The ratings on Finland-based mobile telecommunications equipment manufacturer Nokia Corp. reflect the company's dominant position in the mobile handset market, with an estimated 40% global market share, its industry-leading profitability owing to its strong product portfolio and large scale, excellent free cash flow generation of €7.0 billion in fiscal 2007, and conservative balance sheet. These factors are partly offset by the weak profitability of the network business due to a very challenging market environment, the very competitive nature of the mobile handset business requiring rapid technological advances to satisfy fast-changing customer demands, and Nokia's weak handset market positions in the U.S. and Japan. Nokia reported sales of €51.1 billion and operating profit of €8.0 billion in the fiscal year 2007.
