to ensurethat the overall equity-based compensation is based on performance, while alsosupporting the recruitment and ensuring retention of vital talent for thefuture success of Nokia.
Restricted Sharesare granted on a limited basis for exceptional purposes related to retentionand recruitment, primarily in the United States, to ensure Nokia isable to retain and recruit vital talent for the future success of the company.
Since 2014, stock options have no longer been part of theNokia equity programs.
Employee Share Purchase Plan Under the Employee SharePurchase Plan, the
eligible Nokia employees may elect to make monthly contributionsfrom their net
salary to purchase Nokia shares. Participation in the planis voluntary.
The monthly minimum and maximum contribution limit to theEmployee Share
Purchase Plan is EUR 15 and EUR 150, respectively.Consequently, the maximum
participant contribution limit during the plan cycle is EUR1 800. Generally, the share
purchases will be made at market value on pre-determineddates on a monthly
basis during a 12-month period. Nokia intends to deliver onematching share for
every two purchased shares that the participant still holdson July 31, 2018, which
marks the end of the Employee Share Purchase Plan cycle for2017. The aggregate
maximum amount of contributions that employees can makeduring the enrolment
window for the plan cycle commencing in 2017 will beapproximately EUR 60
million, which equals approximately 14.2 million Nokiashares using the share price
of EUR 4.25. Accordingly, based on the matching ratio of onematching share for
every two purchased shares, the number of matching shareswould be
approximately 7.1 million.
The Employee Share Purchase Plan is planned to be offered toNokia employees in
up to 57 countries for the plan cycle commencing in 2017.The savings period is intended to start in July 2017 and the first monthly purchasesare planned to be made in August 2017.
Performance Shares Under the 2017 Performance Share plan, the pay-out will depend on whether independent performance criteria have been met by the end of the performance period. The performance criteria are Nokia's continuing operations average annual non-IFRS net sales and average annual non-IFRS earnings-per share (diluted).
The 2017 Performance Share plan has a two-year performance period (2017-2018) and a subsequent one-year restriction period. The number of Performance Shares to be settled would be determined by reference to the performance targets during the performance period. For non-executive participants, 25 per cent of the Performance Shares granted in 2017 will settleafter the restriction period, regardless of the satisfaction of the applicable performance criteria. In case the applicable performance criteria is not satisfied, employees who are executives at the
date of Performance Share grant in 2017 will not receive any settlement.
The grant under the 2017 Performance Share plan could resultin an aggregate maximum
settlement of 74 million Nokia shares, in the event thatmaximum performance against all the performance criteria is achieved.
Restricted Shares Under the 2017 Restricted Shareplan, the Restricted Shares are divided into three tranches, each tranche consisting of one third of the Restricted Shares granted. The first tranche hasa one-year restriction period, the second tranche a two-year restriction period, and the third tranche a three-year restriction period. The grant undert he 2017 Restricted Share plan could result in an aggregate maximum settlement of 4.5 million Nokia shares.
Employees covered by the Nokia Equity Program 2017In accordance with the previous years' practice, the primary equity instruments granted to executive employees and other eligible employees are Performance Shares.
Nokia limits the use of Restricted Shares as means ofcompensation. Shares under the Restricted Share plan can be granted for exceptional retention or recruitment purposes,
primarily in US markets to support the specific needs, practices and competitive market
environment, to ensure Nokia is able to retain and recruitvital talent for the future success of
Nokia.
Nokia employees in up to 57 countries are planned to be offered the possibility to participate in the Employee Share Purchase Plan forthe cycle commencing in 2017, provided that there are no local regulatory or administrative restraints in relation to such plan.
Dilution effectAs of December 31, 2016, the aggregate maximum number of shares that could be issued under Nokia's outstanding equity programs and stock option rights, assuming the Performance Shares would be delivered at maximum level, represented approximately
1.67 per cent of Nokia's total number of shares (excludingthe shares owned by Nokia Corporation). The potential maximum number of shares that could be issued under the Equity Program 2017 represents approximately an additional 1.49 per cent, assuming delivery at maximum level for Performance Shares and the delivery of matching shares against the maximum amount of contributions of approximately EUR 60 million under the Employee Share PurchasePlan.
Settlement of shares under various Nokia equity plansTofulfill Nokia's obligations under the 2013, 2014, 2015 and 2016 Restricted Share plans and the 2014 Performance Share plan in respect of shares to be settled in 2017, Nokia's Board of Directors has resolved to issue, without consideration, a maximum of 9.75 million Nokia shares held by the company to settle its commitments to plan participants, who are all employees of the Nokia Group.
The performance period for the 2015 Performance Share plan ended on December 31, 2016, and Nokia's performance over 2015 and 2016,assessed against the independent performance criteria set out in the plan rules, was above the threshold performance level for the plan. The settlement to the participants under the plan is planned to take place in the beginning of 2018 after the restriction period ends.
Vedi l'allegato Nokia Corporation Report For Q4 2016 And Year 2016t.pdf