Inventories

12 Months Ended

Dec. 31, 2024

4.4. Inventories

Accounting policies

Inventories are measured at the lower of cost and net

realizable value. Cost is determined using standard cost,

which approximates actual cost on a first-in first-out

(FIFO) basis. In addition to the cost of materials and

direct labor, an appropriate proportion of production

overheads is allocated to the cost of inventory. Net

realizable value is the estimated selling price in the

ordinary course of business less the estimated costs

necessary to make the sale.

Contract work in progress comprises costs incurred to

date for customer contracts where the contractual

performance obligations are not yet satisfied. Contract

work in progress will be recognized as cost of sales when

the corresponding revenue is recognized.


EURm	2024	2023
Raw materials and semi-finished goods	708	1 156
Finished goods	930	980
Contract work in progress	525	583
Total	2 163	2 719

Inventories recognized as an expense during the year in

respect of continuing operations was EUR 5 050 million in 2024

(EUR 7 115 million in 2023 and EUR 7 709 million in 2022).

During the year write-downs of inventories to net realizable

value totaled EUR 259 million (EUR 287 million in 2023 and

EUR 261 million in 2022) and reversals of previous inventory

write-downs totaled EUR 54 million (EUR 88 million in 2023

and EUR 98 million in 2022). The write-downs and reversals

of previous write-downs have been included in cost of sales.

Previous write-downs have been reversed primarily as a result

of changes in estimated customer demand.

The amount of inventories expected to be recovered after

more than 12 months was EUR 464 million at 31 December

2024 (EUR 666 million in 2023).