IT 100 Special Report 2006 >

  THE INFOTECH 100 COMPANIES
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9

Nokia

(HLSE: NOK1V)

Finland

Finland's Nokia is far and away the world's biggest maker of mobile handsets, registering sales last year of nearly $44 billion and dominating almost every region except the U.S. Thanks to economies of scale, it's also the world's most profitable, with return on equity of almost 30%. Despite stiff competition from Samsung and other Asia upstarts, analysts are confident that Nokia can continue its dominance with new products for business and new handsets that are effectively handheld computers. The biggest question mark is whether new CEO Olli-Pekka Kallasvuo can fill the shoes of his legendary predecessor Jorma Ollila. Here's already showing an interest in big deals: On June 19, Nokia and Siemens announced that they will merge their telecommunications network equipment businesses in a deal valued at approximately $30 billion.

Company Info

2005 Rank

18

Sales*
($ Millions)

43,903.2

Sales Growth
(over prev. year)

16 %

Profits*
($ Millions)

4,643.2

Return on Equity

29.7 %

Total Return on Sales (12-mo.)

25.2

Share Price
As of 5/31/06

21.46

CURRENT
MARKET INFO

HLSE: NOK1V

No. of Employees

Industry Communications Equipment
COMPANY WEB SITE >
*Trailing 12 months
Stock price data as of 5/31/06
DATA: Standard & Poor's Compustat

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Company Snapshot

Nokia engages in the manufacture of mobile devices and mobile network equipment, as well as in the provision of related solutions and services worldwide. The company operates in four segments: mobile phones, multimedia, enterprise solutions, and networks. The mobile phones segment provides various mobile voice and data devices. This segment offers mobile phones and devices based on GSM/EDGE, 3G/WCDMA, and CDMA cellular technologies. The multimedia segment offers mobile devices and applications with multimedia connectivity over GSM, 3G/WCDMA, WLAN, Bluetooth, and other standards. Multimedia services include Internet services, optics, music synchronization, and streaming video. The enterprise solutions segment offers various products and solutions, including enterprise-grade mobile devices, underlying security infrastructure, software, and services for businesses and institutions. The networks segment provides network infrastructure, and communications and networks service platforms, as well as professional services to operators and service providers. It focuses on the GSM family of radio technologies, such as EDGE and 3G/WCDMA networks; networks with Internet Protocol and multi access capabilities; and services. As of December 31, 2005. This segment had approximately 150 mobile network customers in 60 countries, serving 400 million subscribers with its systems. The company sells its products to operators, distributors, independent retailers, and corporate customers. It has a joint venture with China Putian to focus on research and development, as well as to manufacture and sell 3G network solutions for TD-SCDMA and WCDMA technologies. Nokia has as strategic relationship with ATI Technologies to drive the complexity out of multimedia development by promoting open standards and providing integrated hardware, software, and tools. The company was founded in 1865 and is based in Espoo, Finland.


Data provided by Capital IQ
 
Olli-Pekka Kallasvuo

Olli-Pekka Kallasvuo

President and Chief Executive Officer

Olli-Pekka Kallasvuo has been president of Nokia since October, 2005, and serves as president of Nokia Mobile Phones. Kallasvuo has been chief executive officer of Nokia since May, 2006. Kallasvuo has been group executive board member since 1990 and chairman of the board since June, 2006. Kallasvuo served as chief operating officer of Nokia since October, 2005. Kallasvuo served as an executive vice-president and general manager of Nokia Mobile Phones from 2004 to 2005. Kallasvuo was with Nokia from 1980 to 1981 as corporate counsel and rejoined in 1982. Kallasvuo served as an executive vice-president and chief financial officer of Nokia from 1999 to 2003. Kallasvuo served as an executive vice-president of Nokia Americas and president of Nokia from 1997 to 1998, chief financial officer of Nokia from 1992 to 1996, and senior vice president-finance of Nokia from 1990 to 1991. From 1991 to 1996, he served as chairman and board member of Helsinki Exchanges. He served as chairman of Nextrom Holding from 1997 to 2005. He is a member of the board of directors of EMC. He served as a member of the nominating committee of OMX. He served as a director of Nextrom Holding from 1991 to 2005 and was a director of F-Secure Oyj. Kallasvuo obtained his master's degree in law in 1976 from the University of Helsinki.



Executive Data provided by Capital IQ