Nokia jumps on extended growth targets

Nokia (NYSE: NOK) jumped 7 percent Tuesday after it extended revenue growth targets of 25 percent to 35 percent for 2002 into 2003, and said it expects continued high profitability.

Shares were up 3.19 to 47.75.

Nokia also said it expects first-half 2001 revenue growth to be in the upper range of 25 to 35 percent.

Speaking at Nokia's annual global analyst meeting, Jorma Ollila, Nokia's Chairman and CEO, said that the best is yet to come for the company as the number of users in networks increases, and new applications and services are provided.

Nokia's said the company has a cost saving target of over EUR 1 billion per annum by 2003, which is planned to be achieved as Nokia transforms itself into an e-business company. It also estimates that target network markets will grow at about 30 percent annually over the next three years, reaching approximately EUR 90 billion in 2003.

Nokia announced financial estimates for Nokia Internet Communications, part of Nokia Ventures Organization, which is targeted to foster new growth opportunities beyond the current business scope. Targeted annual revenue growth is at least 50%, and Nokia Internet Communications is expected to reach the breakeven point during 2002.

Nokia also accelerated its estimate for future subscriber growth, stating that the 1 billion milestone for global subscribers may now be reached during the first half of 2002 rather than by end of 2002. Nokia also stated that it believes there will be more web-connected handsets than PC's in the world as early as 2002, versus its earlier projection of 2003.